The URL can be used to link to this page

Home My WebLink AboutDocumentation_Regular_Tab 15_03/10/2016 �� CORBETT W1-[1TE , , DAVIS �N�� ASHTON, �n. ATTORNEYS AT LAW KEITH W. DAVIS' JENNIFER G. ASH"CON JOHN K. "JACK" RICE JOHN COf�BETT+ *E3oarACerfirre�l iu Cit�, Coiuity m�d i.ocn! Goz�ernurent Lnrn I'RELA J. 4VI-[ITE+ **AICP, LEED AP ERIN L. DEADY, P.A. + +O(Con�is�l ERIN L. DEADY" AN4[TY BARNARD MENIORANDUNI To: Mayor and Council � Cc: Village Manager Couzza`� Fr: Village Attorney Davis , Da: March 1, 2016 � �,� Re: Local government infrastructure surtax To follow up the Council discussion at the February 29, 2016 Council Workshop, I offer the following regarding the infrastructure surtax sought which Palm Beach County desires to implement. i. Section 212.055(2), Floricla Statutes, permits the imposition of a local government infra- structure surtax in the amount of either '/� cent or one cent. The tax levy process is com- menced either: a. by an ordinance of the county commission; or b. by uniform resolutions passed municipalities representing a majority of the coun- ty's population. Upon either of the above occurring, the question of the surtax levy must be paced before the electors of the county as a referendum question. Only upon approval by a majority of the electors vating in the referendum shall the surtax become effective. ?. The local governrnent infrastructure surtax referendum must be placed on the ballot alongside a statement which includes a brief general description of the projects to be funded by the surtax (this summary is limited to 75 words — meaning that a comprehen- sive list of municipal and county projects could not be included). 3. If the local government infrastructure surtax question is passed by the electors voting in the referendum, the proceeds of the surtax will be distributed to the county and munici- palities via either: a. a method prescribed through an interlocal agreement between the county and the municipalities representin� a majority of the county's municipal population; or 7nz�nn.CVVL7A-l�gnl.con� 1111 H�polti,ro Road, Suite 207 Lm�trr��n, Floridn 33462 TELEPHONE: (�G1) 586-7116 FAX: (567) 586-9611 March 1, 201b Men:orandum — Local government infrastructure surt�r b. the method set forth in in section 218.62, Florida Stc�t�ates (generally, the 60/44 split). _ 4. Upon agreement of the county and the municipalities representing a majority of the coun- ty's municipal population, the county school distriet may be included as a participant and recipient of surtaJC proceeds. 5. Proceeds of the local government infrastructure surtax may be expended as follows: a. To finanee, plan and construct infrastracctzare {as defined below); b. To acquire land for public recreation, conservation, or protection of natural re- sources; c. To provide loans, grants, or rebates tn residential or commercial property owners who make energy efficiency improvements to their residential or commercial property, if a local government ordinance authorizing such a loan, grant, or rebate is appzaved by referendum; d. To finance the closure of county-owned or municipally owned solid waste land- fills; e. To retire or service indebtedness incurred for bonds issued before July l, 1987, far infrastructure purposes, and for bonds subsequently issued to refund such bonds; f. To deposit up to fifteen percent of the surtax proceeds in a county trust fund for the purpose of funding economic development projects having a general public purpose of improving local economies, including operational cas#s and incentives related to economic development (this type af allacation must be initially indicat- ed in the ballot statement); or g. To pledge such proceeds for the purpose of servicing new bond indebtedness in- curred pursuant to law. h, NOTE: Proceeds from the iocal government infrastructure surtax may NOT be used for operational expenses. 6. Infrastructure is defined in pertinent part, to mean: a. Any fixed eapital expenditure ar fixed capital outiay associated with the construc- tion, reconstructzon, or improvement of public facilities that have a life expectan- cy of five or more years and any related land acquisition, land improvement, de- sign, and engineering costs; b. A fire department vehicle, an emergency medical serviee vehicle, a police de- partment vehicle, or any other vehicle along with necessary equipment for its of- ficial use that has a life expectancy of at ieast five years; c. Any fixed capital expenditure or capital outlay associated with the improvement of private facilities that have a life expectancy af five or more years and used by a local government as a public emergency shelter or a staging area for emergency response equipment during an emergency, provided that the private facilities will be offered a public emergency shelter or staging area for emergency at no cost to the local government for a minimum of ten years; or d. Any land acquisition for residentiai housing projects for affordable housing. z March 1, 2016 Memorundum — Lacal government infrastructure surtax 7. As presented to the Palm Beach County League of Cities on February 24, 2016, Palm Beach County is proposing a local government infrastructure surta�c with the fallowing general components: a. One eent total surtax; b, 46.5% to the schoai district; c. 28.5% to the county d. 18.5°/a ta the municipalities e. 6.5% to the cultural council. Generally, this can be laaked at as the school district getting %z cent, with a 60-40 split of the ather %a cent going ta the county and municipalities respectively. Then, the school district wauld give up 3.5°l0 of its share, the county would give up 3% of its share and the municipalities would give up 3% of their share to be re-directed to the cultural coun- ci2. 8. The Palm Beach County League of Cities Board of Directors voted to not appose the caunty's proposal. This was not an affirmative endorsement; nor was it a rejection of the proposal. 9. As mentioned above, if the county adopts an ordinance, or municipalities representing a majority of the county's population adopt uniform resolutions establishing the above sur- tax proposal, then this will proceed to a referendum for approval ar rejection by the elec- tors of Palm Beach County. 10. The Village Council has taken a position in opposition to the irnpositzon of any surtax whatsoever. The Council has had further discussions opposing the distributian of any surtax proceeds to the cultural council should the surtax proceed to referendum. As men- tioned above, the ballot summary for any proposed surtax would have to explain the amount of the surtax as well as the praposed distribution methadology. 11. In order ta prevent the surtax from proceeding at all, both the county commission as well as municipal councilslcommissions representing a rnajority of the county's population wouid have to be convinced to not proceed. 12. In the event that the surtax proceeds to referendum, municipal councits/commissions representing a majority of the county's municipal populatian would have to be canvinced to not inciude the cultural council as a recipient of surta�c proceeds, This decision would have to be made prior to the ballat summary deadtine. 13. It is my understanding that Paim Beach County is working toward adoption of an ordi- nance (first and second reading� in May, 201 b, as well as interlocal agreements with mu- nicipalities to capture the required population numbers, in order to have the referendum on the above proposal placed on the November, 2016 baliot. 3