CC 03/10/2014 Minutes - Laserfiche WebLink

Home Browse Search

CASSELBERRY CITY COMMISSION Minutes of March 10, 2014 — Regular Meeting Page 5 of 11 B. Resolution 14-2582 — Interlocal Agreement with Seminole County for the Third Generation Infrastructure Sales Tax "A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CASSELBERRY, FLORIDA, APPROVING AND AUTHORIZING THE EXECUTION OF AN INTERLOCAL AGREEMENT WITH SEMINOLE COUNTY FOR THE THIRD GENERATION INFRASTRUCTURE SALES TAX; PROVIDING FOR CONFLICTS, SEVERABILITY, AND EFFECTIVE DATE." Introduction: Resolution 14-2582 approves the Interlocal Agreement with Seminole County for the Third Generation Infrastructure Sales Tax, and authorizes the Mayor to execute said agreement on behalf of the City. Budget Impact: There is no impact to the City's budget at this time. Funding of the sales tax is contingent upon Seminole County voter approval in a special election to be held May 20, 2014. If approved, the sales tax would provide the City with a reliable source of funding to help complete its Neighborhood Improvement Program and other transportation projects over the next ten years. Recommendation: The City Manager and the Public Works Director recommended approval of Resolution 14-2582. Discussion: Discussion ensued regarding the proposed interlocal agreement and the sales tax. At the request of Vice Mayor Hufford, Mr. Newlon clarified that the City did not budget a surplus, but had a balanced budget and was doing the best it could. lie noted that Gvcr the past i'our or five years the City had reduced its workforce by approximately 50 employees or roughly 20%; the City's tax base was approximately 2/3 of what it was previously; sales tax revenues were about 3/ of what they were at its peak; and the communication services tax was in a freefall due to the economy and the way people are now buying their services. He explained that approval of Resolution 14-2582 did not mean that the Commission was endorsing the sales tax, but simply spelled out what the City's share would be if the referendum is passed by the voters. He further explained that when the first generation tax was implemented in the 90's the Casselberry City Commission had declined to participate, which had resulted in the City being unable to make improvements to its infrastructure during that 10 -year period. He concluded by stating that the projects which were listed in the proposed interlocal agreement were beyond the reach of what the City could do with normal revenues and it would be an opportunity to enhance the City's infrastructure; however, at the end of the day, it would be up to the voters of Seminole County and not what was decided at this meeting. Additional brief discussion ensued regarding the detrimental effect on the City's infrastructure that was a result of the decision to decline participation in the first generation sales tax; the improvements which could be made from the projected revenues from the third generation sales tax; the possibility of a reduction in millage rates as a result of the sales tax implementation which would shift some of the burden from the property owners; and the need for maintenance and improvements to the City's infrastructure. MOTION: Vice Mayor Hufford moved to approve Resolution 14-2582, as amended. Motion was seconded by Commissioner Solomon. Motion carried unanimously by voice vote 5-0.