Santa Rosa County Commissioners considers raising the local gas tax to help pay for needed transportation costs including road repair and improvements.
During Tuesday’s Santa Rosa County Board of County Commissioners Commission Committee meeting, County Administrator Hunter Walker presented a “preliminary list of the needs we see…on what the transportation needs are coming up,” the beginning steps county staff has taken to meet the BOCC directive of the February 23 and 26 meetings for “some kind of framework for a multiyear transportation plan outlining anticipated needs and potential funding sources,” Walker said. The list he presented totaled roughly $36.5 million.
The list broke down into four cost categories: roughly $9.2 million for resurfacing projects, $6.6 million for turn lanes, $6.2 million for third lanes, and $14.5 million for bike and pedestrian paths. After going through the projects list, Walker went through three potential funding sources: gas tax options, reinstating impact fees, and a potential return of Small County Outreach Program funding.
According to Walker’s presentation, counties are allowed to levy up to 12 cents in gas taxes. He pointed out Santa Rosa County ties for the lowest gas tax with Indian River County at six cents. Neighboring Escambia County is at 11 cents.
Secondly, Walker reviewed impact fees, which he said are currently suspended through June 30. According to his letter to the board, “The currently suspended transportation impact fee is expected to generate approximately $3.0 million per year based on 2013 construction rates.” These are one-time fees with a seven-year payout levied in different amounts on various structures like single family homes or convenience retail stores in rural areas.
Finally, Walker said, “I do know that we have requested the legislature relent on the SCOP. I don’t know how successful we’ll be with that…but we’ll know that fairly quickly. You’ll need to make a decision on the impact fees by your June 30 date.” The board would have to decide on changes to the local option gas tax, he said, before October and notify the department of revenue for a January 1 start date. “These fees or funds are generated in the unincorporated area,” Walker said.
Chairman Salter said the board has been seeking additional transportation funds since 2006 but despite losing $1.2 million in SCOP funds, Salter said, “We were going to be in trouble even if that grant program had not been discontinued so we were going to have to try to find some additional revenue.” He went on to say, “As one, I’m ready to take action on the gas revenue. Other counties use that to pay for their transportation. Our legislature years ago gave us the ability to use that gas tax to cover transpiration costs.” Salter said the gas tax would be fairest since not only residents but travelers filling up in Santa Rosa County would pay it, and favored it over property taxes.
The other four commissioners were not so ready to back a gas tax. Commissioner Lynchard said his constituents would only back an impact fee or gas tax if specific projects could justify them. He said it’s early yet to see if SCOP will be reinstated and would prefer to work on transportation needs without raising taxes. “We’re going to have to explain to our constituents why a tax increase would be necessary.” Lynchard, who represents District Five, also pointed out most of the projects and capital needs plan are in the north end of the county.
Echoing Lynchard, Commissioner Bob Cole said, “Perhaps I would go along with a gas tax if we could identify and time frame what the folks would get for the money.” He also said he would possibly support a sales tax for roads “if people knew what they were going to get and how soon they were going to get it for the money.” Cole also suggesting going to the state for help on secondary roads, which were, as he put it, gifts from the state initially. He also argued against the impact fees saying they hinder new development and added new businesses increase the tax base.
Commissioner Jayer Williamson said after he and Commissioner Rob Williamson traveled to Tallahassee he’s “heard good things” about getting back into the SCOP but said the county can’t assume the SCOP is coming back nor should the board act before knowing it won’t.
Williamson asked what amount of money the county sets aside for major resurfacing. Walker said none was except for the amount built up when the electric franchise fee was originally provided for back in the mid 90s. “Currently we’re using the fund balance that had been in there and the road and bridge reserve but it’s finite. There’s no source of funds to set aside from and that’s why we’re having these discussions,” Walker said.
While he said he was reluctant to bring up the courthouse again, with a probable sales tax on the 2016 ballot, Jayer Williamson said, “If we’re going to take action to raise taxes, and they are implemented in January, and then we’re going to be asking the people to vote on a major capital expenditure in March…that’s when it’s really going to hit the fan.”
While Public Works said higher numbers would be necessary for proper maintenance and the only speaker from the public, Jerry Couey, said around 2003 or 2004 the county annex was packed over a possible millage rate increase, Lynchard said, “In 2007, property taxes in Santa Rosa County were over $58 million. This year we’re going to collect around $46 million so our property taxes are still almost 25% lower than they were seven, eight years ago.” He also said every year the county pushes back against initiatives from Tallahassee, which this year include losing $1 million from the SCOP and potentially the same amount in Medicaid costs being pushed to the county.”
Salter wrapped up saying, “The challenge is how are we going to pay for our transportation system…Those transportation costs are real and we’re going to have to figure out how to pay for them.” As Salter directed Walker and his staff, expect to see this issue come before the board again in the future.
This article originally appeared on Santa Rosa Press Gazette: Commission considers increasing gas tax