TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: A Resolution of the City Commission of the City of North Port, Florida, Adopting a Payment in Lieu of Taxes Charged in Addition to the Water Base Facility Charge, Water Consumption Charge and Bulk Water Charge; Providing for Incorporation of Recitals; Providing for Adoption of Payment in Lieu of Taxes; Providing for Exclusions to Payment in Lieu of Taxes; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Approve Resolution No. 2023-R-78.
Background Information
Municipalities and charter counties may levy by ordinance a public service tax on the purchase of electricity, metered or manufactured natural gas, and water service. The tax is levied only upon purchases within the municipality or within the charter county's unincorporated area and cannot exceed 10 percent of the payments received by the seller of the taxable item.
At the budget workshop held on June 14, 2023, the option of a Payment in Lieu of Taxes (PILOT) was presented as part of the City Manager's recommended budget. The PILOT is in lieu of a public service tax on water and provides an increase in revenue in the general fund to be utilized to fund increased expenditures as the city grows.
PILOT fees are not uncommon around the country and the state of Florida. The 5% increase to water only, was delayed until December in order to give proper notification to customers and establish the associated rate resolution.
Resolution No. 2023-R-78 has been reviewed by the City Attorney and is legally correct as to form.
Strategic Plan
Promote sustainable growth and development, while maintaining or enhancing quality of life in our city.
Financial Impact
The payment in lieu of taxes expense has been budgeted in fiscal year 2024 budget in account number 420-6061-581.91-05 as a transfer out to the general fund.
Procurement
Not applicable....
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