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Council approves 30‑year interlocal agreement on local option gas tax; calculation drops one factor and increases city share slightly

Sebastian City Council · March 26, 2026
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Summary

Council approved a 30‑year interlocal agreement to continue the county’s local option gas tax disbursement method. City staff said the new formula uses equivalent lane miles and population (dropping the municipality transportation‑expenditure metric), which yields about a 1.5% increase in the city's percentage share.

The Sebastian City Council on March 25 approved a 30‑year interlocal agreement with the county governing the distribution of the county’s local option gas tax.

Mister Benton explained that the county and municipalities negotiated a revised disbursement method that now uses two factors—equivalent lane miles and population—removing the previous metric that considered municipal transportation expenditures. "So now there's just the first 2 factors to be included in this. And it does, result in about a 1 and a half percent increase in our percentage that the city will receive," Benton told the council.

Council members asked whether taxes or fees charged at electric vehicle charging stations were part of the formula; Benton said the issue has been discussed at other forums but is not addressed in this interlocal agreement and that any change would require state legislative action.

Vice Mayor McPartland moved approval; the motion passed unanimously. The interlocal agreement will be forwarded to the county for final approval and, if adopted, would extend disbursements to August 31, 2056 under the 30‑year term discussed at the meeting.

Council members commended the collaborative work with other municipalities to reach the new formula.