Ordinance setting franchise tax was passed by Jay council in 1953
The Jay council is considering possible ways to generate revenue for the town and discussed the town's current Municipal Public Service Tax (MPST) ordinance at Monday night's meeting.
Municipal Public Service Tax is levied on six utility services: electric, fuel oil/kerosene, LP gas, manufactured gas, natural gas, and water. Currently, the town of Jay earns $1,200 a month currently.
Operations Manager Eric Seib reported there is an ordinance from 1953 that set a 10 percent charge for every sale of electricity in the town of Jay, with a $3 cap on that charge. He noted that $3 in 1953 is $27.80 today, noting that it corresponds with the town's revenues as EREC city tax. In May and June, the town received $1,213 each month for the $3 per person tax.
“For every dollar we could increase this limit, we wouldn't be increasing the tax, we're increasing the minimum limit, it would be increase to $1,600 per month revenue for Jay,” said Seib. “If we keep the current 10 percent, but we cap the minimum fee at something above $3, it will generate revenue.”
Attorney Steve Cozart referred to the EREC's required fee franchise and it's possible effect on that ordinance and said he would look into it. Mayor Owens said the franchise fee is 5 percent and is separate from the public service tax.
“The franchise tax was signed in 2015, it goes to 2025, 10 years, so there's not really anything we can do to adjust that at this point,” said Owens.
Councilwoman Jane Hayes suggested making the ordinance correspond to account for inflation, putting a base of no less that $3 on the amount instead of a cap. Owens suggested putting a cap minimum and adjusting every year for inflation.
The subject was tabled until the next meeting.
In other business, there are approximately 175 water and 75 gas meters to be installed in the town and the council and mayor are considering the best way to install them, either contracting out the work or having the town employees install them. It cost on average $25 to $35 to install a meter, Owens said. The transmitters are $150 each, and each meter needs one transmitter, he said.
“If we can find a contractor/side guy to install these 300 meters we have left on the side, maybe on a Saturday, we could do 10 or 20 a month if we need to stretch it out from a cost standpoint,” said Owens. “I think we are going to try to do it this way, even if it takes us six months.”
It will cost the town about $1,250 a month, which Owens said he thought the town could handle.
“Even if we are sitting on go, we're moving forward,” said Owens.
Engineer's Report
Dewberry Engineering submitted a request for payment of $175,300 to the town for the stormwater project on Commerce Street completed in October of 2016. The money is reimbursed through a grant from the Department of Environmental Protection (DEP) as a legislative appropriation to the town.
Dewberry's Crystal Witherington told the council a survey team will be coming in the next two weeks to do an underground survey on the water lines on Highway 4 and State Street as part of the Community Development Block Grant (CDBG) application.
“There's about 14,000 linear feet of pipe that will get replaced, primarily cast iron, by the money from the CDBG,” said Witherington.
Councilwoman Hayes asked about replacing the pipes in the middle of the road, but Witherington said that the water pipes were on the actually on the north side and the sewer lines are in the middle.
“There is a section of the pipe, 7,000 or so linear feet on Highway 4,” said Witherington. “Of that, 2,500 feet of that is under concrete or pavement, so they'll end up having to bore that section. But it is my understanding that the Florida Department Of Transportation (FDOT) is going to do the engineering and construction administration of that project just to keep it cleaner and not have to co-ordinate so much.”
Mayor Owens told the council that discussions he has had with DOT revealed that the engineering plans for the 7,000 feet of pipe on Highway 4 needs to be done in the next 30 to 45 days. He said the FDOT provided surveys, but said they are in talks to decide who will do what, between contractors with Dewberry Engineering and the FDOT.
Councilwoman Hayes made a motion that the town work in conjunction with the FDOT on the resurfacing project of Highway 4 to replace the pipe that will be primarily done by their engineers, which was seconded by Councilman Wayne Godwin. The motion carried.
The next meeting will be at 6 p.m., Monday, August 6, at Jay Town Hall.
