Item No: 5H.
Meeting Date: May 13, 2013
From: Raymond S. Sharp, Interim City Manager
Subject: Resolution expressing support for renewal of six-cent local option fuel tax
Staff recommends approval of the resolution expressing support for renewal by the Lake County Commission of the six cents of local option fuel tax.
The Lake County Board of County Commissioners enacted all six of the one to six cent fuel taxes, by enacting two cents of the tax in three separate years, in 1984, 1985 and 1986. These taxes expire in 2014, 2015 and 2016, respectively.
The historic funding provided by this source is approximately $1.2 million annually to the City of Leesburg. The uses of these funds are restricted to public transportation operations and maintenance, roadway and right-of-way maintenance and drainage, street lighting, traffic signs, traffic engineering, signalization, pavement markings, bridge maintenance and operation, and debt service. The primary uses for these funds by the city have been for streets resurfacing and rebuilds and sidewalk work. Other uses have included signalization upgrade projects for many of our intersections.
Should this funding source lapse, the city will not be able to find a ready replacement, placing the resurfacing program at risk.
1. Adopt the resolution of support as presented; or,
2. Such alternative action as the Commission may deem appropriate
Should these fuel taxes expire, there will be a significant negative impact on General Fund revenues, and on our ability to fund transportation-related maintenance and improvements, such as streets resurfacing and signalization improvements.
Prepared by: R. Sharp
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes X No ____
Reviewed by: Dept. Head ________
Finance Dept. _BLM____________
Deputy C.M. ___________________
City Manager ___________________
Account No. _133-0000-3xx-xxxx__
Project No. ___________________
WF No. ______________________
RESOLUTION NO. ____________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, IN SUPPORT OF THE RENEWAL BY LAKE COUNTY COMMISSION OF THE SIX CENTS OF LOCAL OPTION FUEL TAX FOR THE CONTINUING OPERATIONS OF LAKE COUNTY PUBLIC WORKS, INCLUDING MAINTENANCE AND PERSONNEL COSTS, AND FOR DISTRIBUTION AMONG LAKE COUNTY AND ITS VARIOUS MUNICIPALITIES TO BE SPENT FOR TRANSPORTATION RELATED PURPOSES; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, by Florida law, Florida counties are authorized to levy up to twelve cents of local option fuel taxes in the form of three separate levies; and
WHEREAS, one such type of local option fuel tax, codified in §336.025(1)(a), Fla. Stat. (2012), is a tax of one to six cents on every gallon of motor and diesel fuel sold within a county, and it may be authorized by an ordinance adopted by majority vote of the governing body or referendum; and
WHEREAS, the one to six cent fuel tax may be used only to fund “transportation expenditures”, defined in §336.025(7), Fla. Stat. (2012), as public transportation operations and maintenance, roadway and right-of-way maintenance and drainage, street lighting, traffic signs, traffic engineering, signalization, pavement markings, bridge maintenance and operation, and debt service; and
WHEREAS, pursuant to §336.025, Fla. Stat. (2012), the one to six cent fuel tax must be distributed between a county and the municipalities within the county, based either on transportation expenditures of each for the preceding five fiscal years, or on the formula approved by the county and municipalities representing a majority of the incorporated population in an interlocal agreement; and
WHEREAS, the Lake County Board of County Commissioners has enacted all six of the one to six cent fuel taxes, by enacting two cents of the tax in three separate years, in 1984, 1985 and 1986; and
WHEREAS, the first two-cent fuel tax will expire August 31, 2014, the second two-cent fuel tax will expire on August 31, 2015, and the third two-cent fuel tax will expire on August 31, 2016; and
WHEREAS, proceeds from the six cents of Local Option Fuel Taxes are shared by Lake County and the municipalities based on Interlocal Agreements, and are expended by Lake County primarily for operations and personnel costs for activities of Lake County Public Works; and
WHEREAS, Lake County is considering the extension of some or all of the six cent fuel taxes, which would entail entering into a new Interlocal Agreement with the municipalities to provide for distribution of the taxes, if extended; and
WHEREAS, Lake County maintains County jurisdictional rights-of-way and roadways within each of the 14 municipalities of Lake County, within the Joint Planning Areas, and within the boundaries defined by Interlocal Service Boundary Agreements between Lake County and municipalities; and
WHEREAS, the municipalities of Lake County benefit from the continued maintenance by Lake County of rights-of-way and roadways within the municipalities and within municipal growth and service boundaries, and some municipalities within Lake County have assumed responsibility for maintenance of County roads within their jurisdiction; and
WHEREAS, the City of Leesburg desires to support the Lake County Board of County Commissioners in the renewal of the six cents of Local Option Fuel Taxes in three separate actions in 2014, 2015 and 2016.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Leesburg, Florida, that the City of Leesburg does hereby express its support for the renewal of six cents of Local Option Fuel Taxes by the Lake County Board of County Commissioners.
PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, this __13th ____ day of May, 2013.
THE CITY OF LEESBURG, FLORIDA
DAVID KNOWLES, Mayor