City Fees to Increase, Reserves Remain Untouched

Gulfport city leaders are expected to vote as soon as July 17 on City Manager Jim O'Reilly's fiscal year 2013 first budget proposal.

One stark difference between O'Reilly's first proposal last year and this year, is the decision not to dip into the general fund reserves to balance the budget.

The first proposal submitted last July included a transfer of non-recurring revenues of $622,359 from the general fund reserves to the general fund.

This proposal includes several service fee increases to balance the budget and a "roll forward" millage rate increase.

Let's take a look at the numbers:

The Budget

Appropriations:

• $10,506,151 = estimated cost for the City to operate between Oct. 1, 2012 - September 30, 2013.

All funding sources:

• $8,615,374 = estimated revenues the City will collect next fiscal year
• $300,000 = transfers from the Marina PILOT fund
• $467,000 = transfers from the Sanitation PILOT
• $325,000 = transfers from the Utilities PILOT
• $798,778 = transfers from Enterprise Funds

Millage Rate

The current millage rate is 4.0, which equates to $4 per every $1,000. According to O'Reilly, due to the decrease in property values, increasing the rate to 4.039 will generate $2,626,773 in FY 2013. There will be no change in revenue, no loss, no gain.

Service Fee's to Increase

The dollar amounts below reflect the estimated revenues expected if all of the proposed fee increases are passed.

• $115,000: Sanitation Special Pickup Fees
• $10,000: GEMS ride free to offset increased fuel costs        
• $10,000: Implement Special Event Charge/Fees               
• $25,000: Implement Credit Card use Convenience Charge   
• $5,000: Increase Summer Rec Fees to Market Rate          
• $20,000: Adopt Pinellas County Building Inspection Fee structure

Special Pickup

Furniture, mattresses and other single item orders will change from $11.25 an item to $17. T.V. and computer components will increase dfrom $16.87 to $25 each. To view the entire list, see the attached document.

GEMS

Currently, GEMS riders pay $55 for annual registration and $1 for one ride, one way. The increase for GEMS will be $10 per registration and $1 per ride. If the proposal passes, that means it'll cost $4 for a ride to and from a riders home. Gulfport Senior Center Supervisor Sue Frank was present at the workshop and said they had not heard any negative feedback about the proposed increases.

Special Event Charge/Fees

Currently, the City does not recoup costs for co-sponsoring special events held on city strees, parks or facilities (such as the Casino).

The budget includes a $500 charge for major events in city streets and parks. This will include the following events:

1. Chamber of Commerce Springfest
2. So49 Bluesfest
3. Gulfport Marchant Association's Geckofest
4. Antiques in the Park

Credit Card Purchases

Currently the city does not pass on the transaction fee charged by banks for customers to use their credit cards for online city charges, utilities and rental of the casino. The proposal includes adding a transaction convenience fee of $3.75 to each transaction.

Summer Recreation Fees

The proposal includes a 20 percent increase for the 8-week session at the Gulfport Recreation Center. That results in a $55 increase per child, bringing it to a total of $330 per child. According to staff, the current fee of $274 is well below neighboring cities with similar programs.

Pinellas County Building Inspection Fee

The budget proposal includes an increase in the building inspection fee to match what Pinellas County charges. To view the exact dollar amounts, check out the attached document.

What's next?

Gulfport City Council could vote on first reading of the budget presented by City Manager Jim O'Reilly as soon as Tuesday, July 17. If there are more changes, the process could take longer. Council members have to adopt the Operating Budget for the Fiscal Year 2011/2012 before September 30th.