FELLSMERE — While the City of Fellsmere plans to keep property taxes the same as last year, water, wastewater and stormwater fees are expected to increase.
Tied to the consumer price index, water and wastewater rates will increase 1.57 percent, so long as the Fellsmere Council approves the final rates at its next September Council meeting, scheduled for Thursday, Sept. 17, at 6 p.m.
The Council held the first of two required hearings last night, which generated no feedback from the public.
The stormwater fee is expected to remain $4 a month for residential customers, City Manager Jason Nunemaker told the Council. However, non-residential customers can expect what could be a substantial increase.
Non-residential customers will pay $4/month multiplied by the number of equivalent development units (or per 3,250 square feet of impervious area).
They will be able to petition the City for as much as a 50 percent credit based on their amount of on-site stormwater retention and any water treatment they provide.
A customer on N. Broadyway, for instance, would most likely not qualify for a credit as the development lots are too small to accommodate the business, parking, and water retention, Nunemaker said. However, a business – such as Dollar General – on County Road 512 with a larger lot, could qualify for a large credit due to having the ability to handle its own stormwater run-off on-site.
Notices regarding the proposed change went out in customers’ water bills, according to Nunemaker, who added that he expects to get some feedback from non-residential customers between now and the final public hearing.
Funds generated through stormwater fees are to be used for stormwater and water quality projects throughout the city. Funds can be used as local match dollars to various grants the City has and plans to apply for as well.
During Thursday’s meeting, the Council approved its property tax rate and budget – for both the City and the Fellsmere Redevelopment Area – each item will come before the Council again later this month for final approval.
With property values up 5.7 percent, the Council opted to set the tax rate to what is called “roll-back” – the rate that would collect the same amount of revenue as the year before.
“We’re climbing out of the hole,” Nunemaker told the Council when presenting the $10.6 million budget.
The budget includes a part-time Public Works employee and a new police officer. The officer’s position will be funded through a grant. The budget also includes a 2 percent merit-based increase for staff as well as a 1 percent increase to the City’s deferred compensation package for staff.
Nunemaker pointed out to Council that the budget includes nearly $726,000 from the Discretionary Sales Tax fund – the voter-approved 1-cent increase to the sales tax. The 1-cent sales tax issue will be on the November 2016 general election ballot to determine whether sales tax in Indian River County should remain 7 percent or drop back to 6 percent.
“It potentially might not be there,” Nunemaker said of the DST funds, which are used to fund infrastructure improvements such as drainage, road paving and the like. “You can imagine what would happen if we didn’t have this.”
Nunemaker explained that the Council would have to either raise taxes accordingly to continue funding such projects or do without.
The second and final public hearing on the City’s budget, tax rates and utility fees will be held on Sept. 17 at 6 p.m. with the regular Council meeting to follow at 7 p.m.
Fellsmere City Hall is located at 22 S. Orange St., Fellsmere. Council Chambers are located in the blue modular building nearest County Road 512.
