HomeMy WebLinkAbout3(A) Six Cent Gas Tax - Jack H. Douglass, Jr TABLE OF CONTENTS
Page
Table - OC/Cities Five Year Population Increase
1
Memo - Local Option Gas Tax 2
(from Carol Levin Reiss)
Draft - 1997 Interlocal Agreement on Local 4
Fuel (Gas) Tax Distribution
Exhibit A - To draft 1997 Interlocal Agreement 8
on Local Fuel (Gas) Tax Distribution
Summary - Local Government Infrastructure Surtax 9
Sales Tax Distribution Formula (Tourist Scenario)
10
Legislative Agenda for Apopka, Ocoee & Winter Garden 12
Memo - Local Gas Tax Distribution Legislative Issues
15
(from Ellis Shapiro)
. I
Orange County and Cities
1
Five Year Population Increase as a Percentage
1990 1996 Percentage
Population Population Differance of Increase
Ocoee 12,778 19,261 6483 50.74%
Apopka 13,611 19,255 5644 41.47%
Edgewood 1 ,062 1,479 417 39.27%
Windermere 1,371 1,776 405 29.54%
Winter Garden 9,863 12,413 2550 25.85%
Orange County 432,305 506,732 74427 17.22%
Maitland 8,932 9,871 939 10.51%
Winter Park 22,623 24,750 2127 9.40%
Oakland 700 748 48 6.86%
Belle Isle 5,272 5,596 324 6.15%
Orlando 164,674 173,122 8448 5.13%
Eatonville 2,505 2,506 1 0.04%
Total 675,696 777,509 101813 15.07%
DEB-21-1997 12:04 FROM COUNTY ADMINISTRATOR TO 98891705 P.01
çange County
• County Administrator's Office
}• y.,
:Ol Evuth Roalind Avenue
' - - Rely To:Post Office Box 1393
� Orlando.Florida 37.0024393
- `.;7.`
Telephone 147 836-7370
FAX(4071$36-7399
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DATE: a n7i'97
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FACSIMILE TRANSMISSION NOTICE
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(Name of pient)
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FROM: ORANGE COUNTY ADMINISTRATOR'S OFFICE
. • NAME OF SENDER: 9e-r7FOR XOUR INFORMATION
1 AS REQUESTED
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1_1 FOR MODIFICATION AND REVIEW •
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' SB-21-1997 12:04 FROM COUNTY ADMINISTRATOR TO 98891705 P.02
4 *4 eSiv74.,
o
IU TrY
GOVERNMENT
e L 0 K I A A
MEMORANDUM
TO: Jft`Bennett;..€unty Administrator
Tom Wilkes,County Attorney
Sharon Donoghue,Manager,Office of Management and Budget
Randy Singh,Office of Management and Budget
FROM: Carol Levin Reiss,Assistant County Attorney Qf/2,
DATE: February 20, 1997
RE: Local Option Gas Tax
Assistant City Attorney Jodi Litchford and I spoke with Rick McClure,an attorney with
the Department of Revenue,this afternon regarding the proposed interlocal agreement for
distribution of local option gas tax proceeds. Rick McClure indicated that if the Department of
Revenue receives the revised interlocal agreement by June 1st,the new distribution will be
effective as of July 1997. Rick McClure,however,noted that the County may not receive any
revenue under the new distribution until three months later(September)but that the new
distribution would be effective in July 1997.
Accordingly,I have revised the attached interlocal agreement. Mr. McClure graciously
offered to.have our draft interlocal agreement reviewed for comment by the Department of
Revenue.
Please let me know if you have any comments. RECG E D}
CLR:sac FEB 2 1 199?
Attachment ORANGE COUNTY
cc:Rick McClure,Esq.,Department of Revenue(via fax ADMINISTRATOR
Jodi Litchford,Assistant City Attorney,City of Orlando, Office of Legal Affairs
(via fax#246-2854)
sac:conesp:clrbeama
COUNTY ATTORNEY'S OFFICE•THOMAS J. WILKES. COUNTY ATTORNEY
201 South Rosalind Avenue-5th Floor•Rcply'Ib:Post Oflke Box 1393.Orlando.Florida 32802.1393
Telephone(4U7)836.7 20•F X(407)886.588
FEB-21-1997 12:05 FROM COUNTY ADMINISTRATOR TO 98891705 P.03
DRAFT
02/20/97
ORLANDO-ORANGE COUNTY
1997 INTERLOCAL AGREEMENT
ON ,
LOCAL FUEL (GAS)TAX DISTRIBUTION
This 1997 Interlocal Agreement is entered into this day of , 1997,by Orange
County, a political subdivision of the State of Florida(the"County"), and the City of Orlando, a
Florida municipal corporation(the"City").
RECITALS
1. Orange County and the City of Orlando entered into an Interlocal Agreement dated
July 21, 1983 pertaining to the distribution of the proceeds of the four cent local option gas tax
among the County and the municipalities in Orange County.
2. An amendment to the 1983 Interlocal Agreement was signed on June 27, 1985. This
amended agreement provided for the distribution of an additional two cents of local option gas tax
in the same manner as stipulated in the 1983 Interlocal Agreement.
3. . On May 30, 1996,Senate Bill 330 became law as Chapter 96-323,Laws of Florida.
This law amended Section 336.025,Florida Statutes,to require the utilization of annual population
statistics for dividing local option fuel (gas)tax funds, collected pursuant to Section 336.025(1),
Florida Statutes,and such law applies to Orange County.
4. The City and the County desire to implement a new distribution formula for the local
option fuel tax based upon a population formula that will be updated annually based upon data
provided by the Bureau of Economic and Business Research at the University of Florida to the
Executive Office of the Governor.
5. In an effort to facilitate the parties' agreement to utilize a population formula for
distribution of the local option 1 fuel tax,the City and County have agreed to phase the new
population based formula over a four-year period in order to defray revenue losses which some
municipalities will experience as a result of the formula.
FEB-21-1997 12:05 FROM COUNTY ADMINISTRATOR TO 98891705 P.04
6. The parties hereto desire to provide for the distribution of all local option fuel tax
revenues collected under the authority of Section 336.025(1),Florida Statutes,by adopting the new
population-based formula required therein.
ACCORDINGLY,THE PARTIES HERETO AGREE AS FOLLOWS:
Section 1. Beginning in State of Florida fiscal year 2001/2002,and in each fiscal year
thereafter all proceeds of the local option fuel (gas)tax imposed under the provisions of Section
336.025(1), Florida Statutes (or any successor legislation), less any service charges and fees
collected by the Florida Department of Revenue, or its successor agency,(the"net tax proceeds")
shall be divided and distributed to Orange County'and the municipalities identified in Exhibit"A",
attached hereto and incorporated herein by reference, based on each listed governmental entity's
percentage of Orange County's total estimated populations as of April 1 of She
proceeding Statesf Florida fist eeeb year. For purposes of calculating the County's share of the
net tax proceeds,the County's population shall be deemed to be those citizens residing outside the
boundaries of any municipality plus those citizens residing within the boundaries of Bay Lake and
Lake Buena Vista. The population percentages shall be updated annually using data provided by or
at the request of the Executive Office of the Governor,pursuant to Section 186.901,Florida Statutes,
as amended from time to time.
Section 2. For the four transitional years, State of Florida fiscal years 1997/1998,
1998/1999, 1999/2000 and 2000/2001,the net tax proceeds of the local option fuel(gas)tax imposed
under the provisions of Section 336.025(1), Florida Statutes, shall be divided and distributed to
Orange County and the municipalities pursuant to the percentages set forth in Exhibit"A".
Section 3. The City and the County hereby covenant to each other and to the
municipalities listed in Exhibit"A"to take no action whatsoever in the future which would impair
2
FEB-21-1997 12:06 FROM COUNTY ADMINISTRATOR TO 98891705 P.05
the rights of any party under contracts entered by the County, the City, or the municipalities
identified in Exhibit "A" expressly in anticipation of the distribution and receipt of the net tax
proceeds. Further,the City and County hereby covenant to each other to waive any claim that this
1997 Interlocal Agreement is invalid,unconstitutional,or unenforceable in any manner.
Section 4. The City and the County agree to work together towards finding a long term
solution for the funding of the. Central Florida Regional Transportation Authority ("Lynx").
Section_5. The City and County hereby repeal the previous Interlocal Agreements
referenced in Recital Nos. 1 and 2 herein.
,section 6. This 1997 Interlocat Agreement shall become effective as of the date of
execution by the City or the County.whichever is later.and shall terminate on December 31,2015,
Notwithstanding the foregoing. should the Florida legislature amend Section 336.025, FJoridd
Statutes. to provide for an alternate local option fuel (gas) tax distribution method. this 1997
jisterlocal Agreement shall terminate upok he effective date of any such xnendmens or uponLsuch
otliguktutsinutally_agrteltabyikpartio.
WHEREFORE,the parties hereto have executed this 1997 Interlocal Agreement as of the
day and year.set forth above.
ORANGE COUNTY,FLORIDA
by: Board of County Commissioners
BY:
County Chairman
DATE:
ATTEST: Martha 0.Haynie, County Comptroller
As Clerk to the Board of County Commissioners
BY:
Deputy Clerk
3
FEB-21-1997 12:06 FROM COUNTY ADMINISTRATOR TO 98891705 P.06
CITY OF ORLANDO
BY:
Glenda E. Hood,Mayor
ATTEST:
BY:
Grace A. Chewning,City Clerk
clr:agrcnt\gastax.wpd
(02/20/97)
4
LUUNTY ADMINISTRATOR TO 98891705 P.07
Orlando-Oran e Coun
1997 lnterlocal Agreement
On Local Option Fuel Gas Tax Distribution
Local Option Fuel (Gas) Tax Distribution Percentages Schedule
For the State of Florida Fiscal Years 1997-2001
Exhibit "A"
Distribution Distribution Distribution Distribution
Percentages Percentages Percentages Percentages
Uninc. Oran!e Coun 61.74% 62.96% 64.07% 64.66%
Orlando
23.00%ME
A•o•ka
2.49%MEM 2.56% 2.69%
0.71% 0.70% 0.69% 0.72%
Eatot[2:95e1111111111111111110
0.36% 0.34% 0.32% • 0.30%
Ed.ewood
0.17% 0.16% 0.16% 0.14%
Maitland
11111111EMEMEZI 1.29% 1.16%
Oakland
0.10% 0.10% 0.10% 0.10%
Ocoee
2.57% 2.63% 2.65% 2.81%
Windermere
0.23% 0.23% 0.23% 0.24%
Winter Garden
1.63%MI111111.101.4% 1.64%
Winter Park 3.38% 3.26%minaza
Oran e Coun Total' 100.00% 100.00% 100.00% 100.00%
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* Excludes Bay Lake and Lake Buena Vista
itRandy/WGIAGRE.110(4
TOTAL P.07
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LOCAL GOVERNMENT INFRASTRUCTURE SURTAX
(A short summary)
Enactment Requires:
1. Requires ordinance enacted by a majority of the members of the county governing
authority and approval a majority of the electors of the county.
2. A statement which includes a brief general description of the projects to be funded by
the surtax shall be placed upon the ballot. The following question shall be placed on
the ballot:
FOR the -cent sales tax
AGAINST the -cent sales tax
Distribution of Proceeds:
1. An interlocal agreement between the county governing authority and the governing
bodies of the municipalities representing a majority of the county's municipal
population, which agreement can include a school district with the consent of the
county governing authority and the governing bodies of the municipalities
representing a majority of the county's municipal population.
2. If there is no interlocal agreement distribution will be in accordance to F.S. s. 218.62
Distribution Factor= Municipal Population
Total County Population+ (2/3 x Incorporated Population)
Municipal=Distribution x Total Ordinary Distribution Amount
Share Share for the County
Unincorporated
Distribution Factor= County Population + (2/3 x Incorporated Population)
Total County Population+ (2/3 x Incorporated Population)
County=Distribution x Total Ordinary Distribution Amount
Share Share for the County
Proceeds Can Be Used To:
• Finance, plan, and construct infrastructure and to acquirer land for public
recreation or conservation or protection of natural resources and to finance the
closure of county -owned or municipally owned solid waste landfills that are
Local Government Infrastructure Surtax Summary
Page 2
already closed or are required to close by order of the Department of
Environmental Protection.
Infrastructure Means:
1. Any fixed capital expenditure or fixed capital outlay associated with the
construction, reconstruction, or improvement of public facilities which have a
life expectancy of 5 or more years and any land acquisition, land
improvement, design, and engineering costs related thereto.
2. A fire department vehicle, an emergency medical service vehicle, a sheriff's
office vehicle, a police department vehicle, or any other vehicle, and such
equipment necessary to outfit the vehicle for its official use or equipment that
has a life expectancy of at least 5 years.
Infrastructure Does Not Mean:
• According to Attorney General Opinion 94-79 a county is not authorized to
expend the proceeds of the Local Government Infrastructure Surtax for such
things as fencing, swings, lumber, and lighting fixtures for use in county-
owned recreational facilities because such items do not fall within the
definition of a"fixed capital expenditure" or a"fixed capital outlay."
Proceeds May Not Be Used For:
• Counties and municipalities shall not use the proceeds to supplant or replace
user fees or to reduce ad valorem taxes existing prior to the levy of the surtax.
Issuance of Bonds:
• School districts, counties, and municipalities may pledge proceeds for the
purpose of servicing new bond indebtedness incurred pursuant to law. Local
governments may use the services of the Division of Bond Finance of the
State Board of Administration to issue bonds. In no case may a jurisdiction
issue bonds more frequently than once a year.
General Information:
• Thirty counties have imposed the surtax as of June 1, 1996.
• The tax is applied only on transactions of$5,000 or less.
• The Department of Revenue is authorized to deduct 3% of the total revenue
generated for administrative cost. However, the Department is currently not
deducting any amount of revenue for administering these taxes.
Prepared By: Orange County,Fiscal&Human Resources Division; Division Office
:------ " it i .
II I i I I I I
Sales Tax Distribution Formula (Tourist Scenario) I j
I I I
I
Population I State Default Formula Population Formula Difference
Apopka 18,449I $ 3,010,442 $ 3,690,648 $ 680,206
Belle Isle 5,591 I I 909,558 1,118,457 208,899
2,489 I 391,252 497,914 I 106,663
Edgewood '
Egewoole 1,137 184 970 227,452 I 42,482
I
9 Maitland9,525 I 1,549,552 1,905,438 I 355,886
151,035 I 28,209
Oakland 755 I 122,825 693,486
Ocoee 18,578 I 3,022,968 3,716,454
Orlando 170,307 I 27,776,103 34,069,228 6,293,125
1 692 I 279,977 338,478 58,501
Windermere 452,022
Winter Garden 12,098 I 1,968,134 2,420,156 924,037
Winter Park 24,570 I 3,991,092 4,915,129
I I
•Unincorporated 493,771 i i 108,620,411 • 98,776,895 (9,843,516)
Orange County
ITOTAL I 758,962 i $ 151,827,284 ' I $ 151,827,284
' Bay Lake and Lake Buena Vista are included in unincorporated Orange County
"Although the total revenue received from infrastructure sales tax is$167,827,284
Ithe above scenario subtracts the hotel contribution of$16m(5th cent tourist tax).
•
Legislative Agenda for Apopka, Ocoee, and Winter Garden
Item #1 Ocoee would like to share the cost of constructing a flyover at Maguire and Old
Winter Garden Road in connection with the Beltway and possibly Florida Turnpike
accessibility with the State funding the remaining portion of the next three sessions
of the legislature. They expect the cost would be approximately eight to ten million
dollars.
Item#2 Apopka, Ocoee, and Winter Garden support the Western Beltway with priorities
given to Part A and the northern section of Part C as priority one. Priority two would
be the remainder of Part C and priority three would be the Apopka Bypass which
would be the missing link on the Western Beltway.
Item#3 Apopka, Ocoee, and Winter Garden support the compromised position of the Six
Cent Gas Tax offer by the City of Orlando to Orange County. It is our position we
should proceed with the correction to the state law to incorporate this proposed local
agreement, if adopted before legislative session. If not adopted, we should proceed
with correcting the state law and adjust with a future bill toward the end of the
session.
Item#4 Apopka, Ocoee, and Winter Garden support the Economic Revitalization of the area
as a result of the muck farm buyout program. We support any process that will
provide additional jobs,by attracting additional and replacement of commerce to the
Lake Apopka rim area from Winter Garden all the way around to the north of Lake
Apopka to the northern Apopka area. This may include airparks, commercial parks,
enterprise zone, educational retraining, infrastructure funding within this target area.
Item#5 Apopka, Ocoee, and Winter Garden support the final funding of the IFAS
Consolidated Research Center located on the eastern edge of Lake Apopka. The
State should make sure that the last part of the consolidation of the IFAS facility
located between Apopka and Ocoee is complete. Last year, the legislature partly
funded this construction. This year, legislature should complete the funding for
construction and land purchase.
Item#6 Annexations - State law requires an agency to describe a property by metes and
bounds when a more acceptable manner for describing a property is based on
sectional description as provided by the Property Appraiser's Office. This law
should be changed to make both acceptable.
Item#7 Fire Pension Plan (ISO) - If an agency provides a higher level of service, i.e. rating
of two when the agency was previously a six, the premium distribution could be
lower for the premium tax in connection with the funding of the Firefighter's Pension
Plan. The reason for this is the premium tax is based on gross receipts. The
insurance companies generally give a substantial discount depending on what ISO
rating has been obtained. Therefore, the better the rating, the lower the insurance
premiums. The laws should be changed so it would provide some incentive to
improve level of service rather than the current disincentive. This is in reference to
Florida Statute 185.08.
Item#8 Mandated Impact on Trim Process -The Trim Process should not require an agency
to show an increase property tax when the mandate is caused by transfer of cost from
one agency to another, i.e. crossing guards transferred from Orange County to the
cities.
/mrs
Iegag2
"CENTER OF GOOD LIVING-PRIDE OF WEST(azaE'. --, OR• COMMISSIONER
e� Ocoee S.Sc TT VANDERGRIFT
MAR 0 5 1997
COMMISSIONERS
•� a CITY OF OCOEE BY: ),J SR
STY TT ENR�SO
v
J�� �`
150 N.LAKESHORE DRIVE OTT A.GLASS
('� f: `�V OCOEE,FLORIDA 34761-2258 JIM GLEASON
.� (407)656-2322
CITY MANAGER
Of 0000 ELLISSHAPIRO
i.. a ' . . . , MEMORANDUM
TO: John Land, Mayor of Apopka
Jack Quesinberry, Mayor of Winter Garden
FROM: Ellis Shapiro, Interim City Manager as Signed in Mr.. Shapiro's
absence to avoid delay
DATE: March 5, 1997 '
RE: LOCAL GAS TAX DISTRIBUTION
LEGISLATIVE ISSUES
At the City Commission meeting held on March 4, 1997, the Ocoee City Commission
discussed the proposed legislative package that will be presented for discussion with all
three cities at the meeting to be held on March 6, 1997, in Apopka. The City
Commission approved Items #1-8 as written, with the exception of Item #3 and submits
the following recommendations and two new items:
Item#3
With respect to the proposed agreement between the City of Orlando and Orange County
which would settle the local option gas tax dispute, the City of Ocoee cannot support the
agreement unless the entire second sentence of Section 6 ("Notwithstanding the
foregoing, should the Florida Legislature amend Section 336.025, Florida Statutes, to
provide for an alternate local option fuel (gas) tax distribution method, this 1997
Interlocal Agreement shall terminate upon the effective date of any such amendment
or upon such other date as mutually agreed to by the parties.") is removed.
Item#9
The City of Ocoee supports legislation which would require the school board to do a
better job in working with the cities and the county for comprehensive planning,to wit:.
Sections 235.193 of,Florida Statutes states that it is the policy of the state "to
require the coordination of planning between (school) boards and local governing bodies
to ensure that plans for the construction and opening of public educational facilities are
facilitated and coordinated in time and place with plans for residential development,
concurrently with other necessary services." Section 235.194 of Florida Statutes states
that it is the policy of the state to foster coordination between school boards and local
general-purpose governments. This section also requires each school board to provide
local general-purpose governments a copy of the school board's general educational.
facilities report by the City of Ocoee, our local school board has been either Unable or
unwilling to coordinate, cooperate, or participate in our planning process.. The City.of
Ocoee believes that.such joint planning and cooperation'is critical to``ourefforts to'reduce
the intolerable overcrowding currently experienced at many, if not most, schools in our.
area. The lack of such coordination severely hampers the City's ability to engage.,in,,::,:'
creative joint educational/recreational'use p oreover, hC salways
in a better negotiating position with respect to development than the school board and;'
with a higher level of cooperation from the school board; would be a better position
work with the private sector to reduce"or preclude many problems the school board must
later address after development has occurred. For these reasons, the City of Ocoee
strongly supports the amendment of Sections 163.193 and 163.194 to include a mutual
enforcement mechanism to allow either school boards or local general-purpose
governments to bring recalcitrant parties into the joint planning process.
Item#10
The City of Ocoee supports legislation relating to the annexation of enclaves, amending
the procedure by which a municipality may expedite the annexation of enclaves and
removing restrictions on the applicability of the procedures. In order to expedite the
annexation of enclaves of 10 acres or less into the most appropriate incorporated
jurisdiction, based upon existing or proposed service provision arrangements, a
municipality may (a) annex an enclave by interlocal agreement with the county having
jurisdiction of the enclave,; or (b) annex an enclave with fewer than 25 registered voters
by municipal ordinance when the annexation is approved in a referendum by at least 60
percent of the registered voters who reside in the enclave. This does not apply to
undeveloped or unimproved real property. Voluntary annexation of individual parcels of
lands within an enclave not contiguous to a municipality may occur at varying stages of
time.
ES2w:fdg:112
cc: Jack H. Douglas, Apopka Assistant City Administrator
Hollis Holden, Whiter Garden City Manager
S. Scott Vandergrift, Mayor of Ocoee
Ocoee City Commission .
Jim Shira, City Engineer/Utilities Director
Ron Strosnider,Fire Chief
Russ Wagner, Planning Director
Jean Grafton, City Clerk