Fernandina Beach workshops proposed city budget for FY 2017/18

Submitted by Suanne Z. Thamm
Reporter – News Analyst
August 11, 2017 – 4:07 p.m.

The Fernandina Beach City Commission (FBCC) met in Workshop Session for three hours on August 10, 2017, to discuss the proposed budget for Fiscal Year 2017-18, which begins October 1. City department directors were available to answer questions or clarify their needs as City Manager Dale Martin walked commissioners through a slide presentation with the assistance of City Comptroller Patti Clifford.

A couple of members of the public attended various parts of the presentation. But surprisingly, other than incumbent commissioner Tim Poynter, none of the other candidates for city commission seats in this fall’s election attended.

Martin explained that the first draft of the proposed budget underestimated expected State revenues to the City by approximately $363,000 for Sales Surtax. This unexpected revenue provided City Commissioners an opportunity to consider personnel and projects that had been previously removed in the proposed budget, as well as other projects of interest. These additions would be funded by sales tax revenues, meaning that they would not result in a higher millage rate.

In reviewing the items that had been cut from the budget during the first pass at the budget, the FBCC decided by consensus to include some items and leave out others. Input from affected departments was sought and considered in their decisions.

Items restored to the budget

• Full-time Police Service Aide in lieu of part time position (cost $ 35,315)
• Maintain Aquatics Supervisor position in Parks and Recreation Department in lieu of creating a position for a Conservation Manager (cost $1,674). Vice Mayor Len Kreger, who had advocated for the Conservation Manager position, agreed that creating and funding such a position should await the outcome of an organizational study of the Parks and Recreation Department, which the FBCC agreed to add in at a cost of $20,000.
• Commissioners agreed to replace six months of funding for a new stormwater engineer in the newly created Stormwater Department with a fulltime maintenance worker (cost $6,000).
• July 4^th fireworks (cost $5,000). City Manager Martin allowed that Light Up Amelia has requested assistance from the city for this project over the past two years, and that he has come up with money from his budget to assist. He asked the FBCC if they wanted the arrangement to continue, and if so, to memorialize it in their budget. Mayor Robin Lentz expressed difficulty approving an expenditure for fireworks, “which burn up in five minutes,” when such an amount of money could be put toward projects with a more lasting benefit. Commissioner Tim Poynter reminded commissioners that at one time the city budgeted $12,000 for July 4^th fireworks. But when the Great Recession hit, commissioners opted to turn over responsibility for funding the festivities to local merchants and citizens. He expressed his opinion that the private sector could continue to fund the fireworks, but acknowledged the consensus of the FBCC to formalize an annual contribution from the city.
• Commissioners restored cuts to the Fire Department’s budget by agreeing to fund a new vehicle for the Deputy Chief, capable of responding to beach emergencies (cost $38,000) and funding two ocean rescue all-terrain vehicles (cost $7,500 each).
• The FBCC agreed to contribute $10,000 for a housing needs assessment to be conducted by Nassau County.
• Commissioners restored $49,500 to conduct a street and sidewalk infrastructure survey. They also agreed to pay $75,000 for the purchase of a motor grader for the Streets Department. They restored $42,000 for downtown street improvements, following the city manager’s explanation that covered in this item are activities such as improving lighting, fixing sidewalks, and taking over the Centre Street tree lighting in order to improve the quality of the lighting, provide uniformity throughout the downtown area, and ensure compatibility with the lights that are put up as part of Dickens on Centre each December.

Items considered for re-inclusion but rejected

• Converting part-time purchasing agent to full time (cost $44,244). Comptroller Patti Clifford said that the action was not needed at this time, and that better training of department staff who initiate RFPs would be preferable
• Commissioners eliminated a $10,000 Commissioner Discretionary Fund, which had been set up in the current fiscal year by the city manager to allow commissioners to allocate up to $2,000 each for public projects about which they felt strongly. Commissioners did not spend this money for the most part, and felt uncomfortable administering a private reserve.
• Commissioners declined to approve a plan to add beach parking to Roosevelt Avenue.
• The FBCC declined to restore funding in the amount of $150,000 for a Nature Center until such time as the organizational review of the Parks and Recreation Department has been completed. Also the FBCC deferred action on creating a Land Acquisition Fund in the amount of $250,000. Consensus appeared to be that without existing criteria for deciding which land to purchase, such a fund would be fraught with problems. Commissioners appeared more willing to consider land purchases on an ad hoc basis, such as the recent purchase of the Vuturo property on Front Street.
• The FBCC decided that constructing 2-3 parking spaces at Beach Access 33 was not worth the $10,000 such a project would cost. Beach goers can still park there on the grass in the city right of way.
• Additional dredging of the marina at a cost of $150,000. Westrec marina manager Joe Springer indicated that this cost was covered by grants elsewhere in his budget.

Enterprise Funds

Commissioners devoted considerable time and discussion to budgets and plans for the city’s seven Enterprise Funds, which are intended to be funded by user charges as opposed to ad valorem taxes: Airport, Golf, Marina, Sanitation, Stormwater, Wastewater and Water.

The city manager explained that the Sanitation, Wastewater and Water funds were financially stable. The Stormwater Fund, however, is inadequately funded to complete capital improvements and provide adequate maintenance.

In June Stormwater Department Director Andre Desilet advised the FBCC of the need to raise rates [ See http://fernandinaobserver.org/2017/06/22/stormwater-fees-will-increase-as-city-tackles-problem-areas/].   While commissioners at the time appeared to understand and support the request to raise existing rates, Mayor Robin Lentz appeared to balk at tripling existing rates, explaining that while she and other commissioners would be able to pay the increase, it would be a hardship for those at the lower end of the economic ladder. Discussion followed illustrating that the city was in its current bind because previous commissions declined to adopt recommended rates for fear of creating hardships. Lentz, Desilet and Martin discussed the possibility of creating an exemption list for hardship, much as the city already has for utility fees.

Airport improvement projects are underway. Airport revenue comes from grants, leases, rents, and events with no funding from ad valorem taxes. The airport is projecting an ending cash balance of $ 1,020,738 for the current fiscal year. 2018 projects include Terminal construction, Bulk hangar repairs, and a rate study.

The status of the Golf Enterprise Fund generated considerable discussion along with input from Billy Casper manager Steven Murphy, who emphasized the financial challenges to all golf operations around the country as well as local competition. The accumulated deficit related to projects that predate Billy Casper’s assuming management is projected at $ 625,518 through 2017. Greens fees, memberships, carts are generating revenue at approximately 55 percent of historic highs. However, as recently as 2009 the Golf Fund transferred money to the General Fund. Since 2013 net transfers from the General Fund to Golf have risen to $1.3M, averaging $248,000 per year.

Murphy and the FBCC discussed ways to reverse the finances of the fund while maintaining a city golf course. Repurposing some of the land that is not currently used for golf operations was a topic. Suggestions included adding a 9-hole par 3 course, the possibility of a high end RV park and adding an aquatic feature to the golf course, which might enable the golf course to operate a paying club operation to include golf, swimming and possibly tennis. Commissioners seemed intrigued by the ideas put forward.

In the mean time Murphy requested $265,000 to replace an aging fleet of 80 golf carts, which have exceeded their normal life span and which are costly to repair.