TO: Mayor and Commissioners
THROUGH: Terrence R. Moore, ICMA-CM
FROM: Missie Barletto, Public Works Director
DATE: February 20, 2024
Title
APPROVAL OF RESOLUTION NO. 57-24 EXPRESSING SUPPORT FOR THE EXTENSION AND CONTINUATION OF THE PALM BEACH COUNTY ONE-CENT SALES INFRASTRUCTURE SURTAX TO FUND LOCAL INFRASTRUCTURE PROJECTS THROUGH DECEMBER 31, 2036
Body
Recommended Action:.
Recommendation
Motion to approve Resolution No. 57-24 expressing support for the extension and continuation of the Palm Beach County One-Cent Sales Infrastructure Surtax to fund local infrastructure projects through December 31, 2036.
Body
Background:
In May 2016, the City of Delray Beach (City) Commission approved an Interlocal Agreement with Palm Beach County, the School Board of Palm Beach County and other municipalities within Palm Beach County pertaining to the shared distribution and use of a one-cent local government infrastructure surtax. Imposition of the surtax was approved by referendum by Palm Beach County voters in November 2016, and County Ordinance No. 2016-032 was subsequently adopted. Collection of the surtax began on January 1, 2017.
Projects that are eligible must meet the conditions outlined by Florida and by the language approved in the ballot.
Per Florida Statutes, Section 212.055(2), the local government infrastructure surtax may be used for a number of activities, including to finance, plan and construct infrastructure. For the purposes of the statute, “infrastructure” is considered any of the following:
1. Any fixed capital expenditure or fixed capital outlay associated with the construction, reconstruction, or improvement of public facilities that have a life expectancy of 5 or more years, any related land acquisition, land improvement, design, and engineering costs, and all other professional and related costs required to bring the public facilities into service. For this purpose, the term "public facilities" means facilities as defined in s. 163.3164(39), s. 163.3221(13), or s. 189.012(5), and includes facilities that are necessary to carry out governmental purposes, including, but not limited to, fire stations, general governmental office buildings, and animal shelters, regardless of whether the facilities are owned by the local taxing authority or another governmental entity.
2. A fire department vehicle, emergency medical services vehicle, sheriff’s office vehicle, police department vehicle, or any other vehicle, and the equipment necessary to outfit the vehicle for its official use or equipment that has a life expectancy of at least 5 years.
3. Any expenditure for the construction, lease, maintenance, or provision of utilities or security for those court facilities as defined in s. 29.008.
The one-cent local government surtax was approved by Palm Beach County voters on the November 8, 2016, ballot. The ballot outlined the following conditions:
• Equipment, construct and repair roads, bridges, signals, streetlights, sidewalks, parks, drainage, shoreline and wastewater infrastructure, recreational and governmental facilities.
• Valid January 1, 2017, through December 31, 2026.
The infrastructure surtax fund supports the City’s Capital Improvement Projects by providing funding for eligible projects. Since January 1, 2017, the City has received $34,917,491.67 in funding from its share of the one-cent sales tax. The City’s Public Works Department works with the Palm Beach County League of Cities annually to update the City’s active and completed project reports as well as project funding requests.
This resolution provides the City’s support for asking the voters of Palm Beach County to extend the current one-cent infrastructure sales surtax for infrastructure projects through and until December 31, 2036. If approved, this resolution will be provided to the appropriate county officials, as well as the school district, and the Palm Beach County League of Cities.
City Attorney Review:
N/A
Funding Source/Financial Impact:
If approved, extending the one-cent infrastructure sales surtax would provide additional funding to support future City infrastructure projects through and until December 31, 2036.
Timing of Request:
Timely approval is requested to provide the resolution to appropriate county officials, as well as the school district and the Palm Beach County League of Cities.