Despite Lawsuit, Commission Moves Forward With Transportation Tax

TAMPA, FL – The Hillsborough County Commission is moving forward with a bond issue to fund projects to be paid for with the newly approved 1-cent transportation tax despite a lawsuit filed by one of its members maintaining that the tax violates state law.

Duane Draper, bond counsel for the county, appeared before the commission at Wednesday’s meeting to recommend that the commission proceed with a bond validation hearing that will allow the county to issue $10 million in bonds to pay for the first projects to be funded by the tax.

The 1-cent sales tax for transportation inprovements was approved by a 57 percent majority of voters in the Nov. 6 election.

Issuing bonds to proceed with projects prior to collecting the sales taxes would normally be routine. However, County Commissioner Stacy White has filed a lawsuit questioning the legality of the transportation referendum amending the county's charter.

Draper said going ahead with the bond hearing will resolve questions surrounding the transportation tax faster while ensuring that no other legal actions delay implementing the referendum.

“If we go ahead with the validation of the bonds, we will file a case with the courts and ask for an expedited process by circuit court on the lawsuit,” he said. Even if the lawsuit is appealed to the Supreme Court, Draper said the county would have a determination by early 2020.

But that leaves the commission with a dilemma, said County Commissioner Mariella Smith. When voters approved the referendum, it was with the promise that the transportation improvements will get underway in 2019.

Alan Zimmet, the attorney retained to represent the commission in the lawsuit filed by White, said that is the reason the bond issue is for just $10 million, a relatively small chunk of the revenue to be generated by the tax.

The 30-year transportation measure will add a penny on the dollar to the sales tax and raise about $276 million per year.

White, however, told fellow commissioners it would be a mistake for the county to go ahead with a hearing on the validity of issuing bonds when there’s a question mark hanging over the referendum.

“I believe there’s legal uncertainty,” he said. “The drafters of Article 11 (the referendum on the sales tax for transportation) haven’t demonstrated that this is lawful.”

At the very least, said White, the commission should obtain a legal opinion on whether the referendum is consistent with state law before proceeding with the bond hearing.

“Isn’t that hypocritical to say we have to move forward with this unlawful or not?,” asked White.

White contends that the voters were deceived into approving the transportation tax. They were told it was a citizen-led initiative when, in fact, it was led by monied special interests in downtown Tampa using a slick $4 million public relations campaign to sway voters.

He said voters were misled into thinking that voting for the tax would result in the construction of new roads in the rural areas of unincorporated Hillsborough County where two-thirds of the voters live. That’s not the case, said White. The funds will actually go to transportation alternatives, repaving roads, sidewalks and improved traffic signals.

“There’s practically nil road projects in this thing,” he said. “What would be done if two-thirds of citizens in rural areas find out they’ve been hoodwinked and there’s nothing in here for roads?”

White said he wouldn’t be surprised if those voters launched another “citizen-led initiative” to revoke the transportation tax.

Commission Chairman Les Miller, however, said White isn’t giving voters enough credit.

“To say the voters didn’t know what they were doing … that it is flawed is a big bunch of bull,” he said.

County Administrator Mike Merrill said the commission has little choice but to move forward since there’s no way to know what will happen regarding the lawsuit.

“Our responsibility is to advise you to spend money that’s been authorized by the voters,” he said. “All we have to deal with today is a voter-authorized referendum to spend the money. We don’t know what will happen down the road.”

He noted that the other stakeholders in the tax – HART, the Metropolitan Planning Organization and the cities of Temple Terrace, Plant City and Tampa – support proceeding with bond validation.

Commissioner Pat Kemp said she feels comfortable moving forward.

“If it’s not valid, if your (White’s) lawsuit prevails, we’re not on hook for anything but this relatively small bond issue,” she said.

Zimmet added that he’s requested a hearing on March 14 to dismiss White’s lawsuit.

Also on Wednesday, the commission was asked to approve a draft interlocal agreement with HART, the MPO and the cities that will receive a portion of the transportation tax money.

Both resolutions were approved 6-1 with White voting against both.

Christina Barker, a member of All For Transportation, the group that led the petition drive to place the transportation referendum on the ballot, applauded the commission’s vote.

“Voters demanded action on transportation in November and we are thankful that the County Commission positively responded to those demands today,” she said. “Swiftly pursuing an interlocal agreement and authorizing bonds puts us one step closer to safer streets and shorter commutes for everybody in Hillsborough County."

Image via Hillsborough County

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