CRESTVIEW — According to city department heads, this year's budgeting process could be the last opportunity the City Council has to reverse years of "status quo" budgets that have eroded financial reserves, stymied future planning and halted routine maintenance.
Without increased revenues, the city can no longer afford services expected by residents, the department heads said at a Monday workshop.
City Clerk Betsy Roy said there are three options available to maintain services at the current level now that departments have stripped their budgets to the bare bones.
• Implement the recently proposed fire assessment fee
• Raise water and sewer rates, as recommended several years ago by city consultants
• Increase the millage assessment.
However, three of the five councilmen — Joe Blocker, Mickey Rytman and JB Whitten — had concerns about raising revenue.
UNSUSTAINABLE
Roy said by maintaining the current millage rate, the city general fund incomewould increase only $5,113 in 2015-16. The city can no longer transfer money from the utility fund to sustain the general fund, she said.
"The utility fund itself is not going to have those funds to transfer," Roy said. "We have not raised utility rates since 1993. We have one of the lowest water rates in the county."
Public Works Director Wayne Steele said without money in reserves, the city would be in dire straits if a disaster were to strike.
"How can we get funding to keep going when (Hurricane) Ivan comes again?" Steele asked. "When it came, it cost us $895,000. We had that money in reserves. What are we going to do if that happens to us this year or next year?"
Steele said that previous councils have been reluctant to make difficult decisions to raise needed revenue when presented with similar warnings that the city could face difficulties.
"They wanted to do what we could do to just get by," he said. “Some tough decisions have to be made.”
POOR RESIDENTS SHIELDED
Following the consultants’ recommendation, Councilman Bill Cox proposed modest increases in water and sewer rates he said could raise more than $475,000.
Whitten said the fire assessment fee would be a deterrent to expanding or attracting businesses and may drive small companies out of business or cause them to lay off employees.
When Rytman said proposed increases would hurt low-income residents, Council President Shannon Hayes said the fire assessment included provisions for low-income people to request fee reductions or waivers.
"If we have someone on a fixed income…they're going to be hurting at the end of the year," Rytman said.
"These are the same answers we've been getting for last three or four years," Steele said. "I'm sympathetic. I can make more cuts but I can't provide the same service."
MORE SERVICES NEEDED
Citing Growth Management Department reports saying more subdivisions are being planned, especially in the Old Bethel Road area, Fire Chief Joe Traylor said an additional fire station, firefighters and fire trucks will be needed to maintain the required four-minute response time to the area.
The fire assessment fee offers a means to plan and save for such future investments in equipment and infrastructure, he said.
Police Chief Tony Taylor said the reports indicate thousands of new residents will move to Crestview as the new developments are completed. His department will need more officers and equipment to meet the demand.
"We're either moving forward or we're moving backwards. There is no status quo," Taylor said. "Our contingencies have all been depleted, leaving us vulnerable if a catastrophe should occur. We can't continue on this downward spiral."
"No one likes tax increases or added fees but on the other hand, no one wants to lose services," Taylor said.
Email News Bulletin Staff Writer Brian Hughes at brianh@crestviewbulletin.com, follow him on Twitter @cnbBrian or call 850-682-6524.
This article originally appeared on Crestview News Bulletin: Crestview city department heads: revenue increase is needed now (VIDEO)