Ed. — From the Sunday, May 8, print edition.
COURTHOUSE — The City Council is poised to adopt an FY22-23 operating budget and capital improvement program following a reconciliation process in which the council eliminated a property tax rate increase recommended in the original budget proposal.
The proposed budget would provide funding for stormwater projects outlined in the flood protection bond referendum that overwhelmingly was approved this past year by city voters. The revised budget proposal includes a 4.1-cent real estate tax dedication to pay for this — but without a property tax rate increase meant to pay for debt service on a slate of flood-fighting projects.
The original proposed operating budget for the coming fiscal year planned to use a real estate tax increase to support projects in the $567 million referendum.
The budget would also bring about what is billed as the largest change to the municipal employee pay structure in two decades, a hybrid pay plan and a citywide minimum wage of $15 per hour.
The hybrid plan would be funded by a $32.8 million compensation reserve from the manager’s proposed budget, and it includes a step pay plan for public safety personnel and some other city workers, according to a letter by Mayor Bobby Dyer and Vice Mayor Rosemary Wilson. “The goal is to provide every fulltime and parttime city employee a minimum 5 percent compensation increase,” they wrote in the letter.
“This is going to be a sea change in how we currently compensate employees,” City Manager Patrick Duhaney said on Tuesday, May 3.
The revised budget would reduce a $1.013 per $100 of assessed value property tax rate proposed by Duhaney to $0.99 per $100, keeping the rate the same as in the current budget – though City Councilmember John Moss, who advocated for a smaller rate and proposed an alternate spending plan, criticized this as still equating to a tax hike amid rising assessments.
The council is scheduled to pass a budget on Tuesday, May 10, following the discussion of the budget reconciliation process held at City Hall this past week.
“We had two pressing needs that had to be addressed,” Dyer said during a meeting on Tuesday, May 3. “The first one was the four-cent dedication that the people voted on in a referendum to tackle our number one priority, which is stormwater. We intend to honor that obligation in a lockbox format. … And then, number two, it was brought up many times by the council over the last year or so, is our labor force considerations both in terms of recruitment and retention. But the other thing was fairness, too, in terms of getting a livable wage.”
Wilson, speaking of increasing pay for city workers, said, “It’s a balancing act with finite resources to make sure we look out for the taxpayers but also, this year, it was really important (for) our employees we value so much because they’re the glue that keeps our city running and going.”
When Wilson detailed support for the city compensation plan during the meeting, she paused and added: “I think that deserves applause.”
“Yes, it does,” City Councilmember Aaron Rouse agreed.
Later, Rouse said improving pay for city workers was important.
“I am elated to see this in here, and I know what that means for our men and women who take care of our city,” he said.
Moss criticized the budget proposal as placing an increasing burden on taxpayers during difficult times, and he read a letter to his colleagues that he said came from someone struggling to keep up with rising costs.
Moss said the city’s failure to reduce the tax rate more will be felt by citizens.
“We have missed an opportunity, and many people will pay the price,” he said.
Among other items singled out in the reconciliation letter, the budget would reduce by 2 cents the real estate tax rate funding the Sandbridge Special Service District, which pays for sand replenishment projects in the residential resort community.
“Due to the healthy performance of the hotel tax revenues dedicated to the fund, this reduction in real estate tax revenue is not anticipated to negatively impact the sand replenishment cycle or prevent the current practice of ensuring two replenishments are funded at all times,” Dyer and Wilson wrote.
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What I find lacking in this expose of the two budgets being presented is the noticeably-absent, in-depth discussion of the tax-neutral budget as presented by Councilman John Moss.
Personal observations: John Moss’ grasp of the inner workings of the budget make by comparison, the rest of the Council look like intellectual gnats. I would have kissed the butt of the Norwegian Lady at the Oceanfront if there was a way to get Rosemary on a stage next to Moss and have a debate as to which of the three versions made the most sense and which of the three, held Beach taxpayers closest to their hearts. Ten members of Council talk about family values, but only one values families, and that man is John Moss.