Apalachicola Considers Raising User Fees

Struggling to adjust to an 8 percent drop in its combined property valuation, Apalachicola officials are weighing a proposal to balance next year’s roughly $2 million budget by raising the millage rate and boosting several user fees.

At the Aug. 12 budget workshop, Mayor Van Johnson, and Commissioners Jimmy Elliott and Frank Cook listened to a plan presented by city staff that, if enacted, would increase the millage rate from 5.78 mills to 6.125 mills, the maximum allowed by the state.

Even with the millage hike, the city would generate in 2008-09 only about $1.28 million, still $31,367 less than was brought in during the current budget year.

This is because the city’s property values, which totaled about $227.7 million this year, will be roughly 8 percent less next year, a roughly $17.9 million drop, to about $209.7 million.

Prior to City Clerk Lee Mathes’ outlining details of the proposed budget, former city commissioner Rose McCoy shared with commissioners the recommendations of the newly-created citizens’ budget committee, which also includes Jim Philyaw, Rita Sawyer, Dick Dosik and Cook, the city’s finance commissioner.

In creating the four-person committee, Johnson last month asked the members to review the city staff’s recommendation for a 2008-09 budget, make recommendations to the commission “using the principle of ‘zero based budgeting’ as a guide,” and make any additional recommendations it believes “would improve the overall fiscal operation of the city.”

In examining next year’s budget, the citizens’ committee faced the stark reality that revenue in each of six major areas likely would be less next year.

Depending on the millage rate, ad valorem tax proceeds would decline anywhere from about $31,000 to nearly $104,000, while the half-cent sales tax would decline from $157,000 to $130,000; the gas franchise from $10,000 to $6,000; building permit revenue from $10,000 to $6,000; state revenue sharing from $92,500 to $85,000; and grant administration from $50,000 to $25,000.

By recommending that the city’s budget “reflect the actual income and expenses in all departments and the general fund,” the citizens committee by and large backed a series of user fee hikes which, if enacted in their entirety, could bring in as much as $166,000.

Mathes, however, did not incorporate the increased fees into her budget projections. “These are only estimates,” said Cook. “We don’t know how they’re going to play out. These are things that have to be done to make us more realistic.”

Johnson had suggested that if the user fees are enacted, they might be able to offset the need to raise the millage. “These fees won’t affect the broader community,” he said.

From Golf Cart Registration to Grave Openings

The citizens committee went on record in favoring a boost to the mooring fee at Battery Park, noting that current revenue generated does not cover the cost of maintaining the marina. If the mooring fee were doubled, from about $1.50 per foot to $3 as the committee recommended, the hike would bring in about $54,000 in additional revenue.

The city’s staff also recommended a usage fee be implemented for launching at the newly-renovated Battery Park boat ramp. Seafood workers would be granted a free annual pass for their work vessels, while recreational users would have the option of paying a $35 annual fee for unlimited use, or $2 per launch.

The ramp usage fee is in line with a state recommendation and is estimated to bring in an additional $5,000 in revenue per year.

City Administrator Betty Webb is now in talks with the U.S. Fish and Wildlife Service (FWS), the Florida Department of Environmental Protection and the local Scipio Creek marina committee regarding the expiration of an existing management agreement that expires at the end of September.

The citizens committee recommended several changes, including a new rental agreement with FWS for their St. Vincent Island National Wildlife Refuge offices that would boost the $1,400 monthly rent. “The increase is needed to provide minimum maintenance for the structure,” wrote the committee.

That change is estimated to bring in an additional $10,000 per year to the city, with another $2,000 forthcoming by charging DEP for each of its boats docked at Scipio Creek.

Drawing on the committee’s recommendations, Mathes and Webb outlined a list of close to $80,000 in user fee increases which are now on the city commission’s plate. These include:

·        Doubling the fee for grave openings and closing from $250 to $500, to raise an estimated $8,000 in revenue. Webb said a weekend funeral now costs the city more than $180 in salaries, benefits, equipment and fuel costs.

·        Boosting the antenna and property use fee in a revised franchise agreement with Mediacom. The fee is now $150 per month, and city staff recommends it be raised to $2,000, the same as mobile telephone companies, for a $22,200 annual revenue increase.

·        Adding a $1 stormwater utility fee to monthly water and sewer bills. For 1,736 customers, this translates to $20,832 more in annual revenue.

·        Adding a $100 reservation fee for using Lafayette Park. With an average of 40 per year, this would yield estimated annual revenue of $4,000.

·        Requiring the annual registration of the city’s 124 golf carts, at a fee of $25 each, which would bring in about $3,100 per year.

·        Increasing the fee for renting the community center from $100 to $150, and the recreation center from $75 to $100, with a $50 fee for the state and non-profit groups, and half-price for city employees’ immediate family. These hikes would bring in about $4,500 more in annual revenue.

·        Raising the fees for rezoning, variance, special exception and comprehensive plan changes, from $100 to $250 plus mailing costs. This could bring in about $3,000 more per year.

·        Increasing the cost of getting an occupation license. These fees were last raised in 2005, and would go up by 25 percent, with a minimum 3 percent annual increase pegged to the consumer price index. Estimated revenue from the change would be about $9,375 per year.

·        Raising building permit fees from the current minimum of $25 to $75, for an estimated revenue boost of $3,000 per year.

            Webb said that the user fee hikes would bring the city more in line with other municipalities, and would be in keeping with the costs of its operations.

            City staff also has recommended the water and sewer department cease to mail out late notices for its utility bills, saving about $2,500 per year. They also want to implement a $25 service activation fee, add a $25 fee for off-hour call-outs, and a $100 fee for damaging city property such as water meters; and raise the fee for returned checks from $25 to $35, all of which would bring in about $10.000 more per year.

Committee Proposes 3% Pay Hike for City Workers

The citizens committee came out in favor of a 3 percent pay hike for city employees, who last got a raise two years ago. “They’re really falling behind fast,” said Philyaw.

Because workers on the low end of the pay scale are being impacted more heavily as food and fuel costs rise, the committee recommended that all employees be given a minimum $1,000 annual raise.

The committee also outlined budget projections of a $1,200 or $1,500 across-the-board pay increase which, if enacted, would leave the city little revenue left over after expenses. A 3 percent pay hike would yield about $16,520 in revenue over expenses, Mathes said.

The commissioners said they plan to consider a proposal made by Dosik to implement an employee salary policy, similar to other government entities, which would put in writing specific annual increases, pegged to performance, the inflation rate or other ongoing criteria. He said this would eliminate the need to have to revisit the pay hike issue with each budget cycle.

In outlining the various departmental budgets, Webb noted that two employees, including retired police chief Anderson Williams, have not been replaced, thus saving money. She also said the decision to have the city operate the water and sewer departments beginning this summer, rather than a private contractor, could save the city about $183,000 annually.

Police Chief Bobby Varnes made the biggest cuts among department heads, dropping the cost of operating the police department from $732,000 last year to about $636,200 next year, if the pay hike is approved.

The street department, which also lost an employee, dropped from $314,640 to $291,760, while most of the others either stayed steady or went up modestly due to increased costs of operational supplies.

“There were some serious cuts there,” said McCoy. “This is a streamlined budget, a bare bones budget.”