AGENDA ITEM REPORT
TITLE:
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A RESOLUTION RESCINDING RESOLUTION NO. 2016-124 RELATING TO THE IMPOSITION OF A ONE CENT INFRASTRUCTURE SALES SURTAX UPON VOTER APPROVAL; APPROVING A COMPROMISE SALES SURTAXES PROPOSAL BETWEEN THE PARTICIPATING BROWARD MUNICIPALITIES AND BROWARD COUNTY; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE THE TRANSPORTATION SYSTEM AND INFRASTRUCTURE SURTAXES INTERLOCAL AGREEMENT, AND SUPPORTING THE COUNTY’S PLACEMENT OF A 30 YEAR ONE HALF-CENT INFRASTRUCTURE SALES SURTAX AND A 30 YEAR ONE-HALF CENT COUNTYWIDE TRANSPORTATION SYSTEM SALES SURTAX ON THE NOVEMBER 8, 2016 GENERAL ELECTION BALLOT. (ADDENDUM)
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BACKGROUND:
On May 12, 2016, the City Commission approved Resolution 2016-124, imposing a one-cent local government Infrastructure Surtax on all taxable transactions occurring within Broward County, as authorized by Section 212.055 (2), Florida Statutes, providing that the imposition of this one-cent surtax shall not be effective unless approved at a referendum election scheduled in November. This Infrastructure Surtax was to be split 40% to Broward County and 60% to the participating cities in Broward County, distributed based on population. The Surtax use was to be restricted to capital infrastructure projects with a 15% allowance for economic development.
DISCUSSION:
Subsequent to the cities approving these resolutions, authorizing the Supervisor of Elections to place the one-cent Infrastructure Surtax on the ballot, the Broward County Commission passed a resolution authorizing the Supervisor of Elections to place a .75-cent Transportation Surtax on the ballot. Two surtax ballot questions are now with the Supervisor of Elections equal to 1.75 cent increase in sales tax.
The cities and County negotiated the attached proposed Interlocal Agreement (ILA) to rescind both surtax ballot items previously approved and replace with the following surtax structure for a 30-year term:
A) 0.5 Cent Transportation Surtax
• 100% of the proceeds to Broward County.
B) 0.5 Cent Infrastructure Surtax
• Years 1-20: 100% of the proceeds directly to the cities, distributed based on population;
• Years 21-30: 60% of the proceeds directly to the cities, distributed based on population, and 40% directly to Broward County.
The ILA also provides for an Oversight Board, which will approve surtax projects allowed by State Statute. Members of the Board shall not be current elected or appointed County of City officials or employees.
RECOMMENDATION:
Staff recommends approving Resolution 2016-161, which repeals Resolution 2016-124 and approves the attached Transportation System and Infrastructure Surtaxes Interlocal Agreement with Broward County.
FISCAL IMPACT:
REVENUES: $ 4,780,000
EXPENDITURES: N/A
BUDGETED? N/A
NOTES: Account number to be determined.