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Resolution Adopting List of Specific Projects to be Funded With Proceeds From One-Cent Local Government Infrastructure Surtax
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BRIEF OVERVIEW
Should the Board adopt the proposed ordinance setting a referendum to levy a one-cent infrastructure surtax, the attached, proposed resolution lists the specific projects to be funded by the County with its share of the surtax' proceeds. If approved, the tax would begin collection on January 1, 2025, and continue through December 31, 2054.
The Local Government Infrastructure Surtax Tax is a revenue source that is authorized by Fla. Stat. § 212.055(2) and effective upon an affirmative vote by referendum of a majority of a county’s voters. The revenues raised from the tax may be used to address a wide variety of infrastructure needs facing local governments, as well as a recent statutorily authorized use to dedicate a portion of the proceeds to economic development.
Pursuant to Fla. Stat. § 212.055(2), the eligible uses of the tax are:
• The financing, planning, and construction of infrastructure; to acquire land for public recreation, conservation, or protection of natural resources, or to finance the closure of solid waste landfills that have been closed or are required to be closed by order of the Department of Environmental Protection. In this context, infrastructure means any capital expenditure associated with reconstruction, construction, or improvement of a public facility that have a life expectancy of five or more years, including land acquisition, land improvement, design and engineering. Public safety vehicles with a life expectancy of 5 or more years are also eligible.
• Providing for the needs of the judiciary, such as the construction, leasing, or maintaining of court facilities.
• Providing for energy conservation and efficiency improvements that reduce consumption through conservation or a more efficient use of electricity, natural gas, propane, or other forms of energy on the property, including, but not limited to, air sealing; installation of insulation; installation of energy-efficient heating, cooling, or ventilation systems; installation of solar panels; building modifications to increase the use of daylight or shade; replacement of windows; installation of energy controls or energy recovery systems; installation of electric vehicle charging equipment; and installation of efficient lighting equipment.
• Providing for other eligible expenditures related to investment in private facilities for emergency shelter/staging area for emergency response and residential housing units.
• If a county has a population greater than 75,000 and its real property has a taxable value less than 60% of the just value, a county can use the proceeds for the operation and maintenance of parks and recreation facilities established with the proceeds of the surtax throughout the duration of the surtax levy.
• Additionally, the statute allows for up to 15% of the sales tax to be deposited into a trust fund for the purpose of funding economic development projects having a general public purpose of improving local economies, including the funding of operational costs and incentives related to economic development. Proceeds from the surtax may not be used for the operational expenses of the infrastructure improvements.
FINANCIAL IMPACT
Funding essential projects needed via a new revenue source will take the burden off of existing funding sources to cover those costs.
LEGAL NOTE
The Board has the authority to act on this matter pursuant to Chapter 125 and Section 212.055(2), Florida Statutes.
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RECOMMENDATION
It is recommended that the Board adopt and authorize the Chairperson’s signature on the attached resolution adopting a list of specific projects to be funded with the proceeds of the one-cent local government infrastructure surtax for community investment.