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City manager: Oil spill proceeds should have a lasting legacy

 
Published Aug. 4, 2015

CLEARWATER — The city should spend the money it will receive in its BP settlement on something that will have a lasting impact, City Manager Bill Horne told the City Council on Monday.

The city will get about $6.48 million as its share of BP's settlement from the Deepwater Horizon oil spill of 2010. Rather than use it on operating funds or lowering the property tax rate, Horne suggested the city dedicate the money to a legacy fund, focus on disaster management or invest in economic initiatives, such as the city's downtown project.

Both Mayor George Cretekos and Council member Hoyt Hamilton showed support for the legacy initiative.

"I'm much more leaning towards a legacy type. Something that future generations will be able to benefit from," Hamilton said.

To Horne, a legacy would mean building or maintaining community structures — such as buildings, monuments, or works of art — that would contribute to Clearwater's future.

"Everybody understands the value of that," Horne said.

Some Clearwater residents have asked for the money to be refunded to them through tax breaks or reduced property tax rates, but both Cretekos and Hamilton said those plans do not make fiscal sense.

"It would be better for us not to use (the funds) for ongoing expenses for one year because after the year goes by then the money isn't going to be available the following year," Cretekos said.

According to Hamilton, residents would see little benefit if the city used the money for tax breaks.

Council member Bill Jonson was interested in helping those most impacted by flooding. He asked whether the city could consider an "investment of legacy" in individuals that have the highest flood risks.

Another of Horne's top priorities would be the ability to bounce back after a disaster. During the BP oil spill, Horne said it was difficult to provide mass communication about the city's status.

"How do you get the word out that everything's back to normal?" Horne asked. "The ability to quickly respond; it might be wise to have money available to do that."

Jonson said it would be smart to try to "offset the environmental degradation" that may still come from remnants of the oil spill.

Ultimately, the decision of how to spend the settlement funds is up to the council, which is scheduled to discuss it Aug. 17.

In Horne's view, "there's no right or wrong answer."