Tax rate stays the same

The City Commission did not raise taxes for the 2011/12 fiscal year, but the usually quick second reading and final approval meeting on the millage rate and budget for FY 2011/12, was an unusual one in several aspects. Usually, the meeting is not televised, because it's a quick reading of the ordinances and a vote, with almost no discussion. But City Manager David Recor, announcing the meeting would be televised so that the public could hear the truth, made a presentation from the podium, characterizing as "dire" the city's financial health, not for this year, but in 2013 and 2014. He listed Citizens Budget Advisory Committee recommendations and characterized those not acted on as unrealistic and unnecessary. He announced the resignation of a valuable department head, as a symptom of low staff morale, and later in his remarks he asked the commission to wish Jon Ward well. In their discussions, Commissioners Alexander and Sessions supported Recor's remarks, but Mayor Benton, and Commissioners Becht and Perona did not. The final vote was 5-0, however, to keep the tax rate the same, even after Recor ask that the Commission at least consider the roll back rate for one year only, saying if they don't need it they'll give it back to the citizens.

Read about the meeting here:

http://www.tcpalm.com/news/2011/sep/26/fort-pierce-tax-rate-unchanged-despite-city/

Anthony Westbury on the CFP and FPUA

Anthony Westbury: Fort Pierce, FPUA need to talk more, build trust

Staff Reports

Originally published 05:36 p.m., September 21, 2011
Updated 05:36 p.m., September 21, 2011

Polite but dysfunctional.

Rather like family members who don't talk to each other unless they absolutely have to, the Fort Pierce City Commission and Fort Pierce Utilities Authority haven't been exactly close for a while. In fact, I can't detect much cooperation between two organizations that should be joined at the hip.

Mutual mistrust has been simmering for a year or more since the city accused the FPUA of holding back some of its annual transfer payment. After months of argument, the two entities reached a settlement where the FPUA paid $200,000 to the city. The experience seems to have left a bad taste in mouths on both sides.

A month ago, I wrote about the latest salvo the city lobbed in the utility's direction.

Apparently, the $4.9 million annual payment the FPUA makes to the city is not enough for some at City Hall. Under the terms of the city charter, the city is entitled to 6 percent of the gross revenues generated by the FPUA.

City Manager David Recor and Finance Director Gloria Johnson, however, have decided that power cost adjustment payments (which reflect the ever-changing price of fuel to generate electricity) should also be subject to the 6 percent rule. Gaining that extra few percent would add $1.5 million to the city's bottom line for fiscal year 2012.

The FPUA has always maintained the PCA is a "pass-through" charge; it does make any profits on it, so why should it be "taxed" on it?

However, Recor and City Attorney Rob Schwerer claim the city is being shorted. Schwerer is also of the opinion that some "tweaking" of the language of the city charter is all that's needed to make the changes without a formal voter referendum.

Not so, according to FPUA's attorney Rupert Koblegard. He's convinced the proposed change would require a public vote.

Should it come to that, it's no slam-dunk the electorate would say yes. Koblegard at a FPUA board meeting this week raised the possibility the city could be faced with a class-action lawsuit if the deal results in higher electricity rates.

The city came up with its plan at a hastily organized morning meeting a few weeks back. It was so sudden, the FPUA board hasn't had time to fully discuss the issue, so the utility will hold a public workshop next week to examine its options.

Neither side is entirely blameless in all this.

The city, faced with a budget shortfall, seems to be looking to the FPUA like a rich uncle who can bale it out. Some city officials have long felt the FPUA holds back too much money in its reserve funds. FPUA officials counter they'll need those large reserves if a hurricane strikes.

There's been criticism from some city commissioners that the utility hasn't made as many reductions in budgeting or staffing as it might have. There's a suspicion the FPUA has a lot more fat still to cut. I'd say that's also true of the city, which should be looking harder at its own finances before trying to grab someone else's money.

I hope all four city commissioners will find the time to attend next week's workshop. The mayor has to be there as an FPUA board member.

It's high time the two sides sat down and hammered this out. If they don't, it's clear who will suffer the most: the poor, beleaguered rate payers. Fort Pierce has more than its share of poor customers who cannot bear the higher electric bills this money grab might entail.

Raising rates to pay for all this could also have adverse impacts on FPUA's commercial customers, who already are saddled with higher rates than their residential counterparts. Fort Pierce has far too many empty commercial properties as it is. Let's be very careful introducing new charges that might accelerate that unfortunate trend.

We need an open forum to discuss all these ramifications. A plea to both boards: More sunshine, please.

Anthony Westbury is a columnist for Scripps Treasure Coast Newspapers. This column reflects his opinion. For more on St. Lucie County topics, follow his blog at tcpalm.com/westbury. Contact him at 772-409-1320 oranthony.westbury@scripps.com.

http://www.tcpalm.com/news/2011/sep/21/anthony-westbury-fort-pierce-fpua-need-to-talk/

FPUA September 20, 2011 Meeting

The Fort Pierce Utilities Authority discussed the City of Fort Pierce's move to increase the transfer and agreed to meet September 27, at 2 PM for a workshop on how to respond. Board member, Mike Perri, expressed serious concerns about how the increased transfer would impact the utility's ratepayers, as did Board Chairman, Darrell Drummond. FPUA Attorney Koblegard warned the FPUA Board of the possibility of a ratepayer class-action lawsuit, if the City of Fort Pierce tried to increase the transfer with a change in the charter without a referendum. The utility also agreed to increase the power cost adjustment by $1 because of the projection of increases from its power supplier,FMPA. The staff requested a $2 increase. FPUA is one of 15 companies in the FMPA All-requirements consortium.

See TC Palm for coverage of this meeting.

http://www.tcpalm.com/news/2011/sep/20/fort-pierce-residents-will-see-power-cost-in/

Fort Pierce residents will see power cost increase in October

By Laurie K. Blandford

Tuesday, September 20, 2011

FORT PIERCE — Residents will see a $1 power cost adjustment on their Fort Pierce Utilities Authority bills next month.

The authority's board voted 3-2 at its Tuesday meeting to increase the adjustment from $34 to $35 per 1,000 kilowatt-hours for October. The board plans to decide at its Oct. 18 meeting whether to change the adjustment again for November.

Board members Bob Summerhayes, Michael Perri and Pamela Cully voted for the $1 increase while Mayor Bob Benton and Chairman Darrell Drummond voted against it.

"I don't feel that we should wait (to increase the rate)," Cully said.

The authority's finance director, Nina Hurtubise, said staff recommended a small increase to the adjustment because of increased power cost projections for the next year from the authority's power provider, Florida Municipal Power Agency. The adjustment covers the fluctuating price of power.

Hurtubise said staff had recommended a $2 increase beginning next month. The board voted 3-2 against that amount. Perri suggested the compromise of a $1 increase.

The authority has about $2 million saved for projected power cost increases, Hurtubise said. The projected cost of power by the agency is $48.65 per 1,000 kilowatt-hours in 2012 and $43.98 per 1,000 kilowatt-hours in 2013.

The authority's director, Bill Thiess, said the agency originally needed more power when it planned to build a new unit in Kissimmee.

When the economy took a turn for the worse, the agency had less need for the extra power. However, Thiess said, the agency's cost to the contractor to get out of building the new unit would have been "enormous." So the unit was built and is now online, but has yet to meet its anticipated returns.

Therefore, the 15 entities across the state to which the agency sells power are covering the increased power costs.

Benton said the agency's investment shouldn't keep costing the authority money, which is covered by authority customers. "I don't feel like we should be bearing the brunt."

South Beach Bridge Reconfiguration from St. Lucie TPO

The St. Lucie Transportation Planning Organization presented information on the South Causeway Bridge Reconfiguration Study today at the Riverwalk Center in Fort Pierce. About 60 residents attended, and the discussion was often spirited. Most attendees did not favor reducing the number of lanes on South Beach bridge for safety, traffic or evacuation reasons. Several bridge walkers and cyclists attended and gave testimony about the safety hazards of walking and riding bicycles currently on the South Bridge. Many attendees spoke against the reconfiguration because of the $1 million rough cost estimate, especially now during the economic downturn. The St. Lucie TPO has information on its website on this proposal.: http://www.stluciempo.org/. Commissioners Edward W. Becht and Reginald Sessions serve on the TPO from the City of Fort Pierce. Commissioners Rufus Alexander and Tom Perona are alternates.

http://www.tcpalm.com/news/2011/sep/17/residents-argue-for-against-south-causeway-plan/

Residents argue for, against South Causeway Bridge plan in Fort Pierce

By Cathy S. Reeder Special to Treasure Coast Newspapers

Saturday, September 17, 2011

FORT PIERCE — More than 75 local residents and bridge users debated an early conceptual plan to rebuild the South Causeway Bridge on Saturday at the River Walk Center in Fort Pierce.

"It was a great meeting with great ideas, and we'll go back and consider each of them," said Peter Buchwald, executive director of St. Lucie County Transportation Planning Organization, which sponsored the two-hour public input meeting. "We're very early in the planning stages on this."

The plan would turn the current four-lane bridge with 4-foot barricaded sidewalks into a two-lane bridge with barricaded 12.5-foot bike/pedestrian lanes. During hurricane or nuclear evacuations, the bike/pedestrian lanes would be used for vehicle evacuation and emergency vehicles, transportation planners said.

That roughly $1 million configuration is the safest when vehicles, pedestrians and cyclists use the bridge at the same time, said Kimley-Horn traffic engineer Stewart Robinson.

Robinson said the local roads leading to the causeway already are two-lane, and making the causeway two lanes at current traffic levels would place it at 75 percent capacity.

Some residents were not convinced.

"I think we're going backwards instead of forwards if we're taking four lanes down to two on the bridge," said Mike Greene, a 39-year resident of South Beach. "Why would we make a lot of people suffer to give a very few people these improvements?"

He defined "suffering" as sitting through several traffic lights with no way around fender benders or to let ambulances get by, or to deal with other everyday traffic problems.

A younger resident countered that thought. "I would be one less car in that man's traffic jam if it were safe to come over the bridge on my bike," said Lorae Simpson, 25, of South Beach. "I want to ride my bike to work, but it isn't safe the way it is. I like this plan."

Planner Lisa Frezier of Kimley-Horne said current cyclist and pedestrian use of the bridge is not an adequate measure of who would use the facility once it's safer and easier to use. She also said the local economy would feel a direct positive impact from connecting more modes of transportation between Hutchinson Island to downtown Fort Pierce.

Peter Harrison, a land manager, argued a differing point. "It's not right to shift the use of this bridge when people in the condos there paid tens of thousands in taxes and development fees to build the four lanes. They want to use their cars to get to restaurants and movies and shopping. They don't want to use bicycles."

Cyclist Charlie Hayek, a South Beach resident, saw the project as more than a local issue. "We are trying to reduce our carbon footprint. We're trying to get people out of their cars, and ride bikes and walk," he said.

TO SHARE YOUR OPINION

The public input period for the South Causeway Bridge continues through early November. Send your written comments, along with your name, address, and (optional) phone number, to:

definie@stlucieco.org

St. Lucie Transportation Planning Organization

2300 Virginia Ave.

Fort Pierce, FL 34982

772-462-2549 fax

Flag Ceremony Honors 224th Anniversary of Constitution

September 17...Today I attended the Flag Ceremony in commemoration of the 224th anniversary of the framing of the US Constitution. Held in conjunction with the Downtown Farmers' Market of Fort Pierce at Marina Square, the Color Guard was provided by the US Coast Guard. St. Lucie County Commissioner, Frannie Hutchinson, was the guest speaker. The 20-minute colorful and patriotic ceremony was sponsored by the Cora Stickney Harper Chapter of the National Society of the Daughters of the American Revolution.

FPUA Revenue Comes from the Ratepayers

http://www.tcpalm.com/news/2011/sep/12/fort-pierce-considers-ways-to-collect-more-fpua/

Fort Pierce considers ways to collect more FPUA revenue without rate increases

By Eric Pfahler

Monday, September 12, 2011

FORT PIERCE — Fort Pierce Utilities Authority Director Bill Thiess' plan to put $1.5 million into city coffers wouldn't require a rate increase, but residents would not receive a decrease planned for April either.

Thiess presented options to city commissioners on how the authority could send more money to the city, but he's looking for more time to delve into details.

Commissioners are expected to discuss the potential transfer further at their meeting Oct. 17, while FPUA board members could discuss the issue Sept. 20.

At issue is the transfer fee the city collects annually from the FPUA.

In 2010-11, the city collected $5 million from the FPUA. The city is supposed to collect 6 percent from FPUA revenues, but the two sides disagree on what is considered revenue. Historically, the city has not collected money brought in from the power cost adjustment, which gets flipped straight to Florida Municipal Power Agency, Thiess said.

The power cost adjustment is part of the bill and covers the fluctuating price of fuel. The adjustment makes up $34 of the bill for a ratepayer using 1,000 kilowatt hours, which is roughly the average monthly residential electric use.

City officials are considering clarifying the definition of "gross revenue" in the city charter to include the power cost adjustment. The money could help offset future city deficits and lower the property tax rate.

But commissioners plan to take more time to go through the options presented by Thiess and consider others. Thiess said the $1.5 million would affect the base rate — now $42.32 per 1,000 kilowatt hours — by $2.80. That would eliminate the planned decrease in April, Thiess said.

Two City Commissioners — Eddie Becht and Tom Perona — said they hope to take some of the politics out of future rate increases. The two discussed the idea of using a state index to help determine future rates. The Florida Public Service Commission creates a "deflator index," which serves as a way to measure inflation in the energy world. If the two commissioners' proposal is approved, the FPUA could raise rates by a percentage or all of the index without needing city approval.

Details on the proposal have not been finalized, but the index is expected to rise no more than 1.5 percent per year during the next five years.

CFP Pursues Increased Transfer from FPUA

September 12....The City of Fort Pierce (CFP) Commission met today to discuss their pursuit of an increased transfer amount from the Fort Pierce Utilities Authority (FPUA). CFP City Manager told the Commission that this is simply a matter of clarification of what the transfer amount should be and asserted that the FPUA is an "enterprise fund" of the City. FPUA Director Bill Thiess told the Commission that there may not need to be an immediate rate increase, but that planned electric rate decreases would not be feasible if the increased transfer of $1.5 million occurred. The City needs increasing amounts of money to pay down their debt at an annual rate of about $5 million per year in the coming years. The increased millage rate proposal passed at the September 6 meeting was not discussed at all, but will be the subject of a September 19 and September 26 CFP commission meetings. Members of the FPUA Board attended today's meeting as guests. FPUA Board Chairman, Darrell Drummond, addressed the Commission, saying that the FPUA Board would be discussing the impact of the transfer at its next meeting, September 20, 2011 and must act in the best interests of the ratepayer.

Bottom line: Calling it a "clarification" doesn't take away the fact that the money, $5 million a year in the past, and $6.5 million a year in the future, came from the ratepayers and will come from them in the future.

Millage Rate, FPUA Charter Change

September 6, 2011... Three City Commissioners voted to raise the millage rate: Alexander, Perona and Sessions. Two did not: Becht and Benton. Two more public hearings will be held on the millage rate. Commissioners also talked about a charter change to get more money from the Fort Pierce Utilities Authority (FPUA), but postponed action until October 17. The FPUA presented their budget and Commissioners questioned certain line items, including a 2% salary increase in 2012. City of Fort Pierce has projected a 2% tax increase 2013.
I was at the meeting and gave testimony. Also at the meeting were a large group of city activists and church leaders who are organizing a local chapter of PICO, a national network of faith-based community organzations.
Read about the meeting here: http://www.tcpalm.com/news/2011/sep/06/fort-pierce-gives-preliminary-ok-to-increased/

My Testimony

My name is Linda Hudson. I live on Frances Court in Fort Pierce.

For two years, your Citizens Budget Advisory Committee made recommendations for the City and the FPUA to reduce spending and NOT raise taxes or rates.

We did NOT recommend a millage rate increase.

We DID recommend reductions in personnel costs that would be fair to the employee and the taxpayer, save jobs and ensure that the employee retirement fund would be solvent in the future. The Committee recommended that you reduce costs in the following areas: legal, pension, insurance, sick pay, vacation pay, overtime, car allowances, technology and travel. We did NOT recommend cutting salaries or cutting jobs. We did NOT recommend reductions in services to your city residents.

You do not have a revenue problem; you have a spending problem. Raising taxes or rates is a short-term fix for the spending addiction, but it doesn’t break you of the spending habit.

If you raise taxes and rates, you increase the costs to the business community and the residents. Businesses are already struggling to stay alive. Property values will decrease even further if you raise taxes and rates. Not only will new business not come to Fort Pierce; the businesses that are here now will close their doors. What you should be doing is developing a way to help Fort Pierce businesses and citizens prosper, because their prosperity helps both the city and the utility.

Over many years, the ratepayers of your public utility have given you a lot of money. We ratepayers routinely subsidize the city by $5 million. Some ratepayers don’t even live in the city and they get to pay even more. With your proposals tonight, you’re telling your own utility that you want more money, money that has nothing to do with the cost of electricity, and money that came from ratepayers like me.

You’re also proposing a tax increase. You have racked up $95 million in debt and you must repay $5million every year. Over the years, while the debt increased, the city refused to make meaningful, long-term spending cuts. You engaged in several rounds of refinancing the debt, hoping the day would never come that you would have to pay it. Because of the increasing costs of debt and personnel, you have abandoned capital spending, money that should be going to keeping our city safe in the future.

Many people in Fort Pierce and St. Lucie County have lost faith in government and feel disconnected and at odds with those in power. Elected and employed public servants seem to be living in isolation from what is happening in the outside world. People outside the government inner circle are truly dumb-founded by your words and deeds.

Fort Pierce needs A New Beginning. Start fresh tonight by measuring every vote by this standard: Is this vote protecting our citizens and serving all the people in Fort Pierce? Put the private sector ahead of the public sector and by doing that, you will enhance your revenue streams. Do not raise taxes or increase utility rates, which will further depress the economic well-being of Fort Pierce. Find a new beginning for Fort Pierce tonight, by putting those who elected you back into your thoughts and deeds.

Open letter to City of Fort Pierce Commission and Staff

Do not increase taxes, before you make meaningful cuts in your spending by acting on the City of Fort Pierce’s Citizens Budget Advisory Committee recommendations that will reduce the city's costs immediately and in the future:

Reduce legal costs by $250,000; Reduce health care costs; Eliminate the annual sick leave conversion bonus; Establish sickleave payout upon retirement to 620 hours (6 weeks); Establish the retirement multiplier to 2.5 for all city hall employees (except police); Cap pensions to75% of base pay, and eliminate vacation, sick and overtime amounts (exceptstate-mandated overtime inclusion); Increase the retirement age and the number of years of service required; Increase the vesting period to ten years. Reduce Commission pay and review car allowances, technology, and travel for Commissioners and employees to make sure they’re justified.

Your debt repayment goes up to $5.2million in 2014. Most of this debt is due to the 2007 Sunshine Loan that you were warned the City could not pay back; you then shifted the responsibility to the FPRA, which is now unable to pay it either. This debt payment exists because of expensive property purchases and building a city parking garage. The staff and the commission must now assume responsibility for their speculative behavior by coming up with money that does not come from the taxpayer or the ratepayer to pay your debt.

Higher taxes, higher utility rates, or cut spending?

The City of Fort Pierce is seeking increased revenue streams, and Commissioners, especially those facing elections, are proposing a tax increase. City of Fort Pierce Finance Director, Gloria Johnson has also steered them toward a place she deems rich in cash: the Fort Pierce Utilities Authority. She said she identified FPUA cash reserves that would pay the city $1.5 million more than it did this year. The FPUA says its cash reserves are accounted for in the annual rate study and if the city is successful in getting more money out of the FPUA, the utility will have to increase rates.

The Commissioners are faced with the dilemma of increasing taxes and risking an angry electorate, or increasing the transfer from the FPUA to the City, this year at $4 million, and let the ratepayers be angry at the FPUA. The taxpayer and the ratepayer are one and the same, for the most part, so either way, the lowly resident and business owner will be asked to pay more. Increasing taxes or utility rates will hasten the local economic decline, and will not address the real problem: excessive spending

According to Finance Director Johnson, the City needs the money for future budgets, especially in 2013 and beyond, for increased debt service payments. The total debt service payment of the City of Fort Pierce will be $5,278,827 in 2014. The City's debt is due, largely, because City Commissioners purchased property at top price, such as Jetty Park and Fisherman's Wharf, plus other properties, and built a parking garage and retail space behind city hall. Now, the taxpayer, or the ratepayer, is being asked to pay for their spending spree. .

There is a way that the taxpayer and the ratepayer could be treated fairly. Do not raise taxes or utility rates, but reduce personnel and other costs. Salary and benefit levels at the City and the FPUA have become increasingly generous and cannot be sustained. The private sector has had to tighten its belt, and so must government.

Read about this issue in the news:

http://www.tcpalm.com/news/2011/sep/01/fort-pierce-commissioner-becht-may-hold-key-to/

http://www.tcpalm.com/news/2011/aug/12/fpua-rates-could-go-up-if-fort-pierce-asks-for/

http://www.tcpalm.com/news/2011/aug/17/anthony-westbury-storm-over-utility-payments/