Bullock recommends 1.8872 millage

This 2012-13 fiscal year recommended budget offered few surprises.

Town Manager Dave Bullock’s recommended budget includes a millage rate flat at the current rate of 1.8872 mills.

The commission voted July 2 to set the maximum millage rate at 1.8872 as recommended by town staff, meaning that it could only adopt a rate at that level or lower in September. The rolled back millage rate, or the rate at which the town could generate the same amount of revenue as it took in during the previous fiscal year, was 1.9187.

When the commission held its first budget workshop for the upcoming fiscal year in May, town staff was preparing for a 3% decline in ad valorem values that would result in a $255,000 reduction in revenues.

At that time, Bullock told the commission that town staff would not request a tax increase unless required by pension costs.

Property values declined for the fifth consecutive year, but the drop was less severe than anticipated. Last month, Manatee and Sarasota county property appraisers certified valuations that showed a Key-wide drop of 1.33% in value, translating to ad-valorem revenues just $119,000 lower than last year’s revenues.

The recommended budget is essentially flat, with a 0.37%, or $52,000 increase in general fund operating expenditures compared to last year.

In May, Bullock expressed optimism that the upcoming year would be the final year in which revenues declined because property appraisers’ estimates typically lag about 18 months behind the real-estate market. As a result, ad valorem revenue peaked in 2008 — a sluggish year for real estate.

The town could see a reduction in its net balance for the upcoming fiscal year if non-ad valorem revenues can’t be offset.

Many of these revenue sources are highly variable, such as sales tax revenues, which often fluctuate with the economy and the strength of tourism, along with electricity and gas franchise fees. The recommended budget was prepared forecasting an 8.4%, or $85,000, drop in electricity franchise fees, mainly as the result of trends from the recent mild winter, which brought lower electric bills.

The recommended budget doesn’t include cost-of-living adjustments or merit raises for town employees, but Bullock has said throughout the budget process that he hopes to revisit compensation in the upcoming fiscal year.

Bullock told the Longboat Observer that he wants to see how revenues come in for the current fiscal year and possibly address the issue by the end of the calendar year.

“At some time, I would like to see if there’s anything possible,” Bullock said. “I’m not making any promises. It will depend on revenues and other factors.”

If the commission adopts the 1.8872 millage rate, the rate will be unchanged for the third consecutive year.
The budget will be discussed on first reading and public hearing at the commission’s 7 p.m. regular meeting, scheduled for Tuesday, Sept. 4, instead of the usual Monday date because of the Labor Day holiday.

The commission will adopt the budget at a special meeting at 5:01 p.m. Monday, Sept. 24.

General fund savings
Police
Savings: $136,516
Explanation: An unfilled police officer position will remain vacant for the upcoming fiscal year. Crime statistics and other factors will determine whether the position is filled the following year.

Town Attorney
Savings: $37,800
Explanation: Town Attorney David Persson wrote in a letter to commission estimating his legal costs for the upcoming year that there will be a significant reduction due to Town Manager David Bullock’s commitment to keeping legal costs to a minimum. Bullock told the Longboat Observer that he has controlled legal costs by asking department heads to consult with him, before requesting legal advice to be sure that what they need is legal, rather than management-type advice.

Emergency management
Savings: $11,050
Explanation: The town’s weather subscription service was eliminated because of other ways to get the same information at no cost. The Ready Alert system was also eliminated because of its cost and alternative ways to communicate information at a lower cost.

Town Commission
Savings: $3,850
Explanation: Last year’s budget included the purchase of seven iPads for commissioners. Because none of the tablets require replacement, the expense is not included in this year’s budget.

Recreation
Savings: $2,750
Explanation: The recreation manager will not attend this year’s Florida Parks and Recreation annual conference, although attendance may be added back in future years, if a new community center is built.

GENERAL FUND EXPENDITURE INCREASES
General services / pension costs
Expenditure: $367,944
Explanation: The town’s required contributions to its three pension plans will jump by $367,944, or 12.12%, in the upcoming fiscal year to more than $3.2 million

Tennis
Expenditure: $58,907
Explanation: The Longboat Key Public Tennis Center’s personnel costs are increasing as the result of the facility providing more lessons and selling more merchandise, which, according to the recommended budget, makes up for the increase in revenues.