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Agenda 09/12/2023 Item #16F 7 (Authorize staff to notify the FDOR of its intent to terminate the collection of the Local Option Infrastructure One-cent Sales Surtax)09/12/2023 EXECUTIVE SUMMARY Recommendation to authorize staff to notify the Florida Department of Revenue of its intent to terminate the collection of the Local Option Infrastructure One-cent Sales Surtax as required by Florida Statute Sec. 212.054(7), to ensure that Surtax collections will not continue past December 31, 2023, and direct the County Attorney to advertise an Ordinance repealing Ordinances No. 2018-21 and 2019-46, which imposed a County-wide Infrastructure Surtax and established the Infrastructure Surtax Citizen Oversight Committee with the exception that the Infrastructure Surtax Citizen Oversight Committee shall continue in the manner set forth in the Ordinance or until the Board deems otherwise. ____________________________________________________________________________________ OBJECTIVE: To authorize staff to notify the Florida Department of Revenue of its intent to terminate the collection of the Local Option Infrastructure One-cent Sales Surtax and to direct the County Attorney to advertise an Ordinance repealing Ordinances No. 2018-21 and 2019-46, which imposed the County-wide Infrastructure Surtax and the Infrastructure Surtax Citizen Oversight Committee. CONSIDERATIONS: On April 24, 2018, the Board of County Commissioners adopted Ordinance No. 2018-21, authorizing a one percent local government infrastructure surtax and creating the Infrastructure Surtax Citizen Oversight Committee, consisting of seven members which was subsequently amended by Ordinance No. 2019-46. Pursuant to the Sunset provision of Ordinance 2018-21, as amended, in all events, this ordinance shall be in effect only through December 31, 2025. Alternatively, this ordinance shall sunset on December 31 of any year during the term of this ordinance in the event that the total ag gregate distributions of surtax proceeds equal or exceed the amount of $490 million at any time during that calendar year, in which event the Board shall take necessary action to repeal this ordinance and notify the Florida Department of revenue prior to the applicable deadline so that the surtax will not continue for the following year. As of July 31, 2023, the cumulative surtax distributions have reached $496,190,756.34 triggering the requirement to sunset this Ordinance on December 31, 2023. The levy of a one-cent sales tax was originally estimated to generate approximately $490 million, with approximately $420 million anticipated to be received by the County. The aggregate collection figure of $490 million was based on the state sales tax estimate of $70 million per year for seven years. Distribution to the municipalities is done directly through the DOR based on the Sales Tax formulas provided in s. 218.62 F.S. Staff is further seeking direction to advertise the attached proposed Ordinance repealing Ordinance Nos. 2018-21 and 2019-46, to end surtax collections on December 31, 2023. Once advertised, staff will return to the Board at the next available meeting for approval of an Ordinance repealing Ordinance Nos. 2018-21 and 2019-46, with the exception that the Infrastructure Surtax Citizen Oversight Committee shall continue in the manner set forth in the Ordinance or until the Board deems otherwise. FISCAL IMPACT: Gross collection for all local government entities through July 31, 2023, total $496.1 million, anticipated gross collections through December 31, 2023, are estimated to be $541.9 million as depicted in the table below. Relative to the County's share of Surtax, this is estimated to result in aggregate County Surtax collections of $491.2 million on a program budget of $420 million. Local Government YTD Collection as of Jul 2023 Estimated Collection as of Dec 2023 Collier County 449,518,657.47 491,295,251.00 Cities Share (Combined) 46,672,098.87 50,624,917.00 Total 496,190,756.34 541,920,168.00 16.F.7 Packet Pg. 1113 09/12/2023 The approximate cost to advertise the proposed Ordinance is $400. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. - CMG RECOMMENDATION: To authorize staff to notify the Florida Department of Revenue of its intent to terminate the collection of the Local Option Infrastructure One-cent Sales Surtax as required by Florida Statute Sec. 212.054(7), to ensure that Surtax collections will not continue past December 31, 2023, and direct the County Attorney to advertise an Ordinance repealing Ordinances No. 2018-21 and 2019-46, which imposed a County-wide Infrastructure Surtax and established the Infrastructure Surtax Citizen Oversight Committee with the exception that the Infrastructure Surtax Citizen Oversight Committee shall continue in the manner set forth in the Ordinance or until the Board deems otherwise. Prepared by: Ed Finn, Deputy County Manager and Christopher Johnson, Director of Corporate Financial and Management Services. ATTACHMENT(S) 1. Ordinance (PDF) 16.F.7 Packet Pg. 1114 09/12/2023 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.7 Doc ID: 26537 Item Summary: Recommendation to authorize staff to notify the Florida Department of Revenue of its intent to terminate the collection of the Local Option Infrastructure One-cent Sales Surtax as required by Florida Statute Sec. 212.054(7), to ensure that Surtax collections will not continue past December 31, 2023, and direct the County Attorney to advertise an Ordinance repealing Ordinances No. 2018-21 and 2019-46, which imposed a County-wide Infrastructure Surtax and established the Infrastructure Surtax Citizen Oversight Committee with the exception that the Infrastructure Surtax Citizen Oversight Committee shall continue in the manner set forth in the Ordinance or until the Board deems otherwise. Meeting Date: 09/12/2023 Prepared by: Title: – Office of Management and Budget Name: Debra Windsor 09/05/2023 2:23 PM Submitted by: Title: Accountant, Senior – Office of Management and Budget Name: Christopher Johnson 09/05/2023 2:23 PM Approved By: Review: Community & Human Services Maggie Lopez Additional Reviewer Completed 09/05/2023 2:40 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 09/05/2023 2:51 PM County Attorney's Office Colleen Greene Level 2 Attorney Review Completed 09/06/2023 10:38 AM Office of Management and Budget Christopher Johnson Additional Reviewer Completed 09/06/2023 12:31 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/06/2023 1:05 PM County Manager's Office Ed Finn Level 4 County Manager Review Completed 09/06/2023 3:32 PM Board of County Commissioners Geoffrey Willig Meeting Pending 09/12/2023 9:00 AM 16.F.7 Packet Pg. 1115 16.F.7.a Packet Pg. 1116 Attachment: Ordinance (26537 : Intent to terminate Local Option Infrastructure One-cent Sales Surtax) 16.F.7.a Packet Pg. 1117 Attachment: Ordinance (26537 : Intent to terminate Local Option Infrastructure One-cent Sales Surtax) 16.F.7.a Packet Pg. 1118 Attachment: Ordinance (26537 : Intent to terminate Local Option Infrastructure One-cent Sales Surtax)