Baker County commissioners outline plan to add 5¢ local gas tax to fund road maintenance and pay raises

Baker County commissioners and staff on the record at a workshop described a plan to adopt the second local 5¢ optional motor fuel tax to pay for road and drainage maintenance, a proposed $3-an-hour pay increase for current road employees, two new maintenance crews and capital equipment purchases.

Commissioner Bennett said the county’s road-and-bridge fund is a restricted account and that the proposed local option motor fuel tax revenue would be used only for road, bridge and drainage work and related staffing costs. He said the county would be cautious about hiring new crews until revenue is actually received.

County staff presented an estimate of $862,294.80 in annual revenue from a one-time 5¢ increase based on 2023 gallon counts (the staff presentation noted a 10-year average of $8.69 per gallon and used a conservative $8.62 basis). Staff summarized a proposal that applies the revenue to: a $3 hourly increase for existing public works employees (listed in the packet as $190,985 in additional recurring cost over current budget), creation of a year-round pipe-and-ditch (drainage) crew and a summer-to-winter mowing/brush-clearing crew (staffing loaded cost over current budget summarized around $228,904 to add those positions), capital purchases for two tractors/mowers (estimated at about $298,974, rounded in discussion to $300,000 if purchased outright), a 5% annual set-aside to build a restricted reserve (about $43,000) and remaining material costs (about $93,291 in the packet). Staff emphasized purchases could be leased instead of bought to reduce first-year capital outlay.

Sarah, a county staff member, told the board she contacted the Florida Department of Revenue (DOR) to confirm how county/city revenue-sharing percentages are calculated and the effect of letting the current interlocal agreement expire. She said DOR calculates percentages from actual transportation expenditures over the prior five years and that, if the interlocal agreement were allowed to expire, DOR would perform the same cost-based calculation on the county’s behalf. Sarah also reported DOR told her that revenue from the additional local option tax generally remains with the county unless the parties negotiate a revenue share in an interlocal agreement.

Commissioners and staff discussed the existing interlocal agreement that allocates current motor-fuel revenues among Baker County, the City of McClenny and the Town of Glen (packet discussion listed McClenny at roughly 13%, Glen 1% and Baker County 86% based on five-year expenditure shares). The interlocal agreement in the packet was described as expiring in June; staff recommended updating that agreement and, if the board desires, adding a clause stating that 100% of any new additional local option tax would be allocated to the county.

Staff outlined the procedural requirements and timeline: Florida law requires two public hearings to adopt the additional local option tax by ordinance. Staff proposed holding informational public hearings and then required hearings with an illustrative schedule of a first public hearing on April 1 and a final public hearing and coordinated interlocal approval on May 6, in time to meet state notice deadlines for a January 1 effective date. Staff and commissioners repeatedly noted that, even if the board adopted an ordinance, the additional tax would not produce revenue until collections begin on Jan. 1 of the effective year and that the county should avoid committing to hiring or spending until revenues are being received—meaning hires and capital could be phased into the fiscal year after revenues begin.

Commissioners asked about alternatives and constraints, including using private contractors for specific drainage projects in years without large capital expenditures. Several commissioners emphasized holding some revenue in reserve for emergency drainage repairs and recommended ensuring all agencies use consistent five-year actual-expenditure calculations when updating the interlocal percentages. Commissioners also discussed market competition for workers, noting the $3 hourly increase would improve recruitment and retention but not fully match private-sector contractor pay; benefits and retirement were discussed as important parts of the county employment package.

No formal motion or vote was recorded in the workshop. The board directed staff to prepare an ordinance and recommended scheduling required public hearings (staff suggested April 1 and May 6 in the illustrative timeline) and to coordinate updated five-year expenditure data with the City of McClenny and the Town of Glen so that any interlocal agreement could be finalized by the May meeting.

The workshop closed with commissioners agreeing to keep the matter on the timeline and to ensure any spending is phased only after revenues are realized and budgeted.