Money is due in October
Port Must Scramble to Find $20,000 to Pay City
OHPA comissioners discuss PILOT payment shortfall
Posted
Delays in applying a universal administrative fee to Port of Fernandina customers could result in the Ocean Highway and Port Authority (OHPA) struggling to gather sufficient funds to pay the city of Fernandina Beach its yearly $50,000 fee.
OHPA Accountant Pierre LaPorte told port commissioners Wednesday to expect a $20,000 shortfall in the money it owes the city for Payment In Lieu of Taxes (PILOT) in October.
"I estimate that we're (OHPA) are going to be short between $10,000 and $20,000," LaPorte said.
He explained the new administrative fee was intended to be imposed for a full budget year and would raise the $50,000 necessary to meet its PILOT obligation to the city. But the fee has been delayed in being fully implemented, according to LaPorte.
"It's been implemented but not completed for every customer and there's been some delays," LaPorte said. "Now we have seven months left, we're looking at a $20,000 shortfall. The question becomes, we don't have a lot of resources ... so the next question becomes how do we come up with this money."
OHPA and the city ended a protracted lawsuit over the PILOT payment last July, with the port agreeing to continue to pay the $50,000 each year in exchange for city-provided services to the port facility. OHPA had argued that the PILOT payments were only for a 30-year period.
"I don't want the city worried or concerned that they're not getting paid," said OHPA Chair Justin Taylor. "We have the obligation. We have to make sure they're getting the $50,000."
LaPorte said he is looking into the port's cash flow and concerns that the port has many other expenses due in October, such as insurance and Florida Ports Council dues, along with its payment to the city.
"We need to make sure we have $50,000 on Oct. 1," LaPorte said. "We're living on a very thin budget. The (new) fee is not going to raise a crazy amount of money, it's intended to give us exactly $50,000. There's not a lot of leeway there."
