Commission fills $426,067 deficit with general fund money

Despite needing to balance the fiscal year 2015-16 budget by balancing a $426,067 deficit, Town Manager Dave Bullock made it clear Monday he won’t propose a millage rate increase.

“No where in my budget do I propose an increase in millage,” Bullock said. “I don’t think that’s necessary at all.”

But what was necessary at Monday’s special workshop meeting was how to address a $426,067 budget deficit to balance the 2015-16 fiscal year budget and leave 90 days of reserve funds available if Bullock needs the money to pay for costs associated with a natural disaster like a hurricane event.

Bullock pointed to several major costs associated with the coming year’s budget for the deficit.

There’s a $716,514 increase in personnel costs alone (see sidebar) when compared to last year’s budget and a $503,789 increase in capital fund costs.

The preliminary operating and capital budget of $16,412,508 represents a $1,353,792, or 9% increase, in spending from the previous year’s budget of $15,058,716.

Bullock points to a capital outlay increase of $520,789 and firefighter/paramedic retirement payouts and a new hire overlap in the department of $200,0526 as the biggest reasons for expenditures exceeding revenues. Bullock, however, points out that two of the items are non-recurring one-time expenditures: the retiree payouts and a $153,789 expense to transition 911 dispatch costs associated with the transition to Sarasota County.

A 10% anticipated increase in town employee health insurance, which amounts to $136,000, is also expected.

Bullock is also including $214,800 that gives Bullock money for 3.5% wage increases for general employees this year through a new merit-based incentive increase program he is creating. Bullock pointed out that in the last eight fiscal years, in four of those years , employees received no wage increases.

“I’m a firm believer in giving raises to those employees that stand out and not just those that show up for work each day to collect a paycheck,” Bullock said.

Police employees will receive 2% wage increases as negotiated through a union contract and firefighter/paramedic wage increases still need to be negotiated this summer as part of a new three-year contract.

Bullock said glaring budget items stick out in the town’s capital budget, which calls for $153,789 worth of fire/police dispatch equipment, a $150,000 town-wide software upgrade and $100,000 for a new Fire Rescue records management system.

Bullock asked for and received commission consensus to take $426,067 from the fund balance to balance the budget.

“I generally don’t ask for things like this and I’m relatively conservative but in this case I’m comfortable with this request,” Bullock said. “This year we have unusual (budget) items we have to address.”

Commissioner Lynn Larson suggested the town use some of the $1.6 million the commission has set aside for pension costs to address the deficit.

“Leaving $1.6 million sitting there doesn’t seem like a smart thing to do to me,” Larson said. 

The idea didn’t gain traction though despite Larson’s urgency the commission is “essentially doing a tax increase because we’re taking our fund money to pay for this.”

The commission also agreed to reduce the number of operating days in reserve funds for emergency purposes from 98 days to 90 days. Bullock will take the $347,000 available from those eight extra days to improve the investment status of the town’s frozen pension plan. Larson pointed out earlier in the meeting the town needed to improve the investment rate of return of the town’s frozen pension plans.