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ITEM: RESOLUTION NO. R2025-08 (INTERLOCAL AGREEMENT WITH PALM BEACH COUNTY FOR SIX (6) CENT LOCAL OPTION FUEL TAX)
A RESOLUTION OF WELLINGTON, FLORIDA’S COUNCIL APPROVING THE RENEWAL OF THE INTERLOCAL AGREEMENT WITH PALM BEACH COUNTY TO RE-DETERMINE, RE-ADOPT AND RATIFY THE EXISTING DISTRIBUTION FORMULA FOR SIX (6) CENT LOCAL OPTION FUEL TAX; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Resolution No. R2025-08 approving the renewal of the Interlocal Agreement with Palm Beach County to re-determine, re-adopt, and ratify the existing distribution formula for six (6) cent local option fuel tax; and providing an effective date.
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EXPLANATION: The existing local option six (6) Cent Gas Tax levied upon the sale of every gallon of motor fuel and special fuel within Palm Beach County expires August 31, 2025. Support from 51% of the municipalities is needed for renewal. The proposed renewal interlocal agreement is attached.
The table below shows the revenues from the local option 6 cent gas tax for the past five years.
Local Option Gas Tax
FY24 $ 1,113,228
FY23 $ 1,136,998
FY22 $ 1,111,457
FY21 $ 1,071,901
FY20 $ 1,015,110
$ 5,448,694
This additional revenue will be included in upcoming budget processes pursuant to the sunset provisions.
Specific projects and their subsequent appropriation(s) will be brought to Council for approval as part of the annual budget process using this revenue source.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Renewal of this Interlocal Agreement will continue the inclusion of the local option six (6) cent gas tax revenues as part of the annual budget process. The Fiscal Year 2025 approved budget includes local option six (6) cent gas tax revenues of approximately $1.1 million. Capital Projects are authorized and approved by Council using gas tax revenues in compliance with the interlocal agreement.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Approval of Resolution No. R2025-08 approving the renewal of the Interlocal Agreement with Palm Beach County to re-determine, re-adopt and ratify the existing distribution formula for six (6) cent local option fuel tax; and providing an effective date.