- April 25, 2024
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The Longboat Key Town Commission received a preliminary 2010-11 budget Wednesday, June 1 that includes a $223,601 budget deficit. Town Manager Bruce St. Denis, however, lists six ways to keep the budget flat.
One of the six ways to achieve a balanced budget is by raising the millage rate for the fourth consecutive year.
St. Denis proposes a 2.6% millage increase, which would raise the millage rate from 1.8872 mills to 1.9367 mills. The move would balance the budget.
The town’s rolled-back millage rate, 1.9760 mills, would generate the same amount of ad valorem tax revenues as the previous year ($8,874,000). The rolled-back rate is exclusive of tax revenues for new construction.
One mill is equal to $1 for every $1,000 of assessed valuation.
If the commissioners decide not to raise the millage rate during a year that includes a 4.18% reduction in property values, the tax rate would generate $371,000 less than the previous year.
If an increased tax rate is adopted, the increased millage would mark the fourth time in a row the Town Commission has increased the town’s property-tax rates.
This year, however, St. Denis also lists five other options that include:
• Continuing to look for expenditure reductions this summer to reduce or eliminate the $223,601 shortfall.
• Finding additional revenues for all or part of the shortfall.
• Fund all or part of the shortfall from the general fund reserves.
• Using $223,601 of the $1 million set aside in last year’s budget for unanticipated pension costs.
• Doing a combination of any of the above six suggestions.
The new budget, including capital spending, totals $14,420,781 — down .2% from the $14,423,263 budget in the current fiscal year. That’s a reversal from last year’s 2010-11 fiscal year preliminary budget, which showed a 4.83% increase in total spending.
The budget shows the town beginning the fiscal year Oct. 1 with a balance of $4.9 million, a decrease of 4.62%, or down $236,749 from the previous year.
The preliminary operating budget forecasts a decrease in revenues, including transfers, by 1.57%, and a 0.02% expenditure decrease, including capital, when compared to the current fiscal year. That’s also a reversal from last year’s preliminary budget, which showed a 4.83% expenditure increase.
Overall, operating expenses, including personnel costs, have decreased by $163,952, or 1.15%, in the 2010-11 preliminary budget when compared to this year’s preliminary budget. Last year’s preliminary budget showed a 8.71% increase in operating expenses.
Anticipating a loss in revenues for the fourth year in a row, St. Denis and his staff have already made cuts to reduce the anticipated shortfall to $224,000.
The following cuts have been made to reduce operating expenditures by $164,000:
• Employee health-care plan deductibles and co-pays have risen to reduce town health-care costs by approximately 9%.
• Long-term disability insurance for employees has been discontinued for a $39,000 savings.
• 401(k) matches for the police-and-fire, pension-plan members have been eliminated for a $63,000 savings.
• A parks service worker position has been eliminated for a $42,000 savings.
• Miscellaneous personnel changes created a $20,000 savings.
• A Finance Department reorganization resulted in an expenditure decrease of $36,000.
• Cost-of-living and merit increases for employees have been eliminated for the fourth consecutive year.
The commission will hold summer budget workshops at Town Hall, 501 Bay Isles Road.
The recommended budget will be presented to the commission by Aug. 1, and will be adopted on second reading in late September.
Preliminary Budget Operating Budget Changes for 2011-12
Amount % Change
Revenue
Ad Valorem Taxes -371,127 -4.18%
Local Business Tax -$30,000 -15.19%
Expenditures
Finance/Purchasing -$36,688 -7.16%
Human Resources -$11,470 -9.62%
Municipal Buildings -$43,901 27.12%
Public Works $78,534 16.63%
Parks -$55,171 -21.78%
Recreation Center -$44,092 -55.15%
Contact Kurt Schultheis at [email protected].
