AGENDA ITEM REPORT
TITLE:
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A RESOLUTION IMPOSING A ONE CENT PER DOLLAR LOCAL GOVERNMENT INFRASTRUCTURE SURTAX ON ALL AUTHORIZED TAXABLE TRANSACTIONS OCCURRING WITHIN BROWARD COUNTY, FLORIDA, AS AUTHORIZED BY SECTION 212.055(2), FLORIDA STATUTES, PROVIDING THAT THE IMPOSITION OF THE SURTAX SHALL NOT BE EFFECTIVE UNLESS APPROVED AT A REFERENDUM ELECTION.
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BACKGROUND:
Florida law authorizes local governments to impose various types of local option surtaxes. Two surtaxes currently being considered in Broward County are the Charter County and Regional Transportation System Surtax and the Local Government Infrastructure Surtax. The timeliness of this discussion is important because of the formal approvals required from the Broward County Board of Commissioners and/or other municipalities prior to a countywide referendum that is required to impose either tax.
The Broward Metropolitan Planning Organization (MPO) has taken the lead in educating and facilitating discussions between the County and municipalities regarding the surtax options. The MPO formed a Surtax Subcommittee, consisting of the municipalities that equate to over 51% of the County’s population. This subcommittee has held monthly meetings to discuss the potential surtax options and initiate action. Currently, MPO representatives have been meeting with representatives from Broward County. The objectives have been to discuss the “must haves” from the respective jurisdictional interests and to negotiate a compromise between the County and municipalities.
Based on the results of these meetings and discussions, the MPO Board, at its regular meeting on March 10, 2016, proposed for the County to adopt a Transportation Surtax that would distribute surtax revenues to the municipalities based upon population. The County was asked to adopt this surtax by April 5, 2016, or the municipalities in the County would seek to adopt a Local Government Infrastructure Surtax as authorized in Section 212.055(2), Florida Statutes.
DISCUSSION:
The MPO has made a valiant effort to obtain consensus from the Broward County Commission regarding a One Cent Surtax to be placed on the November ballot. At this time, the MPO Surtax Subcommittee sees no purpose to convene additional meetings. Broward County City Managers, City Attorneys, and some elected officials met on March 31, 2016 to gauge interest regarding subject resolution. Pursuant to the March 31st meeting, cities representing 67.39% of the Broward County population indicated they would present the Local Government Infrastructure Surtax resolution to their local governing body.
The required number of cities to call a County election is equivalent to fifty one percent (51%) of the Broward County population. If enough cities in Broward County approve a like resolution calling for a One Cent Infrastructure Sales Tax election in November, 2016 and the referendum is successful, this would eliminate the need for a General Obligation Bond Issue to fund the unfunded County projects discussed at the Coconut Creek City Commission Workshop on April 28, 2016.
RECOMMENDATION:
Staff recommends approval of this Resolution, establishing the rate of a Local Government Infrastructure Surtax and calling for a referendum on the surtax as authorized in Section 212.055(2) of Florida Statutes.
FISCAL IMPACT:
REVENUES: $ 5,736,000
EXPENDITURES: N/A
BUDGETED? N/A
NOTES: Account number to be determined.