GREEN COVE SPRINGS – With an expected decrease in tax revenues, city officials discussed the possibility of cutting ad valorem taxes and raising utility fees in a special meeting on Tuesday.

The idea was spearheaded by Council Member Mitch Timberlake, who said he was in favor of people paying for what they use. He said a 10 percent increase in fees for services would offset the loss of property taxes.

“It’s interesting to me how the Legislature likes to come along and reduce ad valorem taxes and pat each other on the back about how they reduce taxes, but they didn’t reduce their income stream, they reduced our income stream,” Timberlake said.

Timberlake asked council members for feedback. Steven Kelley and Van Royal were apprehensive but said there were some positives.

Kelley mentioned the model worked for Thomasville Ga., which owns five utilities and has more customers. Though Kelley said he was surprised when he did the math how marginal the increases would be, the city still had the perception of utilities costing more than surrounding areas. He called Timberlake’s idea creative but risky.

“We didn’t have a room full of people protesting (the city not rolling back the millage rate last year) or anything like, but I do know if you put this up on Facebook tomorrow about a 10 percent increase, it would fill the room up,” Kelley said.

Royal questioned if the idea was legal and said he couldn’t find a city or county in the state that operated that way. He said with a potential sale of Reynolds Industrial Park, the city would stand to lose a sizable revenue if it dropped ad valorem taxes altogether. Royal did, however, understand implementing a sales tax because U.S. Highway 17 brings in more than 17,000 cars a day, he said.

Council member Pam Lewis wanted to know if the plan would be an economic driver or a deterrent.

“I think there are pros and cons for both sides,” Lewis said. “I personally think as resident or homeowner, you have more control over your utility rates through conservation measures and ways people can conserve.”

City Manager Steve Kennedy and City Attorney L.J. Arnold told council members they would research the issue further.

“I think it’s critical for me and staff to know the direction, the intent and what the goal is and what we’re trying to accomplish,” Kennedy said.