Inter-local 3* generation 1 cent tax (043023) HONORABLE GRANT MALOY CLERK OF THE CIRCUIT COURT AND COMPTROLLER Bill Carroll, CPA, CFE, CIG, CIGA Inspector General DRAFT FOR MANAGEMENT REVIEW AND DISCUSSIONInter-local 3% generation 1 cent tax (043023) Introduction Executive Summary. History of the Tax Allocation: Audit Objective .. Methodology and Scop Overall Evaluation Areas for Improvement: 1. Public discussion or comment, should be solicited before the plan Is amended to include police vehicles, equipment, and utility vehicles. Recommendation Page 9 2. The Inter-local agreement should require better communication between entities. Recommendation. «Page 12 3. Operational supplies were incorrectly included as Infrastructure expense. Recommendation ..Page 14 4. Revisions to the project list should be submitted to various government partners for . pre-approval prior to amendment. Recommendation ..Page 15 5. Infrastructure Sales Tax Revenue should not be transferred to an Enterprise Fund. Recommendation Page 16 6. Inter-local agreement needs added internal controls. Recommendation 7. There needs to be a formal plan for allocation of surplus funds. Recommendation. 8. Periodic internal audits of the municipalities should be eee Recommendation. Page 1Inter-local 3 generation 1 cent tax (043023) Exhibits for Illustration Purposes: Exhibit A: (Voter Approved Referendum) Exhibit B: 1 Cent Frequently Asked Questions... Exhibit C: (Original Schedule of Projects)... Exhibit D: Consent Agenda Item (July 13, 2020) Exhibit E: Consent Agenda Item (March 13, 2023).. Operational Expenses included as Infrastructure Fund: . Exhibit F: Copy of Operational Expense Worksheet.. Page 2Inter-local 3% generation 1 cent tax (043023) The following Executive Summary provides a high-level synopsis of: 1) why the audit was performed; 2) the audit objectives, and; 3) the results of the audit. Why was the audit performed? The audit was requested by a Seminole County Commissioner as the result of citizen complaints as to the spending by the City of Winter Springs (“CITY”) on Infrastructure projects per the 1. cent sales tax referendum. As a result of this request, the audit was performed to determine if the revenue and expenses associated with the infrastructure (1 cent sales tax allocations) money agreed with the voter approved referendum, Florida Statutes, and, in accordance with the 2014 Inter-local Agreement. What was the objective for the audit? The objective of the audit was to determine compliance with voter approved referendum (1 cent sales tax 3 generation), the Inter-local agreement, and the Florida Statutes. What were the results of the audit? Itis our opinion that the referendum, the Inter-local agreement, and the Florida Statutes are designed as a contractual obligation. Part of this obligation is for the County, the School Board, and the Cities to follow the intent of the referendum. Voters were promised that money would be used on a specific list of road projects. Unlike previous sales tax programs implemented in 1984, 1991, and 2004, this ordinance and Inter-local agreement has no controls to deliver on promises made to the public. A small portion of the funds were not spent in compliance with the law. More internal administrative controls are needed to increase transparency and protect the citizens’ tax dollars. Page 3Inter-local 3% generation 1 cent tax (043023) SEMINOLE COUNTY TEN YEAR SALES TAX TO FUND COUNTYWIDE GENERAL . GOVERNMENT AND PUBLIC EDUCATION INFRASTRUCTURE The Seminole County voters approved the referendum noted below by Special Election on May 20, 2014. “The County, the seven cities in the County and the School Board require revenue for the construction and rehabilitation of roads and transportation facilities; bicycle and pedestrian trails, stormwater facilities; public education facilities; and other infrastructure uses authorized by law. Shall the County be authorized to levy ten (10) year, one cent (1c) per dollar sales surtax on taxable transactions occurring within Seminole County to become effective on January 1, 2015." To support the referendum, Seminole County, the School Board, and the Cities each signed an Inter-local agreement as a plan on how the money would be spent. The CITY proposed a group of projects that included: roadway improvements, new trails, new sidewalks, asphalt resurfacing, bridge replacement and repairs, stormwater water quality, and pipe realigning valued at $49 million. This project list is included as Exhibit C and is included for illustration purposes. The Inter-local agreement, the Florida Statutes, and the Ordinances allow both the County and municipalities to adjust the plan as long as the revisions are in accordance with the Inter-local Agreement, Florida Statute Section 212.055 (2), Seminole County Ordinance No. 2014-8, and the referendum approved by the taxpayers. CITY made two (2) amendments to the original plan. The first amendment was approved by the CITY Commission on July 13, 2020. It revised priorities 7 to include funding for the Bridge Repair/ Retrofit, reduced the budget for residential road construction, and proposed spending an additional $3.5 million on projects related to the CITY'S Water and Sewer Utility. This amendment reallocated funds to include new police vehicles, white fleet vehicles, machinery and equipment, and various other capital needs for CITY facilities. It included purchasing 20 patrol vehicles over 2 years, and approximately 8 to 10 white fleet vehicles and heavy equipment. The second amendment approved on March 13, 2023 required reallocating funds to repair a number of roads had been damaged as a result of Hurricane lan. CITY staff recommended a reallocation of $2,750,000 for these repairs. Both amendments were approved by Commission as Consent Agenda items. Page 4Inter-local 3% generation 1 cent tax (043023) ————————————————————EE————————————————————————— EEE The objective of the audit is to determine compliance with voter approved referendum (1 cent sales tax -3° generation), the Interlocal agreement, and the Florida Statutes. ‘The scope of the audit included all of the revenue and expenses included in the Infrastructure Fund of the 3 generation 1 cent sales tax. Our audit procedures included: ‘+ The voter approved referendum held on May 20, 201: ‘+The Inter-local agreement between Seminole County, Schoo! Board, and the 7 cities; * Florida Statute Section 212.054 regarding limitations, administration, and collection; ‘+ The revenue supporting documentation received by the Florida Department of Revenue; * Alldisbursements from the Infrastructure Fund for compliance with Inter-local agreement, Florida Statutes, and Voter approved referendum; The reporting responsibilities of the County and the CITY and the obligations to the citizens; and, * Other procedures considered necessary under the circumstances. PagesInter-local 3" generation 1 cent tax (043023) Itis our opinion that the referendum, the Inter-local agreement, and the Florida Statutes are a contractual obligation with the citizens of Seminole County. Part of this obligation is for the County, the School Board, and the Cities to follow the intent of the referendum. Although we agree that the CITY is in compliance with the requirement of having a public meeting, and the CITY is in compliance with Florida Statutes, the CITY Commission, in our opinion, did not follow the intent of the referendum. It is disturbing to note that Seminole County, prior to the referendum being voted on, sent promotional material to the public with specific examples of what was considered Infrastructure. : Nowhere in the promotional material were items like fleet vehicles, CITY Water and Sewer Projects, police vehicles, radios or fire extinguishers mentioned. ‘As the Inter-local agreement serves as a formal partnership among government leaders, more needs to be done to ensure adequate communication and transparency. It deserves noting that Seminole County, as a whole, experienced significant road closure as a result of Hurricane lan. Some of the planned projects may have been delayed as a result. The CITY leaders have made some adjustments to address the road damage and plans are to ask FEMA for reimbursement. We have noted 8 areas of improvement which are presented for management consideration. ‘Some require consent of the Seminole County Board of County Commissioners, School Board and . the 7 cities. Page 6Inter-local 3% generation 1 cent tax (043023) 1. Public discussion or comment, should be solicited before the plan is amended to include police vehicles, equipment, and utility vehicles. On July 13, 2020, CITY staff presented to the CITY Commission a revised project list. This list was presented as a consent agenda item and there was no discussion or public comment at the meeting. Consent agenda items are usually for normal routine approval that do not require discussion or public input. Within the proposed agenda item, CITY staff referenced Section 3(c) of the Inter-local . Agreement as the guideline that allowed them to add or delete projects from their initial list of projects and sets forth the manner in which the CITY'S Exhibit C projects may be deleted or added: Per section 3(c) of the agreement: 3(c) A project listed in Exhibit C may be deleted from these exhibits or a project may be added to the Exhibit C only after approval by the government authority controlling the 7 project following a noticed public meeting The CITY also makes the case that they are following the guidelines in Florida Statutes Section 212.54 1(d) which states in part: 1. “For the purposes of this paragraph, the term “infrastructure” means: Any fixed capital expenditure . or fixed capital outlay associated with the construction, reconstruction, or improvement of public facilities that have a life expectancy of 5 or more years and any related land acquisition, land improvement, design, and engineering costs. A fire department vehicle, an emergency medical service vehicle, a sheriff's office vehicle, a police department vehicle, or any other vehicle, and the equipment necessary to outfit the vehicle for its ‘ official use or equipment that has a life expectancy of at least 5 years. a. Any expenditure for the construction, lease, or maintenance of, or provision of utilities or security for, facilities, as defined in s. 29.008. Page7Inter-local 3% generation 1 cent tax (043023) City staff asked the Commission to allow them to add the following vehicles and equipment. Patrol Vehicles $950,000.00 White Fleet Vehicles $250,000.00 : Police Equipment $85,000.00 Heavy Equipment $880,000.00 . $2,1.65,000.00 The total project cost remained at the initial $19 million dollars. Some of the original projects had to be realigned to account for the adjustment for the vehicles noted above. Some of the money set aside for the road projects were reallocated to pay for replenishment of the fleet. We fully understand and appreciate that the CITY is in compliance with Florida Statutes and the amendment qualified as an official public hearing by including the amendment at a public CITY Commission meeting. However, Seminole County, the Cities, and the School Board, in an effort to promote the 1 cent sales tax to the citizens, prepared a public document referred to as “One-cent Sales Tax for ‘ County Infrastructure Frequently Asked Questions.” This is included as an attachment to this, report. (See Attachment D) Here is some of the wording within the public document: “The following items will govern expenditures of the extra penny: the Florida Statutes; the ordinance passed by the County on February 41, 2014; the language that will appear on the ballot; and the interlocal agreements between the county, the seven cities, and the school board. Furthermore, Seminole County has a track record with the One-Cent Sales ‘Tax that reflects its on-going commitment to follow through with promised improveme! In 1991 and again in 2014, Seminole County collected over $950 million through the extra Penny, funding 860 new capital projects, including approximately 170 miles of new and reconstructed roadways, 75 miles of sidewalks, 30 intersection improvement, mast arm signal installations, roadway drainage projects, and county-wide fiber optic installations” ‘We do not question the need for the CITY to update their current fleet. However, we do question the staff presenting this to the CITY Commission as a Consent Agenda Item without advance notice for a separate public meeting for active discussion by the Commission and Seminole County residents as to the merit of the plan. Page 8Inter-local 3 generation 1 cent tax (043023) ‘ Formally asking the voters for their approval to add a tax for a list of certain projects is similar to 7 having a contract that needs to be honored. In our opinion, money spent on behalf of the ‘taxpayers should be spent according to the plan that was originally approved. Recommendation 1.1n the future, because reallocation of tax payer money can be controversial, it is recommended 7 that CITY staff take appropriate action to notify citizens of a public hearing so that all parties can discuss revised plans. 2. Update the Inter-local agreement to spell out the specific procedures for notifying citizens and County leaders of all proposed changes. County leaders should be provided at a minimum 30 days to review, comment, and appeal which was required in the 2 generation Sales Tax : Referendums. 2. The Inter-local agreement requires better communication between entities. There are references and requirements referenced within the Inter-local agreement that suggests complete and constant communication within the County, School Board, and 7 cities. For discussion purposes, we are highlighting some references that deserve noting. Per the 2014 3:1 Generation Inter-local agreement Section 2 (in part): Distribution of Proceeds. a) _Itis the intent of the parties to improve the infrastructure of the Seminole County Public Schools and other public-school systems and other public infrastructure with County and municipalities... ‘The parties recognize the need and agree imunical sis to consistently communicate on_an on-going basis with regard to the use of surtax revenue and as to the infrastructure needs and timing as set forth in Exhibit A,B, C. Page 9Inter-local 3° generation 1 cent tax (043023) ——E—————————————————————————————————————— See Section 3 Project Lists There are 3 Project lists identified in the Interlocal Agreement: Project List A includes the School Board Projects; Project list B is County managed road projects; and Project List C includes CITY and County Road Projects. As noted below, the internal management controls over the Project B listings are much more enhanced than the other project listings in A and C. More specifically: a) Aproject listed in Exhibit A may be deleted from this exhibit or a project may be added to Exhibit A only after approval by the governmental entity controlling the project following a noticed public meeting. i ) A project listed in Exhibit B may be deleted from this exhibit or a project may be added to Exhibit B only after approval by the governmental unit controlling following a noticed public hearing. The governmental unit shall notit all other Parties to this Agreement no less than thirty (30) days before the public meeting. The other governmental entities that have received notice of the proposed addition or deletion shall have the right to propose comments to the local government entity proposing the change, and any such comments shall be duly considered. thin ten 10) business dave entina parties may fl of that action vi Seminole County Board of County Commissioners. After reviewing the a original comments, recommendations, and actions with the governmental entity proposing the change, COUNTY shall approve or {eject the proposed revisions at a public meeting. ©) Aproject listed in Exhibit C may be deleted from this exhibit or a project may be added to Exhibit A only after approval by the governmental entity controlling the project following a noticed public meeting. The requirement to communicate to other governmental entities is not included in the k ‘for projects listed in Exhibit A or Exhibit C. The parties signing the agreement allowed the School 1 Board and cities to have the ability to add or delete without notifying the other entities for proper review, and comment prior to submittal to the CITY Commission. . The requirement for consistently communicating with County and CITY is also mentioned in Section 2. Page 10Inter-local 3 generation 1 cent tax (043023) Section 2. Distribution of Proceeds. 2 (a) states in part: “The parties recognize the need and agree to consistently communicate on an ongoing basis with regard to the use of surtax revenues an as to the infrastructure project needs and timing as set forth in Exhibits A, B, and C." The Cities, County, and School Board are required to each provide annual report. This reporting requirement is discussed in Section 3. Below is the language that is included in Section 3: Section 3. Project Lists 3 (e) states in part: “The MUNICIPALITIES and the SCHOOL BOARD shall each provide annual reports to COUNTY as soon as practicable after the close of their respective fiscal years, detailing the projects listed in Exhibits hereto that have either been initiated and ongoing or which have been completed during the immediately preceding fiscal year along with the amounts of Net Revenues applied thereto to include a brief description of the specific project cost items for such Net Revenues were applied. COUNTY shall provide an annual report to the MUNICIPALITIES and the SCHOOL BOARD as soon as practicable after the close of its fiscal year, detailing the projects listed in the Exhibits hereto that have either initiated and ongoing or ‘which have been completed during the immediately preceding fiscal year along with the amounts of Net Revenues applied thereto to include a brief description of the specific project cost items for which such Net Revenues were applied.” When we asked for the annual reports for the CITY and County, the reports were not readily available and some were missing. For compliance with the intent of this Inter-local agreement there needs to be a well-written procedure to ensure a consistent process. ‘Second generation (2") 1 cent sales tax We reviewed and compared the second generation (2"4) infrastructure program with the 3° generation and we found that the administrative controls for the 2"4 were much more deliberate as all changes and payments for costs incurred were filtered through Seminole County. Also, Section 3 of the 2004 2" generation states the following: Project Lists: . ‘A governmental entity proposing changes to the plan had a responsibility to notify the COUNTY'S Manager and all other governmental entities that are parties to this, Page 11Inter-local 3" generation 1 cent tax (043023) Agreement no less than thirty (30) days before the public hearing. The other governmental entities that have received notice of the proposed addition or deletions shall have the right to propose comments to the local government entity proposing the change, and any such comments shall be duly considered. Within ten (10) business days following the action of the governmental entity proposing the change, any of the commenting parties may file an appeal of that action with the Seminole County Board of County Commissioners. After reviewing the original comments, recommendations and action with the governmental entity proposing the change, the COUNTY shall approve or reject the proposed revision at a public meeting. Section 4 (2° Infrastructure Tax Program) also states the following: (b) Any alterations, amendments, or waivers of the provisions of this agreement other than those matters addressed in Section 3 of this agreement, shall be valid only when expressed in writing and duly signed by the parties. Recommendation 1. Going forward, Seminole County, the School Board and the Cities should develop a written policy and procedure to promote consistent communication and demonstrate transparency. 2. The Inter-local agreement should be updated and approved by local leaders to include enhanced internal controls and more management oversight similar to the internal controls in the 2n generation sales tax Inter-local agreement. . 3. Operational supplies were included as Infrastructure expense. Florida Statute Section 212.55(2)(d)2 defines infrastructure to mean any fixed capital expenditures or fixed capital costs associated with construction, reconstruction, or improvement of public facilities which have a life expectancy of 5 or more years and any land acquisition, land : improvement, design, and engineering costs related thereto. Operational expenditures are costs incurred to keep the business operational. This would include maintenance and maintenance costs that are routine and occur periodically. Florida Statute Section 212.054(2\(d) states in part: “The proceeds and any interest may not be used for operational expenses of infrastructure The following is a list of expenses that do not meet the legal requirement for the use of the Infrastructure sales revenue. Page 12Inter-local 3° generation 1 cent tax (043023) __ Date 4/19/2022 3/20/2021 3/23/2021 27/2021 3/28/2021 3/29/2021 3/29/2021 2/2/2021 2/5/2021, 2/5/2021 1/29/2021 12/29/2021 3/21/2021 2/4/2021 2/3/2021 2/6/2021 4/12/202: 4/12/2021 4/12/2021 9/30/2021 8/13/2021 2/11/2021 2/23/2021 2/23/2021 6/18/2021 6/18/2021 6/18/2021 6/18/2021 4/30/2021 Description Costs Small Tools $149.00 Repairs and Maint. Supplies $193.62 Tools for repairs at CH $51.91 Extension Cords $16.91 Supplies for Ranchland $634.37 Supplies for UT/PN Adm Bd $176.55 Supplies for Ranchland $375. Supplies for Fleet Shop $150.13, Supplies for Rai Extension Cords ‘Small Tools Shuffle Board Project Supplies to repair rocks Supplies to repair rocks 2 Fire Ne See $52.24 pair/main ssfor Utility $119.94 Parts for Kubota Excavator $829.00 Finish Cut Mower $2,250.00 Misc. Parts Couplings $21.96 R640R41 Series Kubota Excav. Part $613.00 Mirrors for Restroom Repair Main $403.17 Janitorial Supplies $246.00 Lawn supplies for Garden $567.02 Parts for Sidewalk repair Sueeeseoe Small Tools & Parts $398.55 Repair -mx6000hste Transmission $32,228.36 Infrastructure Costs would include any fixed capital expenditure or fixed capital outlay associated . with the construction, reconstruction, or improvement of public facilities that have a life Page 13,Inter-local 3* generation 1 cent tax (043023) ————————————— oo ————————————EEE expectancy of 5 or more years and any related land acquisition, land improvement, design, and engineering costs. Recommendation 1. Going forward, operational costs should not be expensed in the Infrastructure Fund. . 2. Written procedures should be developed to ensure proper recording. 3. Expenses made on operational costs should be reclassified and paid from CITY General Fund. 4. Revisions to the project list should be submitted to various government partners for pre-approval prior to amendment. At the July 13, 2020 CITY Commission meeting some revisions were submitted to the Schedule C Infrastructure Project list. CITY Staff, with consultants, identified some critical initiatives relating to the CITY'S water, waste water and reclaimed systems that needed top priority. Making changes is allowed per Section 2(a) of the Inter-local Agreement which states, "It is the intent of the parties to improve the infrastructure of the Seminole . County public school system and other public infrastructure within COUNTY and its MUNICIPALITIES so as to provide acceptable levels of services to the residents thereof. Infrastructure shall mean those capital expenditures defined in Section 212.055(2)(d), Florida Statutes (2013) and more particularly described in Exhibits 4, B, and C to this Agreement and incorporated herein by reference." Section 3(c) of the Agreement sets forth the manner in which the CITY'S Exhibit C projects may be deleted or added: 3(c) A project listed in Exhibit C may be deleted from these exhibits or a project ‘may be added to the Exhibit C only after approval by the government authority controlling the project following a noticed public meeting the project list that was initially set forth for the City of Winter Springs can be found on pdf pages 40-41 of the interlocal Agreement. The proposed revisions are enumerated in Attachment 3 and in the Proposed column of sub-groups that Page 14Inter-local 3° generation 1 cent tax (043023) follow. Ifapproved, Attachment 3 of this agenda would become Exhibit C of the interlocal agreement. CITY staff submitted an agenda item seeking to revise the Exhibit C project list in order to better reflect the CITY'S revised infrastructure priorities. The revised total remained unchanged from the original $19M value. Although the CITY adhered to the Inter-local Agreement regarding having a government authority approve changes to the projects, the revisions do not appear to be within the spirit of the referendum and Inter-local agreement approved by the taxpayers. By not following through with : promised commitments, the CITY is not serving the citizens in accordance with public policy. Recommendation 4. Reevaluate original plans to use Infrastructure funds on Road Projects and submit a revis plan to the citizens for their review and comments. 2. Update Inter-local Agreement with similar Internal administrative controls identified in 2" generation 1 cent tax as previously noted on page 11 of this report. 5, Infrastructure Sales Tax Revenue should not be transferred to Enterprise Fund. The Water and Sewer Utility Fund is an enterprise fund. The fund is used to account for the operations of the CITY'S water and wastewater systems, which are financed in a manner similar toa business enterprise. The costs of providing services to the general public on an on-going basis come from user charges. For definition purposes, an enterprise fund is a self-supporting : government fund. The CITY transferred a certain amount of money from the Infrastructure Fund into the Water and ‘Sewer fund for the purpose of improving the Infrastructure of the Water and Sewer facilities. Initially there was $2 million transfer, and, on June 20" through Consent Agenda Item the CITY staff recommended an additional $3.5 million be spent for the purpose of improving the CITY'S Water and Sewer Utility. Under the guidelines of Florida Statutes (FS 212.054), a municipality may use discretionary tax money to support infrastructure projects if the projects are in compliance with the voter referendum. The Inter-local agreement with the government partners (Seminole County, School Board, and 7 Cities) requires a public meeting and approval from the CITY'S governing body. Page 15Inter-local 3° generation 1 cent tax (043023) LLL LLLLL—————— z= EEEE&E&E&Z&£=[yyr Allowing the proceeds from a county-wide sales tax to be used on a municipal water and sewer utility means Seminole County taxpayers are subsiding costs of local utility users. Utility customers are benefiting from lower utility bills, as the costs of repairs are being paid from the Infrastructure Fund. Nowhere in the Seminole County promotional materials did it say that the sales tax is to be used in the CITY Water and Sewer Utility enterprise. The 3% generation sales tax revenue was specifically earmarked for Roads and Public Facilities, * Money transferred from the Infrastructure Fund to the Water and Sewer Utility Fund should be considered a loan and lule should be establish Having funds properly allocated ensures proper accounting treatment and ensures money earmarked for a specific purpose is honored. Recommendation Sales tax money allocated to Water and Sewer Fund should be repaid to the Infrastructure Fund based on a repayment schedule and related interest charges should be included with the repayment. 6. Inter-local agreement needs added internal controls. The Interlocal agreement was drafted in March 2014. At that time, the government leaders provided a preliminary estimate of the planned projects for the next 10 years. Since this time there has been new technology advances and management has more tools to assess and . prioritize projects. Because the money belongs to the citizens of Seminole County, the Inter-local agreement needs to address management's responsibilities with how the management team is going to manage and report on-going projects on a regular basis. Astandard management report needs to be added to the Inter-local agreement to ensure each government office is consistent with all of the reporting requirements. The current Inter-local agreement is very open-ended and municipalities have an open 10-year window to schedule projects. From an audit perspective, the Inter-local agreement should provide a requirement for each government partner to submit an annual plan to all of the partners for discussion, comment, : appeal, and approval. This will ensure that the team is supporting the intent of the voter- approved referendum. Page 16Inter-local 3° generation 1 cent tax (043023) The Inter-local agreement needs to address in writing what the process is to address residual revenue collected by the municipality after the expiration of the fund agreement. Government leaders as partners should have a say in the overall surplus as an official business practice. Moreover, there needs to be an official audit clause added to ensure that government partners support the objective of continuing to be transparent and consistent with daily operations. Recommendation Representatives from each government agency should develop an updated Inter-local agreement ‘that includes: a) a standard management report to ensure each government office is consistent with all of the reporting requirements; b) a requirement to submit an annual plan to all of the partners for discussion, comment, . appeal, and approval; ) written policy and procedure for what to do with residual revenue; and, ) an official audit clause. 7. There needs to be a formal plan for the allocation of surplus funds. The 3 generation of the tax assessment is scheduled to expire on January 1, 2025 without a formal plan for how Seminole County and its municipal partners will allocate the remaining surplus funds. . By not having a plan, the government enttties have an opportunity to have basically a slush fund. To ensure that citizens’ money is safeguarded and utilized in the best interest of the taxpayers, the partners need to communicate and establish a written policy, plan, and procedures for allocation of surplus funds. ‘One option for consideration might be provide some form of property tax relief. It deserves noting that in 1984, the Seminole County Commission placed on the ballot a requirement that excess proceeds would provide property tax relief which read; “Any excess proceeds would provide property tax relief.” Page 17Inter-local 3 generation 1 cent tax (043023) Another option would be to have CITY and County leaders make a proposal and solicit public input as to other capital related projects that would benefit the community. Having a formal plan and accounting of surplus funds enables government leaders to adequately address the proper use for future taxpayer consideration of new discretionary taxes. Recommendation Government leaders should develop a written plan for allocation of surplus funds. County and CITY staff should make recommendations as to an equitable use of residual funds. 8. Periodic internal audits of the municipalities should be scheduled. Based on conditions noted from the audit, and as a safeguard to the citizens of Seminole County, periodic audits should be performed of the Cities and School Board to ensure compliance with the commitments made to the citizens of Seminole County. The Office of Inspector General should initiate periodic audits to support compliance with referendums, inter-local agreement, Florida Statutes, and generally accepted accounting principles. By conducting periodic audits of the local government partners ensures on going compliance and complete transparency to the citizens. Recommendation The Office of Inspector General should prepare for approval a list of planned audits of the municipalities for Clerk of Court and Comptroller approval. Page 18Inter-local 3 generation 1 cent tax (043023) Exhibits for Illustration Purposes: Exhibit A: (Voter Approved Referendum). Exhibit B: 1 Cent Frequently Asked Questions... Exhibit C: (Original Schedule of Projects)..... Exhibit D: Consent Agenda Item (July 13, 2020)... Exhibit E: Consent Agenda Item (March 13, 2023)... Operational Expenses included as Infrastructure Fund: Exhibit F: Copy of Operational Expense Worksheet... F Page 19Inter-local 3° generation 1 cent tax (043023) EXHIBIT A Vote Approved ReferendumEXHIBIT A OFFICIAL SPECIAL REFERENDUM ELECTION BALLOT ‘SEMINOLE COUNTY, FLORIDA MAY 20, 2014 TO VOTE, COMPLETELY FILL IN THE OVAL @® NEXT TO YOUR CHOICE. Use only a blue or black pen, or the marking device provided in the voting booth. you make a mistake, don't hesitate to ask for a new ballot. if you erase or make other marks, your vote may not count. ‘SEMINOLE COUNTY TEN YEAR SALES TAX TO FUND COUNTYWIDE GENERAL GOVERNMENT AND PUBLIC EDUCATION INFRASTRUCTURE. ‘The County, the seven cities in the County and the School Board require revenue for the construction and rehabilitation of roads and transportation facilities; bicycle and pedestrian trails; stormwater facilities; public education faciities; and other infrastructure uses authorized by law. Shall the County be authorized to levy a ten (10) year, one cent (1¢) per dollar sales surtax on taxable transactions ‘occurring within Seminole County to become effective on January 1, 20157 (OFOR THE ONE CENT SALES TAX (AGAINST THE ONE CENT SALES TAX FRONT Curd I SEQH 1Inter-local 3° generation £ cent tax (043023) Exhibit B 1 Cent Frequently Asked Questions Page 21.Exhibit B One-Cent Sales Tax for County Infrastructure Frequently Asked Questions SEMINOLE COUNTY FLORIDA'S NATURAL CHOICE ‘What is the One-Cent Sales Tax for County Infrastructure? If approved, the One-Cent Sales Tax will provide ‘an additional penny of sales tax to be used for improving infrastructure across Seminole County including: transportation facilities, stormwater systems, educational facilities, and other physical improvements to the infrastructure systems in the county. How much money will the sales tax raise? It is anticipated that the extra penny in sales tax will raise, on average, $63 million a year. A portion of those revenues will be paid by visitors to Seminole County. Comparatively, one mill of property tax in Seminole County generates approximately $23 million annually. ‘This revenue is paid ONLY by Seminole County property owners. Who gets the money? Twenty-five percent (259) of the proceeds will be distributed to the Seminole County School District for capital improvements to the county's schools, and the remaining seventy-five percent (759%) ‘would be split amongst the county and Seminole's seven cities. Is there a specific list of ‘The county, the seven cities, and the school board have identified numerous infrastructure needs that could be funded by the One-Cent Sales Tax for County Infrastructure, The proposed project list may be seen on the county’s website at www. seminolecountyfl.gov/onecent. will be used to fund SunRail operations and the Lynx bus service, Is this true? No. ts the use of proceeds from the One-Cent Sales Tax for the operations of SunRail or the I've heard the extr (Current law prohi Lynx bus system, How can I trust the County, Cities, and School Board to use the sales tax funds as promised and not use the penny revenues as a slush fund? The following items will govern expenditures of the extra penny: the Florida Statutes; the ordinance passed by the County on February 1, 2014; the language that will appear on the ballot; and the interlocal agreements between the county, the seven cities, and the school board. Furthermore, Seminole County has a track record with the One-Cent Sales Tax that reflects its on-going commitment to follow-through with promised improvements. In 1991, and again in 2001, Seminole County voters, approved the imposition of a One-Cent Sales Tax. Between 1991 and 2011, Seminole County collected over $950 million through the extra penny, funding 860 new capital projects, including approximately 170 miles of new and reconstructed roadways, 75 miles of sidewalks, 30 intersection improvements, mast arm signal installations, roadway drainage projects, and county-wide fiber optic installations. Didn't the School Board just raise ‘one mill? Will I still have to pay that additional millage if the sale tax passes? On March nth, the School Board approved the interlocal agreement with The County relative to imposition of the extra penny sales tax and unanimously approved a resolution, committing to reduce the Seminole County Public School millage rate levy if the sales tax referendum passes in May.Doesn't Seminole County already impose an additional penny in sales tax for infrastructure improvements? I seem to remember a similar vote several years ago. There is currently no additional penny in sales tax place. In 1991, and again in 2001, Seminole County electors, by a vote of Gov and 7296, respectively, approved imposition of a One-Cent Sales Tax. In 2012, Seminole County's sales tax rate dropped to 6 cents after the Board of County Commissioners let the One-Cent Sales Tax sunset. At that time, the county had $45 million in reserve revenues from the penny sales tax, and the Board of County Commissioners felt it appropriate to forgo seeking reauthorization of the tax in order to provide its residents an opportunity for tax relief. Seminole County's 6 cents on the dollar sales tax rate is currently the lowest in the region. When is the election? May 20, 2014 When would I have to start paying the extra penny? January 1, 2015. Why a sales tax? The One-Cent Sales Tax for County Infrastructure, unlike property taxes, is not levied against Seminole County residents and businesses only. A portion of the sales tax revenues will be paid by visitors to Seminole County, spreading the cost to construct and maintain the infrastructure to all those who and not just county residents and busi Why now? The extea penny in sales tax is intended to help fund the $45 million a year the county will require ‘over the next decade to continue providing the infrastructure services, including roadways, trails, and drainage facilities, at the level Seminole residents and businesses have experienced in the past. In 2012, Seminole County's sales tax rate dropped to 6 cents after the Board of County Commissioners let the ‘One-Cent Sales Tax sunset. At that time, the county had $45 million in reserve revenues from the penny sales tax, and the Board of County Commissioners felt it appropriate to forgo seeking re-authorization of the tax in order to provide its residents an opportunity for tax relief. It is expected that the county's reserve fund will drop 1084.6 million by the beginning of the next fiscal year, which is far below what would be necessary to fund the identified needs. Why a “Special Election”? As discussed above, the One-Cent Sales Tax has historically been a significant source of revenue for the county, the seven cities, and the school board. Because it has been a major funding source for infrastructure needs, if the One-Cent Sales Tax is not approved, the county, the seven cities, and the school board will have to make decisions regarding the shortfalls in revenues to fund infrastructure improvements and capital maintenance. ‘The county's budget process formally begins in February, and a draft budget is to be submitted to the Board of County Commissioners by the first week in July. More importantly, the school board must adopt its budget by June 30, 2014, Holding the election in May will provide the county, the cities, and the school board with certainty regarding the availability of this significant funding source, and whether or not service cuts will be necessary and/or if additional revenue should be sought from other sources. A vote in November or August would not provide this certainty, and would force the school board into a decision regarding the extra one mill it is authorized to levy without knowing whether it will receive the anticipated $15 million dollars in revenue from the extra penny in sales tax. Any millage is only paid for by Property Owners. What happens if the sales tax is not approved by the voters? The One-Cent Sales Tax has historically been « significant source of revenue for the county, the seven cities, and the school board. The county estimates that $45 million a year will be required over the next decade ($450 million) for the county to continue providing the infrastructure services, including roadways, trails, sidewalks, and drainage facilities, at the level Seminole residents and businesses have come to expect. If the One-Cent Sales Tax for County Infrasteucture is not approved, the county, the seven cities, and the school board will have to make decisions regarding the shortfalls in the revenues to fund infrastructure improvements and capital maintenance. While no specific strategies have been developed to date, without the revenue from the One-Cent Sales Tax, elected officials will have to consider other options which may include service reductions and/or other revenue sources.Infrastructure Sales Tax Recut ane ener Card RMS Eas oe TA eerie) See ce Deca ego CO MCR) 70 Miles of Roadway Constructed East Leke Mary Blvd, Lake Dr, A Transportation Related Projects: ae one nae i Ceol noe se va1991 and 2001 County Share Sales Tax Projects A LeipNem oa Rae Housing $983.00 $11,796.00 Food $754.00 $9,048.00 Child Care $864.00 $10,368.00 ‘Transportation $607.00 $7,284.00 Luxury tax limits $5,000 maximum on a vehicle purchase. Health Care $1504.00 $18,048.00 Other $445.00 $5,340.00 $53.40 Annually / $4.45 Monthly. Federal, State, and $253.00 $3,036.00 Payroll Taxes $5,410.00 $64,920.00 * eae ees Pre ero ee MUN USO. erat (eeFY 2013/14 General Fund Budget by Service Area $186.6 million (Excludes Reserves) (moons tins) | General Government $267 14%One-Cent Sales Tax for County Infrastructure Claim Fact ‘The Orlando Sentinel reported ewice last year that the County Commission would hold a special election For 4 SunRail Train Tax this year, Millions for SunRail fave in thet Current law prohibits the use of County Infrastructure Sales Tax for operations of any kind, including SunRail, ‘Over $630 millon dollars in new taxes will cost each person 2430, expecially if you buy an appliance, building materials, ear cell phone, TV, computer ete, eis not a penny, ‘The penny sales tax is not borne solely by the residents of Seminole County. Tourists, commuters, snd vistors all contribute to sales taxes paid in Seminole County. The true cost of the penny sales tax to individual households is dependent on income snd spending habits. ‘The sngo estimate is based on dividing che total estimated revenue of the sles tax (3631M) over 410 year period, by the current population estimate of Seminole County (434074). This year period and does not take into account future population growth, or the estimate that Spproximately aovs of the sles tax ie paid by non- residents ofthe County. ates for ator Breed on the average housthald income in Seminole County, wilising data from the US Census Bureau and the US Internal Revenue Service, 213 Sales Tax Deduction Caleslator, fone cent sales tax psid annually by a Family of 4 with sn average annual income of #91K is «proximately 5176, o about 815 per month, the amount of an additional Based on the median income for the Orlando Mecropolitan Statistical Ares, using 209 monthly expendicure data from the Economic Policy Institute (EPLorg), the amount of an additional one cent sales tax paid annually in che Orlando segion by 2 family of 4 with 2 median income of $64,920 would be 53.40 ‘nally, or about $445 per month yal sales eax ‘The County average and median cost estimates are based on a family of four and not per person. Estimates do not include major one-time porchases, however the infrastructure sales tax ie limiced eo the first $5,000 of « major purchase making the maximum cost for any single item 450 ‘The School Board just raised our taxes in Novernber by 426 million per year and did noc want this new sales ‘The School Board har never sated chat ie “did not wane thie new sales tax increase,” Additionally, on March ui, the School Board approved che interlace agreement with The County relative to impotition of the exes penny sales rx and unanimously approved = resolution, commiting to reduce the Seminale County Public’ School millage sate levy if the sles ta referendum passes in May.‘One-Cent Sales Tax for County Infrastructure SEMINOLE COUNTY] "RORIKS NATURAL CHOICE Claim Fact ‘We can't afford it~ We have paid nearly « billion dollar in higher sale taxes in Seminale County over ll need anocher 1 years. Yet the politicians say they to years of higher taxes and more of our money. Between 1991 and aout, Seminole County collected lover $950 million through the extea penny, funding lover 860 projects. Additionally, che county utilized these funds co leverage over 5172 million in federal tnd state grant Funds and earned over 585 million in interes. In 20t2, Seminole County's sales tax rate dropped to 6 cents after che Board of County Commissioners let the One-Cent Sales Tax sunset. ‘Ac that time, the county had 45 milli revenues from the penny sles tax, and the BCC. fale ie appropriate to forgo seeking re-authorization of the tax in order to provide ite residents an opportunity for eax relic Ic is expected chat the county's reerve Fund will drop to 44.5 million by the beginning of the next fiscal year, which is far below what would be necessary co fund che indemtified needs. County Politicians watted millions of our dollars and snow want us to pay for theic mistakes, Examples of| hhow they wasted our money: + million on a soccer stadium in Orange County. + sax000 for this special election Millions and millions ate wasted on expensive "gateway" and "streetscapes" (CRA project) + ag to landscape # private restaurant (CRA pees) ‘+ Esch commissioner is pad over #8oj00 per yeat for spare ime job * ‘The Partnership with Orlando City Soccer ‘bring over $6,200,000 in positive impact annually tothe County. ‘+ The county's budget process began in February, and a draft budger is co be submiteed to the BCC by the first week in July. More Importantly, the school boud's budget year begins July et. Holding the election in May. will provide the county, the cities, and the school board with certainty regarding the tvailabilicy of this significant Funding souce, tnd whether or not service cuts will be fecesstry and/or if addtional revenue should bbe sought fom other sourcen, A vote in November or August would not provide this ee snd would force the choal bon decision regarding the extra ome ml tuthorized to levy without knowing whed will receive the anccipsted sis milion dollate in revenue from the excra pena in sales ax. + Investments within the US i792 Community Redevelopment Area are made with funds from the associsted CRA trust fands, which are monies chat may not be spent elzewhere in the county. + The County Commissioner salaries are consistene with the guidelines prescribed in the Florida Seatutes, City tax payers will be taxed twice for stormwater. ‘The county isnot proposing any stormwater projects within the ciOne-Cent Sales Tax for County Infrastructure |SEMINOLE COUNTY | FLORIONS NATURAL CHOICE Claim Fact Homeowners in mainttined HOAs will pay for subdivisions that are not maintained, ‘The One-Cent Sales Tax, unlike property taxes, is not levied agsinst Seminole County residents and businesses only. A portion of the sales tax revenues wil be paid’ by visitors to Seminole County, spreading the cose to construct and maintain the infrastructure to all those who benefit from it, and fot just county residents and businesses, ‘The tax increase is not endorsed by the Seminole County Chamber of Commerce. ‘The Seminole County Chamber of Commerce has not yet taken « portion onthe pending referendum. When asked by Channel 9 news, Chairman Bob Dallari could noc even state whac was in the tax When Channel 9 News posed the question to CChaieman Dallar, the list of proposed projets had not yee been approved by the BCC or Cities. View the listing at www seminolecounty{l. gov/onecent. Stores, offices, daycare centers etc. will pay higher rents passing those costs onto you. ‘The One-Cent Seles Tex, unlike property taxes, ie not levied agrinst Seminole County residents and businesses only. A portion ofthe sales tax revenues “vill be pad by visitors to Seminole County, spreading the cost co construct and maintain the infasteveturetoall those who benefit From it, and not just county residents and businesses, Higher taxes hurt us, our economy and they kail jobs. [Now is not the time co rise caxes, Im recent interviews with the county's Economic Development Division, che business community has consistendly referenced Seminole county's “quality of life” as s deciding factor in choosing to locate and ‘operate within the CountInter-local 3% generation 1 cent tax (043023) Exhibit C (Original Schedule of Projects)EXHIBIT C City of Winter Springs Proposed Scope Preliminary Cost Proposed Project Eeemas Greenway Interchange District | Roadway Improvements $3,500,000 North Vistawila Drive Extension _| New Roadway $750,000 ‘SIR 434 at Vistawila Drive ea eee ie Safety and Capacity Improvements 500,000 GID East West Roadway Corridor | ey Roadway $1,500,000 Improvements Right-of-Way Acquisition Land Acquistion $250,000 SSR 434 Improvements Safety and Cepacity improvements $600,000 Orange Avenue Extension Ree ee eeee ores $1,500,000 5 Northern and Southern Loop Michael Blake Boulevard ere $750,000 Michael Blake Blvd. at SR 434 | New Traffic Signal and Turn $350,000 ‘SR 434 at Tuscora Drive Eastbound Deceleration Lane $250,000 Multi-Use Trail Projects New Trails $600,000 Highlands Tral Connector New Teall $300,000 Town Center Spur New Trail $300,000 Sidewalk Projects New Sidewalks $1,400,000 Winter Springs Bivd Ped Bridge at Howell Creek and Sidewalk eee eee $500,000 Extension ge “Town Center WSHS Sidewalk | Town Center/School Sidewalk Improvements Project $350,000 Village Wak Area Sidewalk eee ak ate New Sidewalks 300,000 Additonal Sidewalk Gap Projects | New Sidewalks on Collector Roads $250,000 baal Asphalt Resurfacing $5,200,000 Colietor Road Winter Springs Boulevard (colecis Head ea $1,500,000 Calector Road Northern Way Cone RO ct $750,000 Collector Road eemens Resurface/Reconstruct $260,000 Collector Road eae Resurface/Reconstruct $200,000 Collector Road Steomd Reed Resurface/Reconstruct $200,000 ak 44 3°61 063Proposed Scope Preliminary Cost Proposed Project eames Collector Road Panama Road ey $175,000 Collector Road Dyson Drive Resurface/Reconstruct $180,000 Collector Road Hayes Road Resurface/Reconstruct $180,000 Collector Road Shore Road Resurface/Reconstruct $150,000 Collector Road Tuscora Drive Colecot Hoe sa $150,000 raed Calero ce Collector Road Orange Avenue ce oelanee $120,000 eta Oe Caeser Road sian a00 Shetand Avon Colecr Road 75000 Collector Road Trotwood Bd Coleen ces aaa $75,000 ‘daiional Subdivision Steet Adctcnal Bute Local Road Resurface/Reconstruct $1,000,000 Bridge Repairs / Retrofits — ou $3,950,000 Winter Springs Blvd at Bear Creek com 00 | (Scour Crit) Bdge Repacement/ Rate Roashay $1,700,000 ‘Shepard Road at Sheoah Creek —ane (Functionally Obsolete) ae Replacement $500,000 ‘Sheoah Blvd at Sheoah Creek (Functionally Obsolete) ene $760,000 Northern Way at Howell Creek - North (Scour Critical Bre Repiacement $1,000,000 ‘Stormwater - Water Quality Guay Pra TMDL Water $1,000,000 Winding Hollow Wetland Wining Hollow Welland Rehydration and Treatment $350,000 Winter Springs and Wedgewood Winter Springs an Storm Inet Filters $100,000 North Orlando Townsite Firation perm Storm Inlet Fiters $75,000 Highlands Pond Improvements _| Retention Pond improvements $476,000 Stormwater —Pipe Relining _| Pipe Relining and Replacement $500,000 Contingency Projects ‘Other Improvements may be done if revenues and actual costs on projects identified above allow To Be Determined Total Preliminary Cost Estimate $19,000,000 any 4 3P6 1064Inter-local 34 generation 1 cent tax (043023) Exhibit D Consent Agenda Item (July 13, 2020)EXHIBIT D CONSENT AGENDA ITEM 302 9 CITY COMMISSION AGENDA | JULY 13, 2020 REGULAR MEETING TITLE 3rd Generation Infrastructure Surtax - Revised Project List SUMMARY On March 10, 2014 the City of Winter Springs entered into an Interlocal Agreement with Seminole County, the School Board of Seminole County and the Municipalities pertaining to the shared distribution and use of the one- cent local government infrastructure surtax (Attachment 1). Exhibit C of that agreement lists the various projects as initially submitted by Winter Springs which totals $19M. Section 2(a) of the Interlocal Agreement states, “Its the intent of the parties to improve the infrastructure of the Seminole County public school system and other public infrastructure within COUNTY and its MUNICIPALITIES so as to provide acceptable levels of services to the residents thereof. Infrastructure shall mean those capital expenditures defined in Section 212.055(2\(d), Florida Statutes (2073) and more particularly described in Exhibits A, 8, and C to this Agreement and incorporated herein by reference.” Attachment 2 of this agenda item presents Florida Statute 212.055(2) in its entirety, In the years that have intervened a voluminous amount of new information has been acquired regarding the City’s infrastructure needs. In particular, a large number of critical initiatives have been identified relative to the City's water, waste water and reclaimed systems. Accordingly, this agenda item seeks to revise the Exhibit C project list in order to better reflect the City’s, revised infrastructure priorities. The revised total remains unchanged from the original $19M value. Section 3(c) of the Agreement sets forth the manner in which the City’s, Exhibit C projects may be deleted or added: 3(0)A project listed in Exhibit C may be deleted from these exhibits or a project may be added to the Exhibit C only after approval by the government authority controlling the project following a noticed public meeting. 315The project list that was initially set forth for the City of Winter Springs can be found on pdf pages 40-41 of the Interlocal Agreement. The proposed revisions are enumerated in Attachment 3 and in the Proposed column of sub- groups that follow. If approved, Attachment 3 of this agenda would become Exhibit C of the Interlocal Agreement. Bridge Repair / Retrofit - A study by Volkert Inc. has informed the decision to revise the bridge priorities. The Northern Way Bridge at the south loop of Howell Creek was identified for replacement in the next few years so that has been programmed with additional funding for future bridge priorities. Original Proposed Bridge Repairs / Retrofits $3,950,000 $2,750,000 Northern Way atHowell — sigge replacement on oe Bridge [Creek (Functionally feolacerment Obsolete) Shepard at Sheoah Creek Bridge (Functionally Obsolete) —_replacement Bridge replacement / raise $1,700,000 $0 roadway Bridge replacement $750,000 $0 $500,000 $0 Winter Springs Blvd at Bear Creek (Scour Critical) Northern Way at Howell $1,000,000 $750,000 Bridge replacement / long-term $0 $2,000,000 maintenance (extend useful life) Residential Road Reconstruction - The original project list specified 15 collector roads for resurfacing many of which are presently in process. The proposed list removes the constraint to adhere to a stale and specified list in favor of other constraining factors such as pavement age, traffic volume, multi-phase scheduling, premature 316structural failure, the effect of emergencies/natural disasters, as well as input from residents. Although the proposed revision would reduce 3 generation resurfacing by $1.8M, it should be noted that $1.1M of 24 generation surtax funds have been earmarked for FY21 street resurfacing/reconstruction. Residential Road Reconstruction Winter Springs Boulevard Northern Way ISheoah Blvd Collector roads - resurface/reconstruct [Tuscora Drive Fisher Road lOrange Avenue Vistawilla Drive Shetland Avenue Local road - Reconstruction _resurface/reconstruct Location driven by Collector/local road - Original $5,200,000 $1,500,000 $750,000 $250,000 $200,000 $200,000 $175,000 $150,000 $150,000 $150,000 $150,000 $135,000 $120,000 $120,000 $75,000 $75,000 $1,000,000 $0 priority resurfacing/reconstruction * Greenway Interchange District - Proposed $3,400,000 Included in bulk total below $3,400,000 The capital list for this surtax was developed in 2013. At that time, there was indication that GID development was imminent. This did not prove to be the case and many years later as we develop the FY2021 budget this $3.5M would be better utilized for the City's utility infrastructure needs. 317Original —_ Proposed Greenway Interchange District $3,500,000 $0 North Vistawilla Drive Extension s.R 434 at Vistawilla _Safety/capacity Drive intersection improvements GID East-West Roadway New roadway Corridor Improvements Right-of Way lAcquisition New roadway $750,000 $0 $500,000 $0 $1,500,000 $0 Land acquisition $250,000 $0 Safety/capacity improvements lWater / Waste Water / Stormwater $1,500,000 $6,870,000 Wetland rehydration ® gss0qqq go treatment Storm inlet filtration devices North Orlando Storm inlet filtration Hownsite devices Highlands Pond Retention pond improvements improvements Pipe relining / replacement WIP 1 design, well 5. so.sen.on rehab/replacement Interconnectivity $0 $250,000 Bypass pumps $0 $320,000 Lift station upgrades $0 $1,500,000 Water line replacement $0 $1,250,000 Sewer piperelining _$0 $1,250,000 ISR 434 Improvements $500,000 $0 $100,000 $0 $75,000 $0 $475,000 $0 Multiple locations $500,000 $0 [Water and Wastewater Plant Improvements Sidewalk Projects / New Roadways ~ The proposal for sidewalks and roadways reduces 3 generation coverage as the originally-listed projects are either underway with 3 generation funds, not a priority or other funding sources have been identified. The Transportation Improvement fund can be utilized for new sidewalks. The plan for an Orange Avenue extension has been completely eliminated and transportation impact fees have been earmarked for the traffic signal at 318Michael Blake Blvd. Original Proposed sidewalk Projects $1,400,000 $475,000 Winter Springs Blvd at Sidewalk & pedestrian Howell Creek bridge $500,000 $0 \Town Center Improvements Sidewalk/Parking lot $350,000 $475,000 Sidewalk improvements Phase 2 Sidewalks on collector roads $300,000 $0 $250,000 $0 $2,850,000 Orange Avenue New roadway at CWP $1,500,000 $0 Extension Michael Blake Northern/Southern Boulevard Loop improvements Michael Blake Blvd / SR Traffic signal & turn 434 lanes SR 434 at Tuscora Drive Eastbound decel lane $250,000 __ $250,000 $750,000 $0 $350,000 $0 Parks & Trails / Public Safety, Building Infrastructure, W&S Utility Again, at the onset of 3 generation two new trails were identified but at this juncture the parks projects below have preeminence. Should interest be regained in the Highlands’ trail connector and Town Center Spur, other sources of funding are presently sufficient. The last category of funds include police patrol vehicles, white fleet vehicles, machinery and equipment and various capital needs for City facilities, The police fleet and the white fleet are aging and the proposed funding would allow for 20 patrol vehicles over two years and approximately 8-10 utility/public works’ trucks. 319Original Proposed Parks — Multi-Use Trail Projects $600,000 $2,100,000 Highlands Trail New trail $300,000 $0 Connector ‘own Center Spur New trail $300,000 $0 CWP trail-head bathroom Central Winds & parking lot (reduced by $0 $600,000 $200K RTP grant) BD Boardwalk $0 $500,000 ‘BD Land acquisition $0 $1,000,000 Public Safety, Building Infrastructure, W&S ete utility Patrol vehicles $0 $950,000 Fleet Replacement White fleet vehicles $0 $250,000 Building rehabilitation, re- city-wide $0 $990,000 purposing, parking Police equipment $0 $85,000 Machinery & Heavy equipment (i.e. Equipment excavator, tractor, vac $0 $880,000 trailer, generators, etc.) RECOMMENDATION Staff recommends the City Commission approve the revised list in Attachment 3 or to amend it as deemed necessary and to authorize the City Manager and City Attorney to prepare and execute any and all applicable documents. 320INTERLOCAL AGREEMENT AMONG SEMINOLE COUNTY, THE SCHOOL BOARD OF SEMINOLE COUNTY AND THE SIGNATORY MUNICIPALITIES PERTAINING TO THE SHARED DISTRIBUTION AND USE OF THE ONE CENT LOCAL GOVERNMENT INFRASTRUCTURE SURTAX THIS INTERLOCAL AGREEMENT, by and between SEMINOLE COUNTY, a political subdivision of the State of Florida, whose address is Seminole County Services Building, 1101 East First Street, Sanford, Florida 32771 (hereafter referred to as “COUNTY”, THE SCHOOL BOARD OF SEMINOLE COUNTY, a school district created by Florida law, whose address is 400 East Lake Mary Boulevard, Sanford, Florida 32773 (hereafter referred to as “SCHOOL BOARD”), and the following incorporated municipalities (collectively referred to hereinafter as MUNICIPALITIES”): THE CITY OF ALTAMONTE SPRINGS, a Florida municipal corporation, whose address is 225 Newburyport Avenue, Altamonte Springs, Florida 32701; and THE CITY OF CASSELBERRY, a Florida municipal corporation, whose address is 95 Triplet Lake Drive, Casselberry, Florida 32707; and ‘THE CITY OF LAKE MARY, a Florida municipal corporation, whose address is P.O. Box 958445, Lake Mary, Florida 32795-8445; and THE CITY OF LONGWOOD, a Florida municipal corporation, whose address is 175 West Warren Avenue, Longwood, Florida 32750; and THE CITY OF OVIEDO, 2 Florida municipal corporation, whose address is 400 Alexandria Boulevard, Oviedo, Florida 32765; and THE CITY OF SANFORD, 2 Florida municipal corporation, whose address is 300 N. Park Avenue, Sanford, Florida 32771; and ‘THE CITY OF WINTER SPRINGS, a Florida municipal corporation, whose address is 1126 East State Road 434, Winter Springs, Florida 32708. CERTIFIED COPY MARYANNE MORSE CLERK OF ciRGuIT COURT SEMJNOLE COUNTY, FLORIOA ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 1 of 15 DEPUTY CLERK 321WITNESSET WHEREAS, under the authority of Section 212.055(2), Florida Statutes (2013), and pursuant to Seminole County Ordinance Number 2014-8, COUNTY has imposed a one percent (1.0%, ice, 1) local government infrastructure sales surtax upon taxable transactions occurring jn Seminole County and has provided for distribution of the proceeds from the surtax subject to the outcome of a countywide precinct referendum on May 20, 2014; and WHEREAS, COUNTY, the signatory MUNICIPALITIES, and SCHOOL BOARD desire to earnestly and cooperatively work together in order to benefit the citizens of Seminole County by improving the infrastructure of the Seminole County school system as well as providing acceptable levels of service for public transportation system infrastructure, pedestrian access and mobility facilities, trails, stormwater management facilities as well as other public infrastructure and other infrastructure uses as may hereafter be authorized by law throughout the COUNTY and the MUNICIPALITIES by providing for the distribution of the local government infrastructure sales surtax proceeds according to the terms of this Agreement, NOW THEREFORE, in consideration of the promises, covenants and commitments contained herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged by all parties hereto, the parties agree to provide for the distribution of the revenues derived from the local government infrastructure sales surtax as follows: Section 1. Term. This Agreement shall become effective when approved by the Governing Bodies of COUNTY, the requisite number of MUNICIPALITIES, and SCHOOL BOARD pursuant to Section 212.055(2)(c)1, Florida Statutes (2013). This Agreement shall remain in effect for the life of the surtax imposed pursuant to Seminole County Ordinance Number 2014-8 and until all Net Revenues, as defined in Section 2 below, are expended by the respective parties. ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 2 of 15 322Section 2. Distribution of Proceeds. (a) _Itis the intent of the parties to improve the infrastructure of the Seminole County public school system and other public infrastructure within COUNTY and its MUNICIPALITIES so as to provide acceptable levels of services to the residents thereof, Infrastructure shall mean those capital expenditures defined in Section 212.055(2)(4), Florida Statutes (2013) and more particularly described in Exhibits A, B, and C to this Agreement and incorporated herein by reference. The parties recognize the need and agree to consistently communicate on an ongoing basis with regard to the use of surtax revenues and as to the infrastructure project needs and timing as set forth in Exhibits A, B, and C. (b) The Net Revenues (meaning the collected surtax less the amounts retained by the Florida Department of Revenue for administrative expenses pursuant to Section 212.054(4)(b), Florida Statutes (2013)) derived from the local government infrastructure sales surtax levied and imposed by COUNTY shall be distributed by the Department of Revenue directly to the parties to this Agreement pursuant to the terms of Subsection 2(f), below. (© SCHOOL BOARD shall receive twenty-five percent (25%) of the overall Net Revenues collected during the life of the surtax, for use by SCHOOL BOARD on the projects listed in Exhibit A to this Agreement. The proceeds shall be applied by SCHOOL BOARD to the capital projects as shown in Exhibit A to this Agreement. (@) COUNTY shall use twenty-four and two/tenths percent (24.2%) of the Net Revenues to diligently prosecute and complete the infrastructure projects in Seminole County listed in Exhibit B to this Agreement. (©) COUNTY and the signatory MUNICIPALITIES shall use the remaining fifty and cight/tenths percent (50.8%) of the Net Revenues to diligently prosecute the public infrastructure projects listed in Exhibit C to this Agreement. The Net Revenues referred to in the immediately ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 3 of 15, 323preceding sentence shall be distributed among COUNTY and the signatory MUNICIPALITIES according to the formula contained in Section 218.62, Florida Statutes (2013) (incorporated into this Agreement by reference), utilizing population data from the 2013 BEBR Population Estimates which the parties agree is accurately reflected on the Distribution of Proceeds list attached es Exhibit D and incorporated herein by reference. (® Distribution of the Net Revenues hereunder shall be made monthly by the Department of Revenue from the Discretionary Sales Surtax Clearing Trust Fund directly to the COUNTY as to COUNTY’S share of the Net Revenues. The Department shall also make monthly distributions directly to the MUNICIPALITIES and the SCHOOL BOARD as to their respective shares of Net Revenues during the term of this Agreement commencing on or about the fifteenth day of March, 2015 and each month thereafter during the term of this Agreement. Section 3. Project Lists. (a) A project listed in Exhibit A may be deleted from this exhibit or a project may be added to Exhibit A only after approval by the governmental entity controlling the project following a noticed public meeting. (©) A project listed in Exhibit B may be deleted from this exhibit or a project may be added to Exhibit B only after approval by the governmental entity controlling the project following a noticed public meeting. The governmental entity proposing the changes shall notify the County Manager and all other governmental entities that are parties to this Agreement no less. than thirty (30) days before the public meeting. The other government entities that have received notice of the proposed addition or deletion shall have the right to propose comments to the local government entity proposing the change, and any such comments shall be duly considered. Within ten (10) business days following the action of the governmental entity proposing the changes, any of the commenting parties may file an appeal of that action with the Seminole ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 4 of 15 324County Board of County Commissioners. Afer reviewing the original comments, recommendations, and actions with the governmental entity proposing the change, COUNTY shall approve or reject the proposed revisions at a public meeting. (©) A project listed in Exhibit C may be deleted from these exhibits or a project may be added to Exhibit C only after approval by the government authority controlling the Project following a noticed public meeting, (@ The scope of an exis project listed in Exhibit A, B, or C may be expanded, reduced, or otherwise altered upon the written approval of the chief administrative officer of the governmental entity secking the change, subject to the statutes, rules, and procedures of the local government entity. (© The MUNICIPALITIES and the SCHOOL BOARD shall each provide annual reports to COUNTY as soon as practicable after the close of their respective fiscal years, detailing the projects listed in the Exhibits hereto that have either been initiated and ongoing or which have been completed during the immediately preceding fiscal year along with the amounts of Net Revenues applied thereto to include a brief description of the specific project cost items for which such Net Revenues were applied. COUNTY shall provide an annual report to the MUNICIPALITIES and the SCHOOL BOARD as soon as practicable after the close of its fiscal ryeat, detailing the projects listed in the Exhibits hereto that have either been initiated and ‘ongoing or which have been completed during the immediately preceding fiscal year along with the amounts of Net Revenues applied thereto to include a brief description of the specific project cost items for which such Net Revenues were applied. @ In the event the Florida Legislature revises Section 212. .055(2), Florida Statutes to expand the allowable uses of the sales surtax proceeds to include operations and maintenance expenses or other eligible infrastructure uses for the projects identified therein or in Exhibits A, Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 5 of 15 325B and C hereto, the parties hereto reserve the right to amend this Agreement to allow such ‘expenses to be paid from their respective share of the Net Revenues distributed hereunder. Section 4. Entire Agreement. (@) It is understood and agreed that the entire Agreement of the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. (®) Any alterations, amendments, or waivers of the provisions of this Agreement other than those addressed in Section 3 of the Agreement shall be valid only when expressed in writing and duly signed by the parties. (©) _ No provision of this Agreement shall be construed or interpreted to supersede, alter or amend any prior agreements among the parties related to the previous one cent local government infrastructure surtax approved by the voters in 2001 and which expired in 2011. Section 5. Severability. If a provision of this Agreement or the application thereof to any party hereto or circumstance is held invalid, it is the intent of the parties that such invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application and, to this end, the provisions of this Agreement are declared severable. [Balance of this page left intentionally blank; signatures on pages 7 through 15] Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 6 of 15 326IN WITNESS WHEREOF, the parties having caused this Agreement to be duly executed in nine (9) counterparts by their respective and duly authorized offices on the respective dates. SCHOOL BOARD OF SEMINOLE COUNTY Ono Anne. ferk to the Seminole ‘ounty School Board ‘Approved as to form and legal sufficiency. [Signatures Continued on Page 8] ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 7 of 15 327ATTEST: CITY OF ALTAMONTE SPRINGS. } | wy Ge Bates BRIN O'DONNELL, City Clerc PATRICIA BATES, Mayor Date:_A)|5} 14 ‘Approved as to form and legal sufficiency. City/Attomey [Signatures Continued on Page 9] Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 8 of 15 328ATTEST: Dears Lila DONNA G. GARDNER, City Clerk Approved as to form and legal sufficiency. Ca City Attomey CITY OF CASSELBERRY wr G CHARLENE GLANCY/Mgor Date:, sBHlofi [Signatures Continued on Page 10] ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 9 of 15 329ATTEST: CITY OF LAKE MARY / dh \ a0 0. PER — By: CAROL FOSTER. City Clerk DAVID MEAI 4 Mayor Date:_Z Gr py A) y ‘Approved as to form and legal sufficiency. City Attomey [Signatures Continued on Page 11] ‘Seminole County Transportation and Education Infiastructure Plan Interlocal Agreement Page 10 of IS 330ATTEST: CITY OF LONGWOOD By: BRIAN SACI Date_S3-A4g-\4 ‘Being City Clerk ‘Approved as to form and legal suffi [Signatures Continued on Page 12] ‘Seminole County Transportation and Educat Infrastructure Plan Interlocal Agreement Page 11 of 15 331ATTEST: CITY OF OVIEDK By:. BARBARA BARBOUR, City Clerk DONANIC PERSAMPIERE, Mayor Date: (Lb o/ Approved as to form and legal sufficiency. CoWare A Env07—~ [Signatures Continued on Page 13] ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 12 of 15 332ATTEST: eminid PORTER, City Clerk Approved as to form and legal sufficiency. be tet [Signatures Continued on Page 14] Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 13 of 15, 333CITY OF WINTER SPRINGS Date:_March 10, 2014 ‘Approved as to form and . legal sufficiency. City Attomey [Signatures Continued on Page 15] ‘Seminole County Transportation and Education Infrastructure Plan Interlocal Agreement Page 14 of 15 334