Town manager presents balanced budget

Read his lips: no new taxes.

Longboat Key Town Manager David Bullock distributed a proposed 2012-13 fiscal year budget to commissioners Friday, June 1, that is flat compared to last year’s budget and, as expected, includes no tax increases.

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. One mill is equal to $1 for every $1,000 of assessed valuation.

The budget was prepared based on an estimated 1.7% drop in ad-valorem property values, a smaller decline than the 3% for which town staff initially prepared. 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. 

Additionally, the town is preparing for a $93,000 drop, or 8.6% reduction, in franchise fees, mostly from FPL, much of which has been attributed to a mild winter.

The total operating expenditures budgeted for next year is $13,939,177 — about 0.2% less than last year’s budgeted $13,966,784.

The balanced budget comes in the middle of several cost increases the town will experience in the next year, including a 13% hike in required pension contributions and a 7% increase in employee pension costs.

But, because of higher-than-expected property values, the commission won’t have to take money out of the $1 million the commission reserved in the general fund to offset pension costs or use any of the unreserved fund balance to pay for pension contributions.

The proposed budget does not include cost-of-living adjustments or merit increases for town employees, however, Bullock wrote that he “would like to revisit employee pay and total compensation during the upcoming year.”

The budget identifies several areas for expenditure reductions, including:
• Leaving a police officer position vacant, at a savings of $100,000;

• Reduction of town attorney costs anticipated at $37,800;

• Use of staff from a temp-type agency to fill the position of a retiring information-technology employee and reducing computer software and professional services costs, saving $53,634;

• Eliminating a weather-subscription service that costs $11,050.

The commission will continue its budget discussions during a special workshop at 2 p.m. Wednesday, June 5, at Longboat Key Town Hall. A recommended budget will be presented to the commission by Aug. 1, and the budget will be adopted on second reading at a special meeting in late September.

Click here to view a graph on Town Manager David Bullock's budget.