Charter committee reviews debt policies
Six more articles from the Town of Fort Myers Beach charter -with emphasis on one particular one-received an overall evaluation from the appointed Charter Review Committee last week.
Financial Procedures under Article XI was reviewed first and foremost with debt services and limits related to a general obligation receiving the lion’s share of the discussion. Committee members were admittedly confused by the language in Section 11.03 (b) that dealt with the issue.
Discussions involved conditions to be placed on a debt. Existing limitations include the repayment in no less than 36 months unless mandated by state or federal governing agencies.
The Town Charter states a referendum is needed for a general obligation bond or an ad valorem bond, but not needed for revenue or improvement bonds or to incur a special assessment debt.
“I’m assuming the reason we are giving (the discussion) this much time is because there is a push for us to own, create or have a Town Hall,” said committee member Jay Light.
Town Audit committee members Jim Rodwell and Jim Steele were invited to participate in the financial discussions. The audit committee was then tasked to do more research on the subject of debts.
Rodwell explained each of the debts and their definitions in terms of needing referendums and which needs to be capped.
“Taking both water projects into account, which will probably close to $40 million in cost, how would you cap that? You don’t know what it is going to cost,” he said.
Certain debt limitations were said to hamstring the Town. Committee member Dan Hughes stated the Council he served on between 2000-04 got around the limitations by creating a separate corporation when the water utility system was purchased.
“We got bonds through that entity,” he said. “I feel we should eliminate debt restrictions on revenue bonds.”
“I don’t think we want to put ourselves in a position to find ways around,” added committee member Miffe Greer. “To me that doesn’t make any sense.”
Raising the millage rate to increase revenue was considered. Assessing island property values would create justification.
“We are hamstringing ourselves by not increasing the millage rate,” said Rodwell. “I think the Town would be justified to increase the millage rate a small amount to start bringing a little bit more of a revenue stream for the Town.”
The Audit committee has been tasked to conduct more research in to the specific Town financials and help in generated language for suggestive changes.
Discussions also involved Town reserves and what may be needed in the coffers in case of an emergency.
“As a rule of thumb, we talk about 15 to 20 percent but, in reality, you often cannot dictate that,” said Town Manager Don Stilwell. “We are a very small town with a very tight budget.”
Attorney Derrick Rooney recommended that Council should develop debt policy by ordinance.
Other articles under review that session included Article VI: Town Manager; Article VII: Town Clerk; Article VIII: Town attorney; Article IX: Administration Departments and Article X: ordinances and resolutions.
Last month, the committee reviewed the first five articles of the Town Charter. Once all articles are reviewed and public comment is well heard, the committee will make suggestions on change of language.
To review all current documents related to the Town Charter, go to www.fortmyersbeachfl.gov and click on “Your Government” to find Town Charter.
“I think our need to explain is critical,” said Greer. “I think it is critical we make the charter clear and user friendly.”