Creating a Municipal Services Taxing Unit (MSTU) to fund beach renourishment

Submitted by Suanne Z. Thamm

Reporter - News Analyst

October 8, 2015 8:34 p.m.

Camille Tharpe presents MSTU overview to FBCC.

During the October 6, 2015 Regular Meeting of the Fernandina Beach City Commission (FBCC), Camille P. Tharpe, Senior Vice President of Government Services Group, Inc., provided an overview of MSTUs in general and identified specific data being used to finalize creation of such a public funding mechanism to pay for renourishment of Amelia Island beaches. Tharpe’s firm has been retained by Nassau County to provide consulting services for this project.  This matter was discussed by both the county and city commissions during their Joint Local Planning Agency meeting held on August 27, 2015 (see previous article).  There were no objections raised by commissioners.

Tharpe explained that many counties use MSTUs to pay for services in their unincorporated areas. This funding mechanism, a levy of ad valorem taxes, is authorized in Section 125.01 Florida Statutes. It does not require a referendum, and it may impose up to 10 additional mills for municipal services and facilities. However, creation of a new MSTU depresses the millage available for general fund and dependent special districts.

The MSTU proposed to fund beach renourishment includes all property on Amelia Island except that area at the southern end of the island already paying for beach renourishment and maintenance under the South Amelia Island Shore Stabilization Agency (SAISSA). Under the plan as proposed, an island property currently valued at $198,000 would pay $24.20 toward this effort.

It was stressed during the presentation that this tax would not necessarily be collected every year, but only when a beach restoration project was needed. Money collected may not be diverted to any other purpose or rolled into any other fund. At this time, Nassau County is not imposing the tax, but merely setting up the mechanism which would allow it to do so.

In response to a commission question on when the city needs to begin work on its side of this initiative, City Attorney Tammi Bach responded that Nassau County must first write its ordinance, which it has not yet done.

Should the county and the city wish to impose this tax next year, both local governments must have enabling ordinances in place by January 1, 2016. The tentative millage rate would not be set until the regular budget cycle during the summer of 2016.

For presentation and discussion of Municipal Service Tax Units at the Nassau County Board of Commissioners Meeting, click here.

Editor's Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne's many contributions to the Fernandina Observer.