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Published by the Department of Public Affairs, City of St. Augustine. Florida  August 30 2011

Spanish Quarter in budget crunch

   

    A hesitant City Commission last week agreed that the Colonial Spanish Quarter interpretive section should be closed at the end of September and proposals for subletting to the private sector be gathered "as soon as possible."Budget graphs

   City Manager John Regan said during a budget workshop there are several interested private companies, one of which would invest $1 million and require a four to five month shutdown to ready its program.

   Commissioners Billy Leary and Errol Jones favored the closing, while the remaining commissioners had varying degrees of hesitation. Mayor Joe Boles didn't like the idea of losing the momentum of the Explorer Passport program linking ticket sales with the Castillo; Vice Mayor Leanna Freeman urged keeping the Quarter open for three months while proposals are studied, and Commissioner Nancy Sikes-Kline continued to favor maintaining the city program.

   Discussion on the Spanish Quarter filled the second day of a budget workshop as commissioners and staff tried to balance a loss in the 2011-12 budget of $982,000 in revenue ($720,000 in property tax loss) with continuing service needs.

   The modified proposed budget goes to the City Commission in public hearings September 8 and 22.

ParkNow Card 

New revenue in VIC garage 

   City Manager John Regan proposed, the city's Parking and Traffic Committee endorsed, and the City Commission agreed to a fee adjustment in the Visitor Center's parking facility to raise an estimated $1,050,000 in new revenue.

   Aimed at visitors while encouraging ParkNow card users, primarily residents, the all-day rate would increase from $7.50 to $10, with a rate of $1 all day for ParkNow card users. The monthly "proximity" card remains at $32.

   The plan is based on a year-long study by the facility staff, which estimated that more than 91 percent of visitors are from outside the city and county.

   That additional annual revenue would be applied to debt service on the parking facility ($450,000), the city's $2 million share of the $7 million seawall project ($207,000 a year for ten years), remodeling of the Visitor Center for exhibition space ($65,000 a year for three years), and the 450th commemoration $328,000 a year for four years).

  
Sign on for Report
 
Previous Issues

Budget shift from Heritage to 450th

   Under the current plan, budget focus will shift from the Heritage Tourism Department to the 450th commemoration, with $328,000 going to a combined heritage tourism and 450th program through 2015. Taberna poster

   The Colonial Spanish Quarter will remain open for walking through, and part-time staff will be brought on for school tours. The more profitable Taberna and gift shop will remain open.

   The position of Heritage Director Dana Ste. Claire will be discontinued, with activities of his Department shifted to Assistant City Manager Tim Burchfield.

   City Manager John Regan said, "I don't intend to lose Dana. His expertise is valuable across the board, and we want continuity in what we created."

   Ste. Claire, whose salary is $88,000, has directed improvements in the Quarter and its marketing efforts for the past two years.

Hard cuts for lean budget

    The city budget workshop took two days for the first time in recent history, but "these are times like no other we've faced in recent history," City Manager John Regan said.

   While other areas of the city's budget are "enterprise funds," their expenses covered by user fees, the city's General Fund is supported by a variety of sources, with 42 percent from property taxes. The proposed 2011-12 budget is $22,594,244, a decrease of $692,462 from this year and nearly $1.5 million from 2009-10.

 

Regan told commissioners the budget was designed for:

ü  no increase in millage

ü  minimized use of reserves for recurring operational costs

ü  minimized increase in user fees

 

These are the cuts and resulting savings to cover tax revenue decrease of $720,264:

  • four positions eliminated ($222,197)
  • three positions filled with lower paid employees through early retirement program
  • deferred maintenance on structures ($171,000)
  • commitment for fire truck reduced $100,000
  • workers compensation reduced $98,000
  • negotiated no increase in medical insurance
  • eliminated $40,000 in planning & building professional services

 

Bond issue funds many projects

   The city's $18 million bond issue approved in March is included in the 2011-12 budget. Actual amount of the bonds is $15.4 million, the balance in fees and closing costs.

 Marina breakwater plan

Bond proceeds in the General Fund:

· Riberia Street peninsula bank stabilization $800,000

· Wayfinding signage for downtown $100,000

· Street resurfacing/sidewalk repairs $250,000

· Island fire station and other miscellaneous $40,000

 

In the Utility Fund:

· San Sebastian river force main $625,000

· Volusia/Pearl Street upgrades $510,000

· King Street drainage phase 2 $340,000

· Utility projects, priority a $3,525,000

· Riberia Street phase 1 $1,099,125

· Riberia Street phase 2 $1,922,000

 

In the Stormwater Fund:

· Riberia Street phase 1 $1,800,875

· Riberia Street phase 2 $1,888,000

 

And in the Marina Fund:

· Breakwater $2,500,000

History's highlight 

City budget woes not new

  4 years, 10 days to St. Augustine's 450th anniversary 

  

   From Augustine.com

    A century ago, federal funds were not available to local governments for the building of roads and bridges, and it was to another source that many municipalities had to turn.

   In the case of St. Augustine, Henry M. Flagler was the benefactor and he, like the federal government in modem times, was not always pleased with the way his plans were carried out. Henry FlaglerJ. E. Ingraham

   In 1906, Mr. Flagler wrote to his third vice president, J. E. Ingraham, complaining that the city was not keeping the streets in good repair and asked for "a little measure of public spirit, at least enough to keep the only street we have to the railroad in good condition."

   Mr. Ingraham looked into the situation and wrote to Mr. Flagler, explaining to him that, at least in his opinion, the city was doing the best it could with what it had to work with. He pointed out that only the year before, the tax rate had been raised from 1.5 to 2 percent and that this managed to bring into the city's coffers a total of $53,085.42, more than double the revenues for the year 1892.

   Twenty years previously, Mr. Flagler had built the very streets about which he was complaining (.89 miles - 4,700 ft. of wooden block streets and 1.19 miles of asphalt).

   To this the city had added 1.55 miles of brick-paved thoroughfares, plus 6.53 miles covered with oyster shells, and they had done this without going into debt or increasing the taxes on property owned by the Florida East Coast Railway. The only really large outstanding obligation was for the water works which had lately been much improved.

   Mr. Ingraham hoped that the new city council, just elected, would be able to do a little better about keeping the city's streets repaired, but he pointed out that St. Augustine was not a wealthy community.

   In his report he said, "St. Augustine is too close to Jacksonville to make much business here, and there are not more than six men who are residents of the city or county who have an income of $5,000.00 per annum, so it could hardly be expected that anything of importance could be carried through without your help."

   Mr. Ingraham closes his report to his boss by reminding Mr. Flagler that in 1859, many years before Mr. Flagler came with his money and his interest in developing the city, the total money brought in by the city in taxes was just $588.07.

   Not much street repair, or anything else, could have been financed in those days.

   James E. Ingraham served as St. Augustine mayor 1914-1920.

   Images: Henry Flagler (left), J.E. Ingraham (right)

The St. Augustine Report is published by the Department of Public Affairs of the City of St. Augustine each Tuesday and on Fridays previewing City Commission meetings. The Report is written and distributed by George Gardner, former St. Augustine Mayor (2002-2006) and Commissioner (2006-2008) and a longtime newspaper reporter and editor.  Contact The Report at gardner@aug.com