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Atlantic Beach council weighs tax, parking and staffing choices to close $640,000 budget gap
Summary
Councilmembers debated a mix of a modest tax-rate increase, a $1 hourly parking hike, staffing and contract cuts, and sale of an old fire truck to close a reported $640,000 FY23-24 shortfall; the manager was asked to prepare a budget scenario with a 0.015 tax-rate increase for presentation May 1.
Mayor A. B. Cooper, III reconvened the Atlantic Beach Town Council’s continued FY23-24 budget workshop on April 24 to focus on a reported $640,000 deficit and options to close the gap.
Town Manager John O'Daniel outlined measures the council could consider: a property tax increase (including a previously discussed 0.08 option tied to funding a new fire truck), lowering the proposed cost-of-living adjustment from 6.5% to 5% or issuing a flat $3,000 raise, raising water rates to save for future system repairs, eliminating the proposed code enforcement officer, cancelling the town’s UNC water testing contract and ending the public safety complex cleaning contract.
O'Daniel said raising the hourly paid-parking rate from $3 to $4 would be expected to generate about $104,000 and could reduce pressure on the tax rate. Councilmembers reached a consensus to increase the hourly parking rate by $1 and to extend paid parking beyond Aug. 31. O'Daniel said the town could sell its old fire truck after delivery of the new unit for approximately $50,000.
Councilmember Joey Dean asked for a clear explanation of why the deficit exists and how Resolution 22-01-02, the town’s unassigned fund balance policy, affects choices about using reserves rather than raising taxes. Councilmember Joseph Starling expressed support for a flat $3,000 raise for all staff instead of a percentage COLA so lower-paid employees benefit more; the council discussed trade-offs between a flat increase and a percentage COLA.
Councilmember Renea Baker supported the parking-rate increase and asked Police Chief Jeff Harvey why the department planned to buy SUVs rather than sedans; Harvey said manufacturers have largely stopped producing sedans and that the proposed SUVs would not be four-wheel drive. Councilmembers agreed the Code of Ordinances should be updated before hiring a code enforcement officer.
Debate over the tax rate continued: Mayor Pro Tem Austin Waters said a 0.02 increase was higher than he expected and would prefer not to exceed 0.015, while other members noted a 0.08 option had been floated specifically to fund the fire truck. Mayor Cooper asked departments to seek operational reductions and instructed Manager O'Daniel to begin preparing a revised budget starting with a 0.015 tax-rate increase and showing departmental cuts where possible for presentation at the May 1 meeting.
The workshop produced direction rather than formal votes: the council instructed the manager to model the 0.015 tax-rate scenario, approved by consensus a $1 increase to the hourly parking rate and the extension of paid parking past Aug. 31, and agreed to further discussion of personnel and contract cuts. The council recessed at 5:45 p.m.; minutes were approved at the May 22, 2023 meeting.
