TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Interlocal Agreement Regarding the Distribution Formula for Allocation of Revenue From Local Option Fuel Tax Levied Pursuant to Section 336.025(1)(b), Florida Statutes, Among Sarasota County and Municipalities Within Sarasota County for the 5-Cent Local Option Gas Tax.
Recommended Action
Option 1: Approve the Interlocal Agreement regarding the distribution formula for allocation of revenue from Local Option Fuel Tax levied pursuant to Section 336.025(1)(b), Florida Statutes, among Sarasota County and municipalities within Sarasota County for the 5-Cent Local Option Gas Tax.
City Commission Options
Option 1: Approve the Interlocal Agreement regarding the distribution formula for allocation of revenue from Local Option Fuel Tax levied pursuant to Section 336.025(1)(b), Florida Statutes, among Sarasota County and municipalities within Sarasota County for the 5-Cent Local Option Gas Tax.
• Pros: Approval of the Agreement will allow the City to continue receiving its share of revenue from the 5-cent Local Option Gas Tax and provide funding for transportation improvements. It also maintains coordination between Sarasota County and the municipalities regarding the distribution of these funds.
• Cons: Approval of the Agreement requires the City to accept the established distribution formula, and the amount of revenue received may fluctuate depending on fuel consumption trends.
Option 2: Decline participation in the program.
• Pros: Declining participation allows the City to maintain full control over its transportation funds and avoid being bound by the County’s distribution formula.
• Cons: The City would forfeit its share of the 5-cent Local Option Fuel Tax, reducing funding available for major transportation projects and limiting coordination with Sarasota County and other municipalities.
Background Information
Sarasota County currently levies a 6-cent per gallon local option gas tax, implemented by Sarasota County Ordinance No. 86-65, as amended by Ordinance 2011-069, reauthorized by Ordinance 2016-002, and an additional 5-cent per gallon local option gas tax, implemented by Sarasota County Ordinance No. 2000-029, as authorized by Florida Statute 336.025. Florida Statutes provide that the County may establish, through an Interlocal Agreement with municipalities representing a majority of the incorporated population, a formula to distribute the proceeds of the tax among the County and all eligible municipalities, with population figures reviewed annually as of April 1, 2025.
Sarasota County has requested that the Interlocal Agreement regarding the distribution formula for the 5-cent per gallon Local Option Fuel Tax be included on the North Port City Commission agenda for consideration and approval. Once approved and signed by the Mayor, the Agreement will be submitted to the Sarasota Board of County Commissioners for approval. After execution, the original will be filed with the Florida Department of Revenue before October 1, 2026, as required, and a fully executed copy will be provided to the City Clerk’s Office.
The City’s share of the Local Option Fuel Tax will increase from 19.2889% to 19.7484%. Based on revenues generated between August 2024 and July 2025, totaling $1,575,549.54, this adjustment is expected to result in a proportional increase in the City’s distribution. Final revenue estimates will be provided by the State during the budget development process.
The Interlocal Agreement regarding the distribution formula for allocation of revenue from Local Option Fuel Tax levied pursuant to Section 336.025(1)(b), Florida Statutes, among Sarasota County and municipalities within Sarasota County for the 5-Cent Local Option Gas Tax was reviewed by the City Attorney and is legally correct as to form.
The Interlocal Agreement regarding the distribution formula for allocation of revenue from Local Option Fuel Tax levied pursuant to Section 336.025(1)(b), Florida Statutes, among Sarasota County and municipalities within Sarasota County for the 5-Cent Local Option Gas Tax was provided to the City Clerk’s Office on April 23, 2026, for signature, subject to City Commission approval.
Strategic Plan Pillar
Good Governance
Financial Impact
Actual revenue estimates will be provided by the State of Florida during the budget process. The impacted City revenue account is account number 107-0000-312.43-00.
Procurement
Not applicable.
Attachments:
1. 2026 Interlocal Agreement Local Option Fuel Tax
Prepared by: Tiffany Fowler, Accountant III
Department Director: Irina Kukharenko, CPA, Finance Director