The West Palm Beach City Commission voted unanimously Monday to approve an interlocal agreement with Palm Beach County that defines how transportation capacity (mobility) fees collected in the downtown assessment area will be calculated, collected and distributed.

Assistant City Administrator Armando Fano told the commission the agreement implements a state law adopted in February 2024 that requires cities and counties to have an interlocal in place where mobility or impact fees are imposed. "This is the interlocal between the city and the county regarding mobility fees for the city," Fano said. The city previously adopted a downtown mobility fee schedule (Ordinance No. 5130‑25) and the interlocal establishes the assessment and benefit districts, a distribution formula and administrative responsibilities between the two governments.

Fano said the formula the parties negotiated would keep the majority of fees collected in the downtown assessment area available for projects inside the city while allocating a fixed share to county road projects that serve downtown. Using a sample earlier presented to the commission, the county’s share would be 21.5% of the fees collected inside the designated downtown assessment area to fund county projects within that same zone; the remaining 78.5% would remain with the city for projects identified in the downtown benefit district.

Fano said the interlocal also establishes an approach for distributing fees outside downtown once a citywide mobility plan and fee schedule are completed. Staff emphasized the urgency of completing an interlocal before an October 1 statutory deadline; Fano said if the agreements were not in place by Oct. 1 both the city and county could face a 10% revenue reduction. The county commission was scheduled to consider the same interlocal at its next meeting to meet the deadline.

Commissioners asked how the dollars would be used; Fano listed examples of identified city projects (Fern Street crossing, North Sapodilla improvements) and county projects (smart signalization and Palm Beach Lakes bridge improvements). Staff said the agreement allows the mayor authority to execute future amendments to the interlocal to add or subtract projects as the downtown plan and county priorities evolve.

The resolution passed unanimously. Staff said work on a citywide mobility plan is underway and that a comprehensive plan amendment and additional public review will follow; the city anticipates adopting a citywide mobility fee and methodology later this year.