Century residents could see up to a 10 percent raise in gas, electric and water rates and up to 25 percent on gas outside the town limits after Century Council Monday night listened to former Gulf Breeze City Manager Buzz Eddy explain how the Municipal Public Service Tax (MPST) and the alternative revenue source it could generate could help the town of Century.
However, the town council took no action on the proposal and will make a decision at a later date.
The tax is based on the impact of utility usage for water, gas and sewer provided by a municipality.
Eddy said the town could take the extra income from water and gas and put it into the General Fund legally.
Eddy told the council that sometimes property taxes can plateau while expenses increase and the municipal public service tax is a way to stabilize and diversify property taxes.
“Your General Fund can increase for expenses not covered by local option gas taxes or as valorem taxes,” said Eddy. “It's based on the impact on municipal services. A household with one resident will use less services than a household with six. The percentage charged for services provided by the municipality is based on that.”
Eddy said the tax in Gulf Breeze is set at 7.5 percent, but Florida state law allows up to 10 percent. Those who live outside city limits could pay more, up to 25 percent more, according to Eddy.
Councilwoman Ann Brooks asked if the tax would be based on the minimum or actual amount used. Eddy said customers who use the minimum or less would pay minimum plus the percentage. He also noted that customers who use natural gas outside the city limits of Century can be charged up to 25 percent more for the gas.
“Now remember, people in Gulf Breeze live in these million dollar, high dollar homes,” said Century resident David Dixon. “Here in Century, a lot of people live on a fixed income. There are people struggling to pay their bills now. Ya'll have raised rates and we just can't afford to pay higher bills.”
Councilwoman Brooks asked if there are any exemptions available and Eddy told the council there are certain exemptions based on income and other circumstances.
“I think its a great idea,” said Century Mayor Henry Hawkins. “It will help to bring much needed money into the town to fix the things that need to be fixed.”
Hawkins said that if the town decides to adopt the resolution in the future, it will do it in small increments like the gas and water rate increases.
The next Century Council meeting will be at 7 p.m., Monday, Feb. 19.
