The Santa Rosa Island Authority Board, as a special item on the June 11 Committee agenda, discussed how to solve Escambia County’s problem funding Pensacola Beach fire services.
Beach residents and businesses already pay a higher fee for fire services than mainland residents and businesses. The SRIA pays $206,000 to the County annually to help offset the cost of fire services. Still, Escambia County has a $1.2 million shortfall in funding the beach fire services.
The County’s solution, offered at their May 1 meeting, is to increase the Municipal Service Benefit Unit (MSBU) fee charged to Pensacola Beach residents by 125 percent and increase business fees by 1053 percent.
Escambia County, which is at a $10 million deficit for its mainland fire services operations, plans to increase the mainland residents by 80 percent and businesses by 87 percent.
Beach residents and businesses objected strongly to this inequitable increase at the May 1 County Commission meeting. Commission Chairman Mike Kohler said he had discussed with SRIA Director Burns ways the SRIA could offset the costs.
SRIA Executive Director Mike Burns presented six options to the SRIA Board on May 28. He briefly reviewed the options again at the June 11 meeting. The presentation included raising lease fees, adding fees to overnight stays, paid parking, a fee on sales and allocating tourism taxes to cover the shortfall.
SRIA Board Member Bruce Childers reminded his fellow board members of the expenses that business owners and residents already bear are mounting. He supports a way to equalize the fire fee across all county residents and businesses.
Escambia Commissioner Ashlee Hofberger, whose district includes Pensacola Beach, proposed a county-wide MSBU where each resident pays the same amount and each business will be assessed the same fee per square foot.
SRIA Board Chairman Jeremy Johnson supports that concept of a consistent and equal MSBU.
“We are all citizens of Escambia County. There should not be a differentiation between rates for the mainland and the Beach. It needs to be the same rate.”
In Burns’ presentation, he made clear that a reasonable option was to raise lease fee collections and do away with paying the MSBU. This would change the policy put in place in 2016. At that time, leaseholders were paying both lease fees and ad valorem taxes, and as taxpayers felt they should receive services for those taxes. In an interlocal agreement, Escambia County assumed responsibility for the Beach’s public works and public safety departments, and the SRIA decreased lease fee collections by 50% that year.
If the SRIA Board chooses to increase the lease fee collections, it is estimated to generate an additional $3.3 million. The funds would remain under the SRIA’s control, and after the fire services expense is met, any excess could be used on island needs. The fire MSBU would no longer be charged to beach residents and businesses.
District Four Appointee Elizabeth Timothy supports an increase in the lease fee calling attention to the fact that for some leaseholders this option would result in a savings. She highlighted the SRIA would control the funds, earn interest and that excess funds could be used for island projects.
Jerry Watson, a longtime board member, recognized that this was not an easy task for the SRIA staff. He supports the lease fee collection increase.
“I think out of all the options you have brought to us, your recommendation at this point certainly seems to be one that we can live with,” said Watson, addressing Burns. “The most important aspect of it is that we can control the money.”
Board Member Dave Peaden concurred with Watson and voiced his appreciation of the work staff did in preparing the options. Board member Charles Thorton understood that any type of increase would be tough, but thought the 75 percent increase was the best option.
Attorney Mary Jane Bass told the Board should they opt for the increase in lease fee collections, it would require a change to their prior lease fee collection reduction policy and an interlocal agreement would be created with Escambia County.
This item will be decided at the June 23 Full Board meeting.