Commission approves $16 million budget on first reading

The Longboat Key Town Commission approved a 2015-16 fiscal year budget on first reading Wednesday night that uses $389,675 of general fund balance to pay for rising expenses.

A 5.33% increase in property values generated an additional $504,051 in additional ad valorem revenue at the current millage rate of 2.1763 mills.

The commission, though, opted to reduce the millage rate to 2.130 mills at its regular meeting.

The commission also voted by a 4-3 vote to place $967,931.82 in BP Deepwater Horizon oil spill settlement funds into the town’s pension fund to help pay down approximately $23 million in unfunded pension liabilities. That money, along with an additional $300,000 pension fund contribution agreed to by commissioners, will be used by a consolidated pension board to pay down the debt.

The recommended budget calls for a general fund of $16,324,777, an increase of 8.4%, or $1,265,511 over the previous year’s general fund budget of $15,058,716.

Total proposed budgeted expenditures, excluding capital outlay, are $15,600,438, an increase of $761,722, or 5.13% more than the fiscal year 2014-15 adopted budget.

The increase in spending is attributed to one-time costs associated with the pending retirement of seven firefighter/paramedics in 2016 and the cost of hiring replacements three months ahead of schedule for training purposes, which will cost the town $200,526. Other notable spending increases include increases in pension contributions ($199,042) and contractual wage and merit-based wage increases ($214,800).

Bullock points out that even with the use of general fund money to balance the budget, the town will maintain 92 days of fund balance.

A 5.33% increase in property values generated an additional $504,051 in additional ad valorem revenue at the current millage rate of 2.1763 mills.

The budget also includes projects that include $1.1 million for Bayfront Park renovations, $500,000 for the feasibility and planning of canal dredging, more than $23 million worth of beach projects and the replacement of an outdated Town Hall computer system that’s budgeted for $300,000.

Contact Kurt Schultheis at [email protected].