Bad News: City could lose $1 million-plus in local option gas tax

City of Pensacola may lose $1,086,400 in local option gas tax revenue if the Escambia Board of County Commissioners passes a proposed resolution to adjust the formula used to allocate the gas tax revenue between the county, city of Pensacola and Town of Century.

According to Florida law, the gas tax revenue allocations are to be based on the road expenditures as reported in the Comprehensive Annual Financial Reports (CAFR) of the past five years. The county has calculated that the allocation percentage for the city should be 5.45 percent – 70 percent reduction from the old 18.22 percent. The city gas tax revenues will drop from $1.55 million to $463,600.

County Administrator Jack Brown told Inweekly that he talked with both former COO Tamara Fountain and City Administrator Eric Olson about the new formula. He said that Olson asked the City CFO Dick Barker and Assistant County Administrator Amy Lovoy review the city CAFRs and look for ways to increase the new allocation.

The BCC will discuss the issue tomorrow at its 9 a.m. meeting.

Read: 150901 Memo_fm CFO_LOGT.