The City Council in Atlantic will discuss the future of the Atlantic Senior Center during their meeting 5:30-p.m. Wednesday, at City Hall. As previously reported, the City’s Personnel and Finance Committee met Jan. 23rd to try and answer two questions: Is the City interested in selling the building located immediately south of City Hall? If so, should consideration be given to the Elks organization, which has expressed interest in purchasing the building “As is”?  One of the options the Committee discussed, was to sell the building, with protections given to the Senior’s group so they would not be kicked-out. The other was opposing the sale outright.

The Elks have offered to buy the Senior Center and make the necessary repairs to the roof, and share the facility with Senior Citizens during the day, as is currently the case. The fair market value of the building, as is, would be $59,000 to $63,000. If the City pays for the roof repair, that would up the value to between $86,000 and $88,000. The roof has been leaking since last August, and must be replaced. The cost of that project was estimated at $36,255. In addition to the roof factor, the City receives about $2,000 per year in revenue from the Senior Center. Operating costs range from $4,244 to $4,323. Officials say payback on the roof “Is not mathematically feasible from ongoing revenues. The Fund balance for the Senior Center Fund at the end of FY 2018, was $11,069. The City admits the building has not been  a high priority on physical updates, and while the structure itself is solid (minus the roof issue), it could use additional investment.

City Administrator John Lund said at the Committee meeting in January, that the City could retain ownership of the building and pay for the roof repair if the City Council activates a tax levy amounting to 13.5-cents per thousand dollars valuation. Accordingly, the City would lower the employee benefits levy by the same amount. Those funds ($30,000), combined with the remaining balance of the Senior Center Fund, would allow the roof to be repaired. And, the Council could allow the Elks to use the facility without charge in the evenings. It would no longer be rented out for other purposes. The option would still allow the Senior Center to be used from 10-a.m. to 3-p.m. as it is today. Some benefits of selling the building if the Council decides to do so, according to Lund, is that it would be brought onto the tax rolls, the City will receive compensation for the disposal of real estate, and the Elks have time to get approval from their hierarchy for the purchase.

In other business, the Atlantic City Council will receive a presentation from John Lund, with regard to the Fiscal Year 2020 Budget and 10-year Capital Improvement Plan (CIP). The proposed budget for FY 2020 is $16,520,747, which is a decrease of $129,388 (-.78%), from the FY 2019 Revised estimate of $16,650,135. Lund will tell the Council that: the City’s combined property tax levy remains unchanged; The overall budget accomplishes key priorities of the Mayor and Council, however, it has resulted in a deficit in key funds that will require stricter fiscal policy in the following year’s budget in order to avoid a trend of deficit spending; and, that the City is now budgeting any excess cash growth beyond required minimum towards “inevitable liabilities in specialized funds, moving them away from operating budgets, and also to minimize future debt assumptions.

The budget also says there will be no increases for existing fees, and utility rates remain unchanged. He concludes by saying “Altogether, the FY 2020 Budget establishes a solid plan for the next decade of life in Atlantic. It positions our community to capitalize on its strengths, address its challenges and continue to build a community that is welcoming to families and business.”