Longboat Key preliminary budget balanced

The Longboat Key Town Commission received a preliminary 2012-13 budget Friday, June 1 that’s flat when compared to last year’s budget and includes no tax increase, as expected.

The proposed budget is essentially balanced despite a 7% possible increase in employee insurance costs and another year of declining assessed property values. The budget does reveal a decrease of general fund operating expenditures of $28,000, or 0.2%, when compared to the fiscal year 2011-12 adopted budget.

Based on the town’s current millage rate of 1.8872 mills, the town would generate $8,362,000 in ad valorem revenues, or $137,000 less when compared to a year ago. That’s because the budget was based on an estimated 1.7% reduction in property values Key-wide. Non-ad valorem revenues, meanwhile, are estimated to be approximately $55,000 lower when compared to last year’s adopted budget. Many Key residents who have properties with a homestead exemption, though, will see increases in their property values.

To make the budget flat, a vacant police officer position will not be filled this year, saving the general fund $100,0000. Other personnel changes could result in $175,000 in additional savings.

“Due to higher than expected property values and expenditure reductions,” staff formulated the budget without using any of the town’s $1 million general fund balance reserve for pensions and without using the unreserved fund balance to offset an increase in total town pension contributions for 2012-13.

For more information, pick up a copy of Thursday’s June 7 Longboat Observer.

Contact Kurt Schultheis at [email protected].