- April 26, 2024
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Mayor Ed Kelley said the city will adjust its budget in preparation of receiving a smaller share of county gas tax revenues in five years.
BY MATT MENCARINI | STAFF WRITER
Expecting the worst in five years, Ormond Beach will take a proactive approach now.
The City Commission voted unanimously to approve a five-year extension of the Volusia County interlocal gas tax agreement, which was set to expire August 31. The extension pushes off the date when the city may begin receiving less from the county’s gas tax.
City managers and finance directors “held extensive discussions,” the city said, to reach a new formula to disperse funds collected through the gas tax. While a consensus couldn’t be reached, the city estimated it could have lost between $50,000 and $325,000 annually, depending on the proposal.
So, instead, Ormond Beach did its part Tuesday, voting to secure the same formula for the next five years. If cities representing more than 50% of Volusia’s population do the same, the formula will remain unchanged for the next five years.
The current formula gives 57.239% of the tax revenue to Volusia County, with the remaining 42.761% being split between the municipalities based on a equation using population and taxable assessed value. The Ormond Beach share is currently 5.087%.
By voting for the extension, the city now has time to prepare for future losses, after the next expiration, August 31, 2018.
“What it does is it gives us a chance to plan for the fact that, five years from now, they may take it away,” Mayor Ed Kelley said. “And we’re going to make plans in our budget. ... If they were to cut all of the gas tax out, we have time now to plan to make that change.”
Kelley said the city created a dedicated millage in the 1990s for maintaining the city’s sidewalks and streets, but losing significant funds from the gas tax would still hurt.
“If they were to take all of that away, it would be devastating to us as a community,” he said. “We’ve been able to maintain our roads. If they take it away ... we’ll have a slot in a budget that we’re preparing for.”
For the extension to become official, municipal governments representing more than 50% of the county’s population, must vote in favor. If the vote doesn’t reach more than 50%, the formula defaults to one “using historical transportation expenses,” the city said.
Daytona Beach City Manager James Chisholm, as well as Volusia County staff, has voiced support for the five-year extension.
Any funds received from the gas tax must be used for transportation or road expenditures.
John Anderson job: Bid now
The city requested bids for the John Anderson Drive Roadway Improvements Project, which the city estimates will cost $ 3.3 million, includes milling and resurfacing existing pavement, providing drainage improvements and sewer improvements.
Project funds will come from several city funds, and a budget amendment will include the appropriate cost in 2012-13 fiscal year budget.
