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| ARF- 2606 |
Regular Agenda Item 4. N.
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| Regular BOS Meeting |
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| Information |
| Request/Subject |
| Transportation Needs and Tax Levy Resolution No. 14-06-09 |
| Background Information |
On October 29, 2013, the Board agreed to appoint a Citizens Committee to explore the advisability of holding an election in November 2014 to get voter approval to continue the 1/2 Cent Transportation Excise Tax for an additional 20 years.
On January 7, 2014, a 16 member Citizens Committee was established by the Board. The Committee met twice and after receiving a considerable amount of information from County staff regarding the positive impact the tax has had for the last twenty years and transportation needs in the future, they unanimously agreed to call for a continuation of the tax.
On March 4, 2014, the Board of Supervisors voted to: 1) receive the Transportation Excise Tax Continuation Citizens Committee recommendation to adopt a resolution calling for a November 4, 2014, election providing funding to be used solely for highway and street purposes; 2) thank and acknowledge the following sixteen Committee members with a certificate of appreciation: Gary Andress, Don Ascoli, Robert Bleyl, Ed Carpenter, Darryl Dalley, Rex Hinshaw, Mitch Malkovich, Ronnie McDaniel, Joe Miller, Dixie Mundy, Mickie Nye, Melvin Palmer, Marie Petroff, Cliff Potts, Rick Powers and Joe Sanchez; and, 3) officially disband the Committee.
Since the Board accepted the Committee's recommendation in March, staff has been working with consultants to develop a brochure of pertinent facts and plans and to provide information to the public through community meetings and presentations to various civic and community organizations. Staff has also prepared a needs and levy resolution for Board approval. |
| Evaluation |
Resolution No. 14-06-09 is a resolution providing funding to be used for highway and street purposes including costs of right-of-way acquisitions and expenses related thereto and construction, reconstruction, maintenance, repair and roadside development of county, city and town roads, streets and bridges and payment of principal and interest on highway and street bonds, and for regional transportation projects that are included in the regional transportation plan of the County prepared by the County, any city, town or regional planning agency; and levying a transportation excise tax to provide moneys for said purposes.
The resolution is recommended pursuant to applicable sections of Arizona Revised Statutes Title 42, Chapter 6, Article3, to provide funds for transportation needs of Gila County including the unincorporated areas and the incorporated cities and towns located therein. In order to adequately provide for those transportation needs for the safety of the public, and in a manner which takes into consideration the population growth of both the County and the cities and towns within the County during the twenty (20) year period this Gila County 1/2 Cent Transportation Excise Tax is in effect, it is the intention of the Gila County Board of Supervisors that the funds collected be used for any and all transportation uses authorized by statute. Currently, uses are prescribed in Arizona Revised Statutes Title 28, Chapter 17, Article 3, (Transportation Excise Tax Distribution in Less Populated Counties).
This Resolution will levy upon persons as a result of their business activities within the County, cities and towns and shall be collected by the Arizona Department of Revenue, Transportation Excise Taxes at rate equal to ten percent (10%) of the State of Arizona transaction privilege tax rates applying to engaging or continuing in the County, cities and towns in a business taxed under Arizona Revised Statutes Title 42, Chapter 5, Article 1. |
| Conclusion |
The Citizens Committee thoroughly reviewed uses to which this tax has been put in the past 20 years and studied the future needs as set forth in the transportation plans of the County and major population centers in the County and recommended the Board call for an election to continue the tax.
The tax revenue would be collected by the State Department of Revenue and distributed to Gila County for use within the unincorporated areas of the County and to the incorporated cities and towns for use within their jurisdictions. The calculation of the amounts to be distributed shall be made on the basis that the population of each jurisdiction (Gila County, cities, towns) bears to the total population of the County.
Each respective jurisdiction shall receive a minimum of 0.85% of the total amount to be distributed. In addition, after the distribution of the minimum to each jurisdiction, the remaining amount shall be distributed to each jurisdiction in the amount to be determined by multiplying the total tax revenues remaining after the minimum distribution, by a fraction, the numerator being the population of each respective jurisdiction and denominator being the total population of Gila County including the cities and towns in the County. The 2014 Gila County 1/2 Cent Transportation Excise Tax Distribution Formula illustrates the way the revenue would be distributed based upon the 2013 revenues. The 2014 revenues will likely be different. |
| Recommendation |
| Staff recommends the Board of Supervisors adopt Resolution No. 14-06-09 establishing the uses, levying a 1/2 Cent Transportation Excise Tax and prescribing the method of distribution of the tax revenue to the County, cities and towns. |
| Suggested Motion |
Information/Discussion/Action to adopt Resolution No. 14-06-09, a resolution providing funding to be used for highway and street purposes including costs of right of way acquisitions and expenses related thereto and construction, reconstruction, maintenance, repair and roadside development of county, city and town roads, streets and bridges and payment of principal and interest on highway and street bonds, and for regional transportation projects that are included in the regional transportation plan of the County prepared by the County, any city, town or regional planning agency; and levying a transportation excise tax to provide moneys for said purposes.
(Don McDaniel) |
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