Is a gas tax increase a solution to Jax's funding woes?

Started by thelakelander, March 11, 2021, 08:03:58 AM

thelakelander

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A proposed increase in Duval County's gas tax could help fund important priorities like septic tank phaseouts and transportation infrastructure. While some elements remain to be hammered out, it's an idea that's well worth exploring.

Read More: https://www.thejaxsonmag.com/article/is-a-gas-tax-increase-a-solution-to-jaxs-funding-woes/
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life." - Muhammad Ali

Charles Hunter

I think it is important to make clear that a referendum is not needed to pass this gas tax. This City Council can approve it with a "majority plus one" vote - 11 votes.  I hope City Council will hold public meetings dedicated to the gas tax, and not buried as one of dozens of agenda items at regular Council meetings. It will be important for taxpayers to let their Council representatives know how they feel about the proposed list.

The article says
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For instance, an estimated $300-$400 million for septic tank remediation

This must be from General Revenue funds that will no longer have to go to transportation projects?  You can't spend gas tax dollars on non-transportation uses - like septic tanks. Even drainage projects have to be directly related to transportation infrastructure.

Charles Hunter

To get some background on the proposed increase in the Local Option Gas Tax (LOGT), I looked at the North Florida TPO's 2045 Long Range Transportation Plan (LRTP) – Financial Resources Report. The 2045 LRTP was adopted in November 2019 and is updated every five years. To split a fine hair, there are only five cents of "Second Local Option Gas Tax" available to levy; the sixth cent of the increase is the "Ninth-Cent Gas Tax" – this is (somewhat) significant because the two sources have slightly different rules on sharing and use.

From the LRTP Report
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Second LOGT (Five Cents)
The 1993 Florida Legislature extended the scope of the Local Option Gas Tax to include an additional fuel tax of up to five cents per gallon on motor fuel, including gasohol. Diesel fuel is not subject to this tax. Implementation of the second tax of one to five cents per gallon requires a majority plus one vote of the county commissioners. The proceeds of the tax must still be shared with municipalities, either by a mutually agreed upon distribution scheme, or by using the state formula. Pursuant to Section 336, Florida Statutes, local governments may only use revenues from the tax for transportation expenditures needed to meet the requirements of the capital improvements element of an adopted comprehensive plan.
...
Ninth-Cent Gas Tax
The Ninth-Cent Gas Tax was initially authorized in 1972 by the Florida Legislature. The tax is limited to one cent per gallon on highway fuels. ... The 1993 Florida Legislature allowed a county's government body to impose the tax by a majority plus one vote of its membership, without holding the referendum.

Counties are not required to share revenue from the Ninth-Cent Gas Tax with municipalities; however, the proceeds of the tax may be shared with cities in whatever proportion is mutually agreed upon and used for county or municipal transportation purposes.

In Duval County, the "majority plus one vote" for both taxes would be 11 "yes" votes. It appears the five cents of the Second LOGT would have to be shared with Baldwin and the three Beaches cities, while the 9th-Cent could be shared, but does not have to be.  I haven't studied the Draft Project List, so I don't know what, if any, projects are in the four municipalities, and if that would satisfy the requirement for sharing the gas tax revenue.

thelakelander

They should definitely toss more Emerald Trail projects into this.
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life." - Muhammad Ali

Tacachale

Quote from: Charles Hunter on March 11, 2021, 08:52:39 AM
I think it is important to make clear that a referendum is not needed to pass this gas tax. This City Council can approve it with a "majority plus one" vote - 11 votes.  I hope City Council will hold public meetings dedicated to the gas tax, and not buried as one of dozens of agenda items at regular Council meetings. It will be important for taxpayers to let their Council representatives know how they feel about the proposed list.

The article says
Quote
For instance, an estimated $300-$400 million for septic tank remediation

This must be from General Revenue funds that will no longer have to go to transportation projects?  You can't spend gas tax dollars on non-transportation uses - like septic tanks. Even drainage projects have to be directly related to transportation infrastructure.

Thanks, I clarified what Elsbury was talking about. He said that the revenues from the gas tax (going to transportation projects) could free up money in the general fund that could be used for septic tank remediation. The devil's in the details, but if his numbers pan out it would be a good chunk of the backlog.
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Steve

This project list is where I have some heartache. It's not the money per se, and for programs like this you generally can't pick and choose and be happy with every project on the list.

But, when one project is 85% of JTA's cut of the funding and that one project is ridiculous, that's a problem.
Drop the project and shift the funds to the full construction of Amtrak at JRTC and other projects (since I can't imagine bringing Amtrak to JRTC would be $380M) then I'm all on board and I'll wave a sign supporting it.

As is....I don't know.

thelakelander

Totally understandable. You can't have 1/2 of the pot go to something like that. Also, I was under the impression that they were pursuing federal and state funds for the U2C. If that's the case, the pot should only cover the local 25% of capital costs and switch the rest of that money to more projects all over the city.
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life." - Muhammad Ali

CityLife

Said it in another thread, but throw whatever it takes to get Brightline to Jax. It perfectly aligns with the what gas taxes are supposed to be used for and at the same time is arguably the single biggest economic development play the city can make.

thelakelander

From a Brightline perspective, investing in the Skyway and building density around its stations are very important.
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life." - Muhammad Ali

jaxlongtimer

Quote from: thelakelander on March 11, 2021, 01:42:33 PM
From a Brightline perspective, investing in the Skyway and building density around its stations are very important.

LOL.  My prediction is that by the time Brightline makes it to Jax the AV-Skyway will be kaput - even with the $380 million proposed investment.  Too many better alternatives and the City's mismanagement of the urban core will have doomed it.

thelakelander

#10
For intercity to effectively work, you need effective mass transit to move people around the city without the need of a car. The Skyway or whatever thing anyone wants to replace it with, will need to be invested in and/or implemented.
"A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life." - Muhammad Ali

WAJAS

Fund the Emerald Trail in full. Give half the skyway funding to a new commuter rail route, and ask the federal and state government for the remaining portion of each project. If neither gets state/federal funding, then I'd say lump it all into the Skyway. With the real possibility of a big infrastructure bill around the corner, Jax should be positioning themselves to qualify for a lump of it.

Charles Hunter

Now, to start picking on specific projects not called "U2C"
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Lone Star Road extension: (east of Mill Cove to Trednick Parkway): $3 million

First, three million out of nearly a billion-dollar list of projects isn't a big deal. But, this road already exists. At some point in the last few months, Lone Star was disconnected from the western leg of the roundabout.  Even if they removed all the pavement (which I don't think was done) between the closest street (Mathews Manor) and the roundabout, I can't see it costing $3 million for less than 250 feet of pavement. If the project is to, for some reason, widen the new Lone Star Road, between Mill Creek Road and the roundabout, to 4 lanes, the project description should say so.

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Peter Griffin

Quote from: Charles Hunter on March 12, 2021, 12:32:33 PM
Now, to start picking on specific projects not called "U2C"
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Lone Star Road extension: (east of Mill Cove to Trednick Parkway): $3 million

First, three million out of nearly a billion-dollar list of projects isn't a big deal. But, this road already exists. At some point in the last few months, Lone Star was disconnected from the western leg of the roundabout.  Even if they removed all the pavement (which I don't think was done) between the closest street (Mathews Manor) and the roundabout, I can't see it costing $3 million for less than 250 feet of pavement. If the project is to, for some reason, widen the new Lone Star Road, between Mill Creek Road and the roundabout, to 4 lanes, the project description should say so.


I noticed this, too. The developer may have built it and rolled it into the CDD or something, but it seemed like an oversight. Also, they list the 5th Street bridge, which is a project I know is currently being designed and is under contract for design and eventual construction under the Department of Public Works. Unless they're proposing supplemental money for a project already underway, I can't imagine why funding would be listed twice.

There's some odd things in this bill of projects...

BridgeTroll

Soooo... does Curry have bad luck... bad political instincts... bad timing??  He proposes this gas tax increase at the very moment gas prices are rising to their highest in years... people are driving more since few want to be in a airport or terminal.

Just seems odd to me...

Happy Friday!  8)
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