ECWCD may come up with a 20% tax hike
The Financial Advisory Committee recommended to the East County Water Control District (ECWCD) a per acre assessment rate of $107.96 at the budget meeting on June 29.
This represents a 20.22 percent tax increase from the current rate of $89.80.
In the past three years the ECWCD has raised taxes 25 percent. If approved, this would result in a 50 percent tax increase over four budget years from the base of $71.92 per acre.
The committee was prohibited from reviewing pay and benefits, the largest part of the budget.
The Board directed staff to create a budget incorporating the advisory committee’s recommendations.
With the conclusion of the tax certificate sale by the Lee County Tax Collector, the uncollected assessments by the District increased from a budgeted 3.5 percent to 5.4 percent. This will increase the current year deficit by more than $100,000.
The ECWCD commissioners have been unable to reach a consensus on closing the current year deficit or a new budget starting October 1.
Chairman Desmond Barrett said he was willing to increase the assessment if it was necessary.
“I don’t apologize for raising taxes, or lowering taxes,” he said. Vice chairman Neal Horrom noted that “in general, the majority of taxpayers don’t expect to pay more (taxes). They do not want to pay more, even if it’s $2, $5, or $10.
“Commissioner Michael Welsh said he “will not support a rate increase.”
“In a post meeting interview at The Citizen, Commissioner John Boardman said, “I have not seen any evidence yet (those) positions can be cut without detrimental effect.”
“I don’t want a rate increase but given that it would mean staff cuts and service reductions, I do not think I can live with that, we will see what we can do. I do not see the need for a state audit.”
The Board accepted the recommendation of the budget committee to not spend $108,233 authorized in the current budget. But in a laster meeting through a telephone interview, Manager David Lindsay said most of these expenditures would have to be renewed in the next budget for fuel, equipment rental, water quality testing, etc. If fuel costs continue in an upward trend there will be greater costs.”
Vice Chairman Richard Georgian of the committee said that you should “spend money on what you need, not on what you want.”
The District is spending $19,656 on rent for two trailers. Less than this amount could be used to purchase one of the large model home complexes on Lee Boulevard for a more than satisfactory District office at 50 cents on the dollar in the current market and save thousands per year. The committee recommended that a capital improvement fund be established at an assessment rate of $5.22. Currently there is no funding mechanism for projects. This would eliminate using debt. The amount paid in interest could be use for projects, because government has no tax advantage for paying interest.
He expressed his own opinion that at least one administrative position could be cut.
Debt service next year will be $423,063.13.
During the public comment session, Frank Lohlein met a spirited rebuttal by board members Barrett and Horrom. His extended comments were printed in The Citizen last week and are available online.
Kevin Wood said “that the separation plan was not a good idea paying another three and half years and 18-month vacancy.”
Manager Lindsay in his interview said that one person in administration qualifies for an early out and more than 10 field staff. If a person is 62 or older he would qualify for retirement even if he did not have 30 years of service. In addition to retired pay he would get about $12,000 per year for five years for a total of $60,000.
The district has non-core mission responsibility for 22 bridges and many road intersections, and three parks. An example is the Williams Street Bridge.
The next regular meeting will be on July 27 and a budget meeting on August 10 at District Headquarters off of Lee Blvd. on Construction Lane at 6:30 p.m.