HomeMy WebLinkAboutDocumentation_Regular_Tab 10G_7/20/2000 X G
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rt : MEMO RAND UM
To: Village Council
From: Joann Manganiello, Acting Village Managed .
Date: July 13, 2000 0^`
Subject: Response to PalmTran Request for Expression of
Interest in Municipal Funding of Transit Services
with Local Option Gas Tax Funds; Agenda Item
The Village has received correspondence from the Executive Director
of PalmTran dated June 5, 2000, copy attached, requesting an
expression of interest from the municipalities of Palm Beach County
in exploring options for funding of public transit services. The
suggested options for municipal consideration are:
1 . Designation of funding from the municipal share of
the` Local Option Gas Tax to fund specific services in
its jurisdiction.
2 . Creation of a community based transit system.
In regard to the idea of a community based or local based transit
system, there are many reasons to fund and not fund local transit
systems, whether operated by a municipality of other entity. A
local transit service operated by the Village of Tequesta would not
be effective or warranted since there has been little use of or
interest in public transit bus service by our community. Any such
transit service could negatively affect the financial position of
any such operation. In fact, PalmTran has not had much success
with its provision of passenger bus service in the North County.
Surveys have indicated very little use of the bus service north of
Indiantown Road and Village of Tequesta ridership is extremely
poor. In fact, PalmTran has just recently altered its northernmost
bus route cutting out Tequesta entirely.
There are numerous federal regulations that the local transit
operator would have to comply with. For example, there is a
federal requirement that mandates the local public transit service
provider to give front door to point of destination transport
service to any disabled person requesting same and residing within
a certain radius of the transit routes of the local public transit
service provider. This requirement is often a major contributor to
the red ink experienced by public transit service providers and is
one example of the complexities of operating public transit
services in this day and age.
Local governments are authorized, by statute, to levy up to 13
cents of local option gas taxes in the form of three separate
levies . The first is a tax of 1 to 6 cents on every net gallon of
motor and diesel fuel sold in a county. See F. S . 336. 025 (1) (a) .
The second tax is a 1 to 5 cents levy on every net gallon of motor
fuel sold in a county. See F.S. 336. 025 (1) (b) . Diesel fuel is not
subject to this tax. The third tax is referred to as the Ninth-
Cent Fuel Tax and was adopted by Palm Beach County Ordinance number
93-18 dated August 17, 1993 .
These local option fuel taxes may be authorized by a majority vote
of a county' s governing board or voter approval in a countywide
referendum. The proceeds collected from these gas taxes are
distributed by the Florida Department of Revenue according to
distribution factors determined at the local level by interlocal
agreement between the county and municipalities within the county' s
boundaries .
The proceeds received from the 1-to-6-cent local option gas tax may
be used only for transportation expenditures (operating and
capital) . The proceeds from the 1-to-5-cent local option gas tax
must be used only for transportation expenditures needed to meet
the requirements of the capital improvement element of the local
government' s comprehensive land-use plan.
The Village participates in two separate and distinct Interlocal
Agreements, one that imposes a six-cent gas tax, and another that
exacts a five-cent gas tax, as follows :
1) In 1986, an Interlocal Agreement was signed, which
imposes a six-cent gas tax. It establishes the
following distribution formula: one-third of the net
proceeds collected by the county from the state is
redistributed to municipalities and the county retains
two-thirds of these proceeds .
2) A second Interlocal Agreement was signed in 1993,
which exacts a five-cent gas tax. It fixes the
following distribution formula: 21% of the net
proceeds collected by the county from the state are
redistributed to municipalities and the county retains
79% of the proceeds .
The third tax (the Ninth-Cent Fuel Tax) is distributed, in whole,
to the County. No agreement exists between the County and any of
the municipalities . The tax levy expires December 31, 2003 . Palm
Beach County has designated the Ninth-Cent Fuel Tax to specifically
fund mass transit and paratransit costs (PalmTran and SpecTran) .
As you can see on the table on page 4, the current gas tax formula
just adequately covers the eligible transportation expenditures
undertaken by the Village on an annual basis.
It is important to note that the Ninth-Cent Fuel Tax is already
designated to public transit services in Palm Beach County. When
this additional gas tax was imposed, the Palm Beach County Board of
County Commissioners greatly expanded the routes and services of
PalmTran. The cost of expanding this service was to be covered by
this gas tax. Apparently, this funding source has proved to be
inadequate to meet the revenue needs of PalmTran in light of their
request for additional municipal funding.
Based upon the foregoing it is evident that the current gas tax
structure just adequately covers the eligible transportation
expenditures of the Village of Tequesta and that Palm Beach County
has unilaterally designated 100% of the Ninth-Cent Fuel Tax
proceeds for the specific benefit of transit services denying the
Village and other municipalities of any benefit from this revenue
source. Additionally, it would not seem feasible to operate a
local transit service within the jurisdiction of the Village of
Tequesta.
Accordingly, it is recommended that the Village of Tequesta
authorize the Mayor to execute the attached letter in response to
the PalmTran letter of June 5th indicating that the Village of
Tequesta is not interested in providing additional funding for
public transit in that the current Local Option Gas Tax just
adequately covers the eligible transportation expenditures incurred
by the Village and in light of 100% of the Ninth-Cent Fuel Tax
being allocated to public transit by Palm Beach County.
Word\Manager\PalmTran Agenda Item to Council 7-13-00
•
The revenue the Village receives from each tax sources is indicated in the table appearing below:
Tax Actual FY 1999 Estimated FY 2000
Local Option Gas Tax Six 113,351 104,560
Cents
Local Option Gas Tax Five 52,322 49,058
Cents
Ninth-Cent Fuel Tax 0 0
TOTAL 165,673 153,618
The following is a list of eligible expenditures that can be funded with these tax revenues in the
Village of Tequesta's FY 2000 operating budget:
1. Street repair and maintenance: $39,350 + $39,350 carry over= $78,700
2. Street Cleaning $1,620
3. Street lighting: $26,800
4. Storm Sewer Maintenance: $14,000
5. Medians: $17,970
Total: $139,090
page 4
v' • 4,G
VILLAGE OF TEQUESTA
�, , Post Office Box 3273 • 250 Tequesta Drive • Suite 300
;�� ` a Tequesta, Florida 33469-0273 • (561) 575-6200
mot' = t Fax: (561) 575-6203
cN cou
July 21, 2000
Mr. Perry J. Maull
Executive Director
PalmTran
3201 Electronics Way
West Palm Beach, Florida 33407
RE: Request for Expression of Interest in Municipal Funding of Transit
Services with Local Option Gas Tax Funds
Dear Mr. Maull:
The following is in response to your letter dated June 5, 2000.
At their July 20, 2000, Village Council Meeting, the Tequesta Village
considered your above referenced request and authorized me to respond
to you on behalf of the Village Council. The Village of Tequesta is
not interested in providing additional funding for public transit for
the following reasons: 1) the current Local Option Gas Taxes just
adequately covers the eligible transportation expenditures incurred by
the Village, and 2) Palm Beach County has already designated 100% of
the Ninth-Cent Fuel Tax to public transit provided by PalmTran in Palm
Beach County.
Should you have any questions, please contact Joann Manganiello, Acting
Village Manager.
Sincerely,
Joseph N. Capretta
Mayor
Village of Tequesta
C: Joann Manganiello, Acting Village Manager
JNC/mmt
Word\Mayor\Maull letter re PalmTran 7-21-00
Recycled Paper
PalmTran
3201 Electronics Way Village of Tequesta
West Palm Beach,FL 33407 June 5, 2000
Phone: (561)841-4200 A000
FAX: (561)841-4290 JUN 0 8
www.palmtran.org
Pam,J.),,,,,,,,R Village Manager's Office
Executive Director
z x Attn. Thomas G. Bradford, Village Manager
Village of Tequesta
357 Tequesta Drive
Palm Beach County
Board of County Tequesta, FL 33469
Commisslonexs
Maude Ford Lee,Chair
Warren H.Newell Dear Mr. Bradford:
Vice Chairman
Karen T.Marcus
Carol Mary McCarty I am writing to municipal managers at the direction of the Board of County
Burt
Aaronson
Commissioners(BCC). At the BCC's budget workshop on May 30,2000 there
was a discussion by the Commissioners regarding municipal participation in
County Administrator funding public transit.The County and all municipalities share in the proceeds
Robert Weisman of the local option gas tax. The local option gas tax can only be used to fund
transportation projects,including public transit.To date with a few exceptions,
such as Lake Worth,Boynton Beach,and Wellington,municipalities have not
used their shares of the local option gas tax to fund public transit. As a result
the BCC has requested me to ask if your municipalities would provide funding
from your share of the local option gas tax to preserve public transit service in
your jurisdiction. There are at least a couple of options that are available to
municipalities to help preserve public transit services.
1. Through an interlocal agreement with the BCC, a municipality may
designate funding from its share of the local option gas tax to fund specific
services in its jurisdiction. This could be for such services as: regular Palm
Tran routes, community circulatory routes, Tri-Rail connectors, or ADA
Complementary Paratransit Services. The village of Wellington already
designates funds for ADA Complementary Paratransit Services for its
residents.
2.A municipality may wish to set up its own community based transit system.
The cities of Lake Worth and Boynton Beach already have their own
community circulatory systems. Through an interlocal agreement between the
BCC and the city/town, Palm Tran can also provide buses and/or financial
assistance to set up community based public transit system. Neighboring
municipalities may want to form partnerships to provide community circulators
An Equal Opportunity-Affirmative Action Employer
that would be mutually beneficial. Community circulators can be operated directly or under a
contract with a private provider. Palm Tran can also provide technical assistance in the planning
and marketing of community circulators.
If you have any interest in pursuing these options or any other options for public transit, please
give me a call at 841-4210. If your municipality is not interested in funding public transit in any
manner, I would appreciate a letter from you so indicating your position on public transit
funding.
Si cerely,
f\i"
Perry J. Maull I/Lk,
cc: Honorable Maude Lee, Chair, and Members of
Palm Beach County Board of County Commissioners
Bob Weisman, County Administrator
Jamie Titcomb, Executive Director
Palm Beach County League of Cities, Inc.
Vince Bonvento, Assistant County Administrator
Bus route changes e but
ridership remains: low
By Jim Turner very stringent requirement for a
Staff Writer minimum ridership of 35 riders
per day."
JUP1 R -- Palm Tran has The single line travels north
altejelLatt northern st from Mangoni #h north-
cutting out Tequesta and adding ern terminus of Tri- ail, which
a park-n-ride to Carlin Park, as has agreed to split the cost of
it continues to try to build pas- the tine,.Tri-Rail agreed to split
sengger;number. the cost as long as ridership
However, area officials; say would top 35 a day, which has
the service is a ways from reach- yet to be, met. The county
iinngsits'projected ridership num- planned last year to eliminate all
"Palm Tran has continued to service north of PGA Boule-
do some surveys and found yard,due to low ridership:
there is very little use of the bus Officials of the bus system are
expected speak at a ch
north of Indiantown Road,'," co to coffee Murtaughambe said,
r
said Louise Murtaugh,president and stalk about ways to promote
of the Jupiter-Tequesta-Juno the service.
Beach Chamber of Commerce, Jupiter officials, Monday,which has been working with y, de-
Palm Tran to increase passenger cided not to share their part of
service in the north county. the local-option gas tax to help
The route change,.took effect fund Palm Tran.Palm Iran had.
June 19. asked the Town Council to help .
The ridership on this route Pay for the service.
hat been poor and is subject to Our ridership may be down,
review, within the-next three to but it's due to the routes we
four months, whether it should have," said Jupiter Councilor
continue," noted Bernie Barbara Henderson,, `•`I still
Schattner, the town's director of think we have to be looking at
engineering and public works, Abacoa, the university and the
, , "This route is currently primar- town center for buses to be ac-
ily funded by Tri-Rail, with a cessing." V