R04-113
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2 I RESOLUTION NO. R 04 - 113
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I A RESOLUTION OF THE CITY COMMISSION OF THE
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5 CITY OF BOYNTON BEACH, FLORIDA,
6 , AUTHORIZING AND DIRECTING EXECUTION OF
7 THE FIRST AMENDMENT AND SECOND
8 AMENDMENT TO THE GAS TAX INTERLOCAL
9 AGREEMENT BETWEEN THE CITY OF BOYNTON
10 BEACH AND PALM BEACH COUNTY, FLORIDA,
11 AND PROVIDING AN EFFECTIVE DATE.
12
13 WHEREAS, the City of Boynton Beach and Palm Beach County previously
14 ntered into an Interlocal Gas Tax Agreement, dated April 18, 1995; and
15 WHEREAS, Palm Beach County League of Cities has negotiated changes to the
16 terlocal Agreement between its member cities and Palm Beach County which provides
17 or the distribution formula of gas tax; and
18 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
19 F THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
20 Section 1. Each Whereas clause set forth above is true and correct and
21 corporated herein by this reference.
22 Section 2. The City Manager is hereby authorized to execute the First
23 endment and Second Amendment to the Interlocal Agreement between the City of
24 oynton Beach and Palm Beach County, which Amendments are attached hereto and
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26 I Section 3. That this Resolution shall become effective immediately upon
27 assage.
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~\CA\RESO\AgreementS\lnterlocaIS\Amendments 1&2 Gas Tax Interlocal Agreement.doc
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1 I! PASSED AND ADOPTED this ~ day of July, 2004.
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:\CA\RESO\Agreements\lnterlocals\Amendments 1&2 Gas Tax Interlocal Agreement.doc
VI.-CONSENT AGENDA
ITEM C.2.
CITY OF BOYNTON BEACI
AGENDA ITEM REQUEST FOklVl
Requested City Commission Date Final Fonn Must be Turned Requested City Commission Date Final Fonn Must be Turned
Meeting Dates in to City Clerk's Office Meeting Dates in to City Clerk's Office
o April 6, 2004 March 15,2004 (Noon.) o June 1,2004 May 17,2004 (Noon)
o Apri120,2004 AprilS, 2004 (Noon) o June 15,2004 May 31, 2004 (Noon) n
C) n-i
o May 4, 2004 o July 6, 2004 z- =ï-<
April 19, 2004 (Noon) June 14,2004 (Noon) C- -<0
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o May 18, 2004 [8J July 20, 2004 r-- l)-"
May 3, 2004 (Noon) July 5, 2004 (Noon) , 'CO
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0 Administrative 0 Legal ::r a
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NATURE OF 0 Announcement 0 New Business .. -.,m
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AGENDA ITEM 0 City Manager's Report 0 Presentation - g:x>
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[8J Consent Agenda 0 Public Hearing ::I:
0 Code compliancelLegal Settlements 0 Unfinished Business
RECOMMENDATION: Approve resolution supporting Amendment #1 and Amendment #2 to the Inter-local Gas Tax
allocation agreement with Palm Beach County.
EXPLANATION: For the past two years, the Palm Beach County League of Cities has been negotiating changes to the
inter-local agreement between its member cities and Palm Beach County that provides for the distribution formula of gas tax.
There are two agreements, each of which address the two distinct legislated gasoline taxes on users. Each tax was created
independently of the other and the formula for each tax is somewhat different. The distribution formula of the taxes is
extremely complex and is not a subject ofthis Amendment. Rather, this Amendment is prepared to address concerns raised
about the distribution of gas taxes in the event that new cities are incorporated. Taxes allocated to the new cities will be taken
ftom both the City and County shares of the current allocation. Boynton Beach staff sits on the League Transportation
Committee and was intimately involved in this initiative. In staff's opinion, the Amendment addresses concerns about
incorporation of new cities and should be approved.
PROGRAM IMPACT:
No current impact.
FISCAL IMP ACT:
Potential for minor reduction in gas tax allocated to the City of Boynton Beach in the future if new cites are incorporated.
ALA TERNA TIVES:
None ¡¿ . D ~ame
~artme~ S;goato..
Engineering and Public Works
Department Name City Attorney / Finance / Human Resources
S:\BULLETIN\FORMS\AGENDA ITEM REQUEST FORM.DOC
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AMENDMENT #1 TO INTERLOCAL AGREEMENT
TIllS AMENDMENT #1 to the Interlocal Agreement dated May, 1995, by and between Palm
Beach, a political subdivision of the State of Florida, hereinafter referred to as the "COUNTY" and
City of Boynton Beach , a municipal corporation located in Palm Beach
County, organized and existing in accordance with the laws of the State of Florida, hereinafter
referred to as the "MUNICIPAUTY", is made and entered into this 20 day of
July ,2004 ("Amendment #1").
WITNESSETH:
WHEREAS, Section 336.025(1)(a), Florida Statutes, authorizes a one (1), two (2), three (3),
four (4), five (5), and/or six (6) cent local option gas tax ("the Tax") to be levied upon the sale of
every gallon of motor fuel and special fuel within the COUNTY; and
WHEREAS, the COUNTY and various MUNICIPALITIES entered into an Interlocal
Agreement in May, 1995, ("lnterlocal Agreement") to provide for the distribution formula for
dividing the proceeds of the tax among the COUNTY and all eligible municipalities within the
COUNTY; and
WHEREAS, the creation of a new municipality (the Village ofWe11ington) in Palm Beach
County negatively impacted the existing eligible municipalities, with no impact on the COUNTY, in
terms of this distribution formula; and
WHEREAS, the dissolution of an existing municipality (the Town of Golfview) in Palm
Beach County positively impacted, although in a minute way, the existing eligible municipalities,
with no impact on the COUNfY, in terms of this distribution formula; and
WHEREAS, the COUNTY and the MUNICIPALITY wish to amend the Interlocal
Agreement to provide for an equitable sharing of the impact of either the future creation of a new
municipality or the future dissolution of a municipality in Palm Beach County; and
WHEREAS, representatives of the COUNTY and the various municipalities, utilizing the
Palm Beach County League of Cities, Inc. (Successor to the Palm Beach County Municipal League
- 1 -
Inc.), have met and negotiated mutually acceptable terms and conditions for this Amendment #1
which are set forth herein; and
WHEREAS, this Amendment #1 will allow for more predictable financial planning for these
proceeds by the MUNICIPALITY and the COUNTY; and
WHEREAS, the Florida Legislature, under advisement from the Palm Beach County
Legislative Delegation, is the governmental entity which lawfully creates new municipalities and
under one method is similarly involved in dissolving a municipal corporation; and
WHEREAS, the COUNTY and the MUNICIPALITY, in conjunction with the Palm Beach
County League of Cities, Inc., intends that Palm Beach County Legislative Delegation and the
Florida Legislature (and Governor if deemed necessary) be made aware of this Amendment #1 and
appropriately incorporate its provisions in any related future legislation.
NOW. THEREFORE. in consideration of the premises and the mutual covenants herein
contained and for such other good and valuable consideration. the receipt of which the parties hereby
expressly acknowledge, the parties hereto covenant and agree to amend the terms and conditions of
the Interlocal Agreement as follows:
Section 1: Section 3. of the Interlocal Agreement shall be amended by the addition of
new subsections "C" "D" and "E" which shall hereafter read as follows:
3A. (1bis subsection shall remain in full force and effect as set forth in the
Interlocal Agreement)
3B. (This subsection shall remain in fun force and effect as set forth in the
Interlocal Agreement)
3C. In the event a new municipality is incorporated in Palm Beach County. its
share of the six (6) cent gas tax shall be provided from the shares fonnerly allocated
to the county and the collective municipalities as set forth below.
1. In the first full fiscal year foHowing incorporation, the new
municipality will receive a sum based solely on its population as opposed to
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the usual distribution fonnula of lane miles and population as set forth in
Section 4. of the Interlocal Agreement. Said sum shall be determined by
multiplying the population of the new municipality times the municipal
per capita distribution amount from tbe most recently available fIScal
year and shall be funded from the county's and colledive municipalities'
shares in accordance with the same percentages due to the county and
tbe coUective municipalities as set forth in Section 3A above or any
amendment thereto (i.e. currently sixty-six and two thirds percent (662/3%)
from the county's share and thirty-three and one third percent (331/3%) from
the collective municipalities' share; see Attachment 1 attached hereto which
shows an example of the calculations for a hypothetical new municipality
with a population of 40,000).
a. The combined county and coUective municipalities'
contributions shall equal one hundred percent (100%) of the new
municipality's share.
b. Section 4 below shall continue to apply as the distribution
formula for the remaining municipalities after their contribution to the new
municipality's amount as set forth in Section 3Cl above.
2. In the subsequent fiscal years after the first full fiscal year following
incorporation of the new municipality:
a. The percentage allocated to the county as set forth in Section
3A above or any current amendment thereto, shall be amended by reducing it
in an amount that reflects the county's contribution to the new municipality's
amount as set forth in Section 3CI, above.
b. Likewise, the percentage allocated to the collective
municipalities, including the new municipality, as set forth in Section 3A
above or any current amendment thereto, shall be amended by increasing it in
an amount that reflects the county's contribution to the new municipality's
amount as set forth in Section 3C I above.
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c. Section 4 below shan apply to the new municipality in aU
annual distributions in the years after the first fun fiscal year following
incorporation of the new municipality.
3D. In the event an existing municipality in Palm Beach County is dissolved, the
fonner municipality's share of the six (6) cent gas tax shall be distributed to the
county and to the remaining collective municipalities by applying in reverse the
process set forth in Section 3C, above.
3E. In the event of proposed legislation which would either create or dissolve a
municipa1ity in Palm Beach County, the county and tbe subject municipality agree
that the Palm Beach County Legislative Delegation and the Florida Legislature (and
Governor, if deemed necessary) be made aware of this Amendment #1 and
appropriately incorporate its provisions into such proposed legislation. The subject
municipality may accomplish this by supporting the Palm Beach County League of
Cities, Inc., as the organization that is in place to convey municipal consensus on
legislative matters.
Section 2: This Amendment #1 shall be attached to the Interlocal Agreement and shall
become a part thereof. An other Sections of the current Interlocal Agreement shall remain in full
force and effect as set forth in that Agreement and there shall be no changes to that Agreement with
the exception of those items specifically set forth in this Amendment #l.
Section 3: This Amendment #1 to the Interlocal Agreement shall take effect only upon
execution both by the COUNTY and those municipalities representing a majority of the population
of the incorporated areas of the COUNTY. In the event that either the COUNfY fails to execute this
Amendment #1 or iñ the event that those municipalities representing a majority of the population of
the incorporated areas of the COUNTY fail to execute this Amendment #1, then this Amendment #1
shall be null and void and the parties hereto shan have no further rights or responsibilities hereunder.
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IN WITNESS WHEREOF, the parties hereto have set their hands and seals in the day set
forth above.
ATTEST: (NAME OF MUNICIP AUTY)
~
By: ~·:;:t µ r
t7 Mayor
(SEAL)
ATTEST: P AIM BEACH COUNTY, FLORIDA BY
ITS BOARD OF COMMISSIONERS
By: By:
County Clerk Chair
(SEAL)
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Ro'l-1l3
AMENDMENT #2 TO INTERLOCAL AGREEMENT
TIllS AMENDMENT #2 to the Interlocal Agreement dated August, 1993 and amended in
May, 1995, by and between PaJm Beach, a political subdivision ofthe State of Florida, hereinafter
referred to as the "COUNTY" and City of Boynton Beach , a municipal
corporation located in Palm Beach County, organized and existing in accordance with the laws of the
State of Florida, hereinafter referred to as the "MUNICIPALITY", is made and entered into this
20 day of July ,2004 ("Amendment #2").
WITNESSETH:
WHEREAS, Section 336.025(1)(b), Florida Statutes, authorizes a one (1), two (2), three (3),
four (4), and/or five (5) cent local option gas tax ("the Tax") to be levied upon the sale of every
gallon of motor fuel and special fuel within the COUNTY; and
WHEREAS, the COUNTY and various MUNICIPALITIES entered into an Interlocal
Agreement in August of 1993 which was amended by the parties in May, 1995, ("Interlocal
Agreement") to provide for the distribution formula for dividing the proceeds of the tax among the
COUNTY and all eligible municipalities within the COUNTY; and
WHEREAS, the creation of a new municipality (the VilJage of WeJ1ington) in Palm Beach
County negatively impacted the existing eligible municipalities, with no impact on the COUNTY, in
terms of this distribution formula; and
WHEREAS, the dissolution of an existing municipality (the Town of Golfview) in Palm
Beach County positively impacted, although in a minute way, the existing eligible municipaJities,
with no impact on the COUNTY, in terms of this distribution formula; and
WHEREAS, the COUNTY and the MUNICIPALITY wish to amend the InterJocal
Agreement to provide for an equitable sharing of the impact of either the future creation of a new
municipality or the future dissolution of a municipality in Palm Beach County; and
WHEREAS, representatives of the COUNTY and the various municipalities, utilizing the
Palm Beach County League of Cities, Inc. (Successor to the Palm Beach County Municipal League
- 1 -
Inc.), have met and negotiated mutualJy acceptable tenns and conditions for this Amendment #2
which are set forth herein; and
WHEREAS, this Amendment #2 will alJow for more predictable financial planning for these
proceeds by the MUNICIPAUTY and the COUNTY; and
WHEREAS, the FJorida Legislature, under advisement from the Palm Beach County
Legislative Delegation, is the governmental entity which lawfulJy creates new municipalities and
under one method is similarly involved in dissolving a municipal corporation; and
WHEREAS, the COUNTY and the MUNICIPALITY, in conjunction with the Palm Beach
County League of Cities, Inc., intends that Palm Beach County Legislative Delegation and the
Florida Legislature (and Governor if deemed necessary) be made aware of this Amendment #2 and
appropriately incorporate its provisions in any related future legislation.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained and for such other good and valuable consideration, the receipt of which the parties hereby
expressly acknowledge, the parties hereto covenant and agree to amend the terms and conditions of
the Interlocal Agreement as foUows:
Section 1: Section 2. of the Interlocal Agreement shall be amended by the addition of
new subsections "C". "D". and "E". which shalJ hereafter read as folJows:
. .
2A. (This subsection shan remain in fun force and effect as set forth in the
InterJocal Agreement)
2B. (This subsection shalJ remain in fun force and effect as set forth in the
InterJocaJ Agreement)
2C. In the event a new municipality is incorporated in Palm Beach County, its
share of the tax colJected pursuant to the ordinance referenced in the Agreement shall
be provided from the shares fonnerJy allocated to the county and the coUective
municipalities as set forth below.
1. In the first full fiscal year folJowing incorporation, the new
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municipality will receive a sum based solely on its population as opposed to
the usual distribution formula of lane miles and population as set forth in
Section 3. of the Interlocal Agreement. Said sum shall be determined by
multiplying the population of the new municipality times the municipal
per capita distribution amount from the most recently available fiscal
year and shall be funded from the county's and collective municipalities'
shares in accordance with the same percentages due to the county and
the collective municipalities as set forth in Section 2A above or any
amendment thereto (i.e. currently seventy-nine percent (79%) from the
county's share and twenty-one percent (21%) from the collective
municipalities' share; see Attachment 1 attached hereto which shows an
example of the calculations for a hypothetical new municipality with a
population of 40,000).
a. The combined county and collective municipalities'
contributions shall equal one hundred percent (100%) of the new
municipality's share.
b. Section 3. below shaH continue to apply as the distribution
formula for the remaining municipalities after their contribution to the new
municipality's amount as set forth in Section 2CI above.
2. In the subsequent fiscal years after the first full fiscal year following
incorporation of the new municipality:
a. The percentage allocated to the county as set forth in Section
2A above or any current amendment thereto, shall be amended by reducing it
in an amount that reflects the county's contribution to the new municipality's
amount as set forth in Section 2CI, above.
b. Likewise, the percentage allocated to the collective
municipalities, including the new municipality, as set forth in Section 2A
above or any current amendment thereto, shall be amended by increasing it in
an amount that reflects the county's contribution to the new municipality's
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amount as set forth in Section 2Cl above.
c. Section 3. below shall apply to the new municipality in all
annual distributions in the years after the first fuB fiscal year foJJowing
incorporation of the new municipality.
2D. In the event an existing municipality in Palm Beach County is dissolved, the
former municipality's share of the gas tax shall be distributed to the county and to the
remaining coJJective municipalities by applying in reverse the process set forth in
Section 2C, above.
2E. In the event of proposed legislation which would either create or dissolve a
municipality in Palm Beach County, the county and the subject municipality agree
that the Palm Beach County Legislative Delegation and the Florida Legislature (and
Governor, if deemed necessary) be made aware of this Amendment #2 and
appropriately incorporate its provisions into such proposed legislation. The subject
municipality may accomplish this by supporting the Palm Beach County League of
Cities, Inc., as the organization that is in place to convey municipal consensus on
legislative matters.
Section 2: This Amendment #2 shall be attached to the Interlocal Agreement and shall
become a part thereof. AJJ other Sections of the current InterIocal Agreement shall remain in full
force and effect as set forth in that Agreement and there shall be no changes to that Agreement with
the exception of those items specifically set forth in this Amendment #2.
Section 3: This Amendment #2 to the Interlocal Agreement shall take effect only upon
execution both by the COUNTY and those municipalities representing a majority of the population
of the incorporated areas of the COUNTY. In the event that either the COUNTY fails to execute this
Amendment #2 or in the event that those municipalities representing a majority of the population of
the incorporated areas of the COUNTY fail to execute this Amendment #2, then this Amendment #2
shall be null and void and the parties hereto shall have no further rights or responsibilities hereunder.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals in the day set
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forth above.
ATTEST: (NAME OF MUNICIPALITY)
By: BY:~~
(SEAL)
ATTEST: PALM BEACH COUNTY, FLORIDA BY
ITS BOARD OF COMMISSIONERS
By: By:
County Clerk Chair
(SEAL)
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Palm Beach County JUL 0 2 2004
iJ LEAGUE of CITIES, Inc. PUBLIC WORKS DEPT. j...Qp \. .
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Memo \Lß
To: All Palm Beach County Municipalities t/(}-~1
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From: Jamie Titcomb, Executive Director
Date: June 25, 2004
Re: Proposed Amendments to the Gas Tax Interlocal Agreements
Enclosed are copies of proposed Amendments 1 and 2 to the Gas Tax lnterlocal Agreements, as
drafted by the League and county attorneys and staff. These amendments to the interlocal
agreements set forth the formula for an equitable distribution of gas tax revenues among the
County and all Palm Beach County municipalities in the event of an incorporation of a new
municipality or the dissolution of an existing municipality.
We urge you to add this item to your next available agenda for adoption. rfyou have any
questions, please contact our office at 355-4484.
(Attachments)
Tel. (561) 355-4484 . Fax (561) 355-6545
jtitcomb@co.palm-beach.fl.us . www.1eagueofcities.org
Mail: P.O.Box 1989, Governmental Center, West Palm Beach, Florida 33402
Office: 301 North Olive Avenue. Suite 1002.17, West Palm Beach, Florida 33401 I