by Bradley Parsons
Staff Writer
Delinquent bill payers take heart. The City of Atlantic Beach is four weeks past due on a $30,000 utility bill owed to Jacksonville.
While unpaid bills usually lead to threatening letters and collection agencies, Atlantic Beach’s refusal to pay could instead result in a new franchise agreement.
The two cities work together daily, sharing police, fire/rescue and transportation services, according to a 1995 Interlocal Agreement. Jacksonville’s growth adds residents to the coastal communities each year, and City funds help infrastructure keep pace.
It’s a relationship neither side wants to strain. However, Atlantic Beach City Manager James Hanson said it was time to reconsider an annual $125,000 franchise fee imposed by Jacksonville in 2001. He said Atlantic Beach delayed its latest quarterly payment when questions were raised about the fee’s legality.
“We felt like we had resolved our financial relationship with the Interlocal Agreement,” said Hanson. “For one partner to impose a fee without the other partner’s input seemed not to be in the spirit of our agreement.”
The franchise fee is designed to protect Jacksonville’s utility business. It takes 5 percent of profits from independent utilities operating within City limits.
Because a third of Atlantic Beach’s Buccaneer Water and Sewer’s customers occupy Jacksonville land, the franchise ordinance immediately stuck the community with a $30,000 bill, due every three months.
Heather Murphy, Mayor John Peyton’s spokesperson, said negotiations with Atlantic Beach were underway. She said she expected some form of fee to remain intact. Hanson said Jacksonville was considering several Atlantic Beach suggestions and said he expected a response in a few weeks, adding he is confident that middle ground could be found.