Weekly comments from Dale Martin

Dale Martin
City Manager
Fernandina Beach

June 2, 2017 1:00 a.m.

City Manager Dale Martin

It’s the time of year that once again has City staff preparing for the annual budget preparation. It is an interesting time to evaluate the wishes of the City staff, the direction of the City Commission, and the demands of the City residents. The resulting balance rarely leaves everyone completely satisfied, but compromise is necessary to complete this critical task.

I cannot repeat often enough how instrumental Ms. Patti Clifford, City Comptroller, is to the budget process. Her experience and expertise is invaluable. She will be a little shorthanded this cycle due to the retirement of Ms. Janet Harris, another experienced expert whose insight and assistance will be difficult to replace. Nonetheless, the pages of budget calendar methodically and unforgivingly continue to turn toward October 1 when the next fiscal year begins.

A controlling factor for both revenues and expenditures is the growth within the City. Preliminary reports from the Nassau County Property Appraiser’s office have pegged the City’s 2016 growth at approximately ten percent. The City’s final gross taxable value for 2016 was $1,808,000,000; the draft gross taxable value for 2017 is $1,995,000,000. Of that increase, $23,000,000 is attributed to new taxable value: new construction, additions, limited rehabilitative improvements, annexations, and limited higher-valued personal property. Please take a moment to consider those values: solely within the city limits, Fernandina Beach recognized approximately $23 million of new value.

Many of the City staff requests are for additional personnel in response to the growth, either to restore positions previously lost when the local (and state and national) economies were contracting or to sustain the levels of service desired by the community. Not all requests for additional staffing can be accommodated, so it becomes a matter of prioritizing staffing needs.

In addition to salaries and wages, personnel costs include several other factors such as Social Security, healthcare, life insurance, workers compensation, and retirement. Some of those factors are in flux due to market or statutory events, in some measure beyond the control of the City. The growth and related demand for labor elsewhere in the region has an impact upon the available labor force and the associated cost of labor.

Capital projects are another larger part of the annual budget: what are the “big ticket” and visible projects that are considered? Facilities age, requiring more expensive maintenance, and facilities may also become outdated for the services and programs offered. Key facilities that necessitate review are many of the City’s recreational facilities such as the Martin Luther King, Jr. complex, the Atlantic Recreation Center, and several smaller facilities and parks. The current police facility has had ongoing maintenance issues, as have the fire stations. Discussions also continue regarding the possible relocation of City offices to the former Post Office on Centre Street.

The City’s vehicle fleet requires routine maintenance and scheduled replacement. Fire apparatus, rescue rigs, and police vehicles not only need to be purchased, but also outfitted with specialized (expensive) equipment. Another significant public safety expenditure next year will be replacing radios to remain compatible as County public safety services transition to a new system. That expense alone will be approximately $500,000.

Not everything is related to new personnel, equipment, facilities, or “stuff”: the City also provides funding to support other agencies, programs, and services. The Council on Aging, the Amelia Island Museum of History, Fernandina Beach Animal Rescue, Main Street, and the Nassau County Economic Development Board all receive City appropriations. Training is funded for City Commissioners and staff to learn of best practices and through other communities’ and officials’ experiences as well as maintain key credentials and certifications, most of which require annual training requirements: law enforcement, fire personnel, building officials, equipment operators, utility operators, and even city managers.

The budget is a wonderful puzzle that defines our community. It is a privilege to work with the City Commissioners, staff, and community to fit all the pieces that will define us for the next year (and beyond). As it should be, it is a time-consuming and meticulous process. I have often suggested that residents should go through their own annual budget exercise to gain a better understanding of the process: project every household revenue and expense to the dollar for the next twelve months. You may find it to be enlightening.

Please remain aware and informed as we build the budget. Your comments and input are necessary.