Submitted by Suanne Z. Thamm
Reporter – News Analyst
August 1, 2018 9:00 a.m.
At a Special Meeting called for this purpose on July 31, 2018, the Fernandina Beach City Commission (FBCC) adopted a tentative operating millage rate for the coming fiscal year that begins October 1, 2018. At 5.8553 mills, that tentative rate dropped from the current year operating millage rate of 6.0000 mills. Combining an operating millage rate of 5.8553 with the voter-approved millage rate of 0.1929 (Greenway fund) yields a total millage of 6.0482 and would generate $12,753,306 in property tax revenue (assuming receipt of 96% of the levied amount).
About a dozen people, including city staff, media, and at least one commission candidate, attended the meeting, which lasted about 10 minutes. There was no public comment. But the meeting was not without some drama.
Although the City Manager recommended an operating millage rate of 5.8553, some commissioners believed that the city should maintain its current rate of 6.000. Commissioner Chip Ross suggested that maintaining this year’s rate would allow the city to add $300,000 to its program to purchase land for conservation purposes. Commissioner Roy Smith, who seconded Ross’ motion, said that he might differ with Ross on putting all the extra revenue into the conservation program, but that he agreed that the city had needs for the extra revenue.
Vice Mayor Len Kreger said that with increasing property valuations, the city would be taking in more revenue, and he wanted to see the city do a better job managing the resources it has. He cited concerns over management of capital projects as well as maintaining infrastructure. Kreger said he would oppose the measure, citing increasing tax burdens on property owners and renters as a result of County and School Board tax increases. Mayor John Miller also voted against the motion, providing no reason. The motion failed on a 3-2 vote. To pass such a measure would have required a unanimous vote.
When the motion failed, Commissioner Chip Ross moved and Vice Mayor Len Kreger seconded adopting the rate recommended by the City Manager. That motion passed on a 4-1 vote, with Commissioner Roy Smith in opposition. Smith did not explain why he opposed the motion. While the tentative millage rate is lower than the current year’s rate, it is higher than the operating millage “roll-back” rate of 5.2459. Therefore, it required a 2/3rds vote for approval.
The City’s Fund Balance Policy (per Resolution 2012-128) establishes 20% as the minimum for the General Fund’s unrestricted, uncommitted, or unassigned balance. Another portion of the General Fund Reserve is restricted per Florida Statutes 553.8(7), and may only be used for expenditures related to the Building and Permitting functions. The anticipated unrestricted, uncommitted, or unassigned reserve for fiscal year ending September 30, 2019, is budgeted to be 20.1%. The total reserve, including the restricted portion, is anticipated to be 30.3%.
With the passage of the tentative millage rate, the city will send formal notification to the Nassau County Property Appraiser, who will prepare and mail to all property owners the notice of proposed tax rates from all local taxing bodies next month. The FBCC has set two additional budget meetings so that they may consider public comment:
- August 13, 2018 at 6:00 p.m. in Commission Chambers, City Hall
- August 14, 2018 at 6:00 p.m. in Commission Chambers, City Hall
The tentative rate cannot be increased, but may be decreased at the first and/or final budget public hearings.
While I understand Comm. Ross and Smith’s position, the double whammy of the School Board increase and the County increase will make it difficult for many. Kudos to this commission as well as others in previous years for maintaining financial prudence while understanding the reality of maintaining infrastructure and avoiding the problems now being faced at the county level.