City Manager presents proposed FY 2013/2014 budget

Submitted by Susan Hardee Steger

At an early morning budget workshop on July 12, the Fernandina Beach City Commission took a second look at the proposed budget for the fiscal year 2013-2014. Patti Clifford, finance director presented the proposed budget which includes a property tax increase.

Under discussion is a budget that involves a millage rate increase of .2857 mils to the operating millage rollback rate of 6.18.  The  proposed operating millage rate of 6.4657 will yield $417,000 in additional property tax revenue.  Approval of the  increase will require a 4/5 commission vote. 

The chart below shows the impact of the proposed millage increase on homeowners.  Note on average the value of a $100,000 property is valued at $97,500 in 2014.  The $22 estimates  takes into account a proposed decrease in the voter approved debt (Greenway) portion of the property tax bill.

Absent from the proposed budget are pay raises or cost of living raises for all City employees. The City is in the midst of negotiations with police and fire unions and will begin negotiations with the UBC union shortly.   All collective bargaining agreements for the City’s unions are up for renewal on October 1, after the budget is approved.

The proposed budget cuts three full time positions.   One position will be eliminated in the community development department, and two from  fire.  According to City Manager Joe Gerrity, the fire department reduction will not impact “front line people.”

Included in the proposed budget are transfers of $120,600 to the municipal golf course, and $271,100 to the marina.  These figures represent half of the two enterprise funds’ yearly debt service payment.  “A big chunk of the increase [$417,000] will go to support the marina and the golf course which I think is the fiscally responsible thing to do,” says City Manager Gerrity.   At a previous workshop focused on the golf course and the marina, the consensus of the commission was to budget funds to lessen the negative cash positions and to address auditors’ concerns. 

Commission Arlene Filkoff spoke to  the shortfalls occurring in the marina and golf course enterprise funds.  “At some point we have to put on our big person panties and say what do we need to do about these things [marina and golf course].”  

Other items included in the budget are $35,000 for non-profit funding,  the annual payment to the county for the library of  $52,000, and approximately $34,000 to cover the City’s annual payment to Advanced Disposal to cover solid waste pick up during the Shrimp Festival.  The City of Fernandina Beach is a yearly sponsor of the Shrimp Festival. 

Excluded are funds for marina dredging for this year and perhaps next year according to Gerrity.   Mayor Sarah Pelican says she is “putting a lot of faith in our entrepreneurial skills . . . as far as hopefully removing that [dredging] from the budgets down the road.”  Earlier in the year, the commission on a 4 – 1 vote approved funding $8,000 for two individuals to develop an experimental  water injection dredging device.  (Click here for previous story.)

The City’s reserve level in this budget will be $3,856 million or 22.6%.  The City’s goal is to eventually bring the reserve level back to the 25% range. 

Commissioner Arlene Filkoff asked, “If we go with the proposed budget, do we have risk in being able to provide services to the community?”  “We will do our best.  There is no one twiddling their thumbs asking what we can do next,” responded Gerrity. 

An issue that was not considered when developing the budget is land sales.  Consensus was reached to hold a workshop to consider a voter referendum to sell vacant land zoned recreation.  “If we are not going to use it [vacant land zoned] for recreational purposes therefore make it the original zoning it was, and get rid of the surplus land because it actually costs the taxpayers when we hold vacant land,” says Commissioner Ed Boner.  Of particular interest is city owned property adjacent to the Fernandina Beach Golf Course. 

Another topic of discussion was to consider once a week garbage pickup to reduce costs for residents and lessen the impact of a potential property tax increase.

Major projects included in the Capital Improvement Fund are $54,000 for beach renourishment, beach reserve $310,000, breakwater dock improvement $163,000 (1/2 FIND grant), $200,000 for animal shelter, $274,900 for street resurfacing, and a $600,000 for City’s contribution to the library addition/remodeling project.

As permitting and planning begins for the future beach renourishment, Gerrity indicated he does not know if the county will fund the upcoming renourishment. In the past, funding at 80% was received from the federal government, with the remaining portion coming from state, county, and city participation. Gerrity proposed a future joint workshop with the county commission to discuss county participation.

Although not rejecting the proposed budget, the commission directed Gerrity to bring back other options to reduce expenditures.   More budget discussions will take later in July.

July 16, 2013 2:37 p.m.