TO: Board of County Commissioners
THROUGH: John A. Titkanich, Jr., County Administrator
THROUGH: Nancy A. Bunt, Assistant County Administrator
FROM: Addie Javed, P.E., Public Works Director
DATE: April 29, 2025
SUBJECT: Local Option Gas Tax Distribution Percentages
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BACKGROUND
The County’s six cent Local Option Gas Tax program was adopted in 1986 with the County sharing the revenue by interlocal agreements with the five municipalities within the County using the following mutually agreed upon formula below.
“The percentage of total revenue allocated to each eligible entity equals one-third of the entity’s percentage of total equivalent lane miles of road plus one-third of the entity’s percentage of transportation expenditures over the previous five years plus one-third of the entity’s total percentage of population residing in the area based upon the most recent estimate from the Florida Bureau of Economic and Business Research.”
In 1995 County staff met with representatives of all five municipalities to discuss extending the program, and on June 6,1996 the Local Option Gas Tax agreement was extended for the next 30 years. It terminates on August 31, 2026.
ANALYSIS
Annually the Local Option Gas Tax Distribution Chart is updated and presented to the Board of County Commissioners and the five municipalities in May to approve a revenue distribution formula for the Local Option Gas Tax. The approved distribution formula is then submitted to the Department of Revenue by the deadline of July 1st.
As required by Chapter 209 of the Indian River County Code, the Board of County Commissioners conducts a Public Hearing every two years in May to approve a revenue distribution formula for the Local Option Gas Tax. This tax revenue is shared with the five municipalities based upon the agreed upon formula. The last Public Hearing was May 21, 2024.
BUDGETARY IMPACT
The County and the five municipalities will share the Local Option Gas Tax revenue generated per the approved 2025/2026 distribution chart. These revenues will be deposited into the County's Secondary Roads fund, account number 109031-312410. For FY 24/25 the amount budgeted is $3,695,125.
PREVIOUS BOARD ACTIONS
Six cent Local Option Gas Tax program adopted in 1986
Approval of the Local Option Gas Tax agreements June 6, 1996
Approval of the Local Option Gas Tax Distribution Chart annually and a Public Hearing every other year.
POTENTIAL FUTURE BOARD ACTIONS
A Public Hearing to be conducted by the Board of County Commissioners in May 2026, per Chapter 209 of the Indian River County Code.
Review and adoption of new interlocal agreements between Indian River County and the five municipalities relating to the distribution formula for the Local Option Gas Tax, prior to the termination of the current agreements on August 31, 2026.
STRATEGIC PLAN ALIGNMENT
Fiscal Responsibility and Transparency:
Aligning distributions with asset management plans and ensuring effective stewardship of taxpayer resources.
OTHER PLAN ALIGNMENT
Support Mobility and Access Goals
Tie distribution to supporting equitable transportation access across all regions (urban, suburban, rural) of the county.
STAFF RECOMMENDATION
Recommended Action
Staff recommends approval of the 2025/2026 revenue distribution percentages and submitting the approved Local Option Gas Tax distribution percentages to the Department of Revenue by the deadline date of July 1, 2025.