Town adopts 2.1763 millage rate

Longboat Key taxpayers’ bills are officially rising.

And while this year’s budget didn’t include wage increases for town employees, except for those offered to police officers as part of a collective bargaining agreement, that will change next year.

“In FY 16, I want you to know very clearly now that I’m planning on a merit pay increase for our employees,” said Town Manager Dave Bullock in his presentation to the Longboat Key Town Commission at its meeting Monday, during which the commission unanimously adopted its 2015 fiscal year millage rate and budget on second reading and public hearing.

The town manager mentioned his plan to implement a new compensation system that focuses mostly on merit during his discussion of items for commission consideration for the 2016 fiscal year.

Aside from the brief mention of employee compensation, Monday’s budget meeting contained few surprises.

The budget will generate an additional $954,397 in revenue for the town compared with fiscal year 2014.
No members of the public spoke in favor of or against the millage increase or budget at Monday’s meeting.

The new millage rate is 0.1003 mills higher than the current rate of 2.0760 mills. That increase includes a 0.0862 mill increase in the general fund to pay for pension costs and a 0.0141 millage increase to reach a 90-day operating fund policy level.

“If we need money for something unexpected, the fund balance is the amount we maintain that’s not for expenses,” Bullock said. “And since 2010, like a lot of town’s have, we have used our fund balance to balance the town’s budget.”

The town projects that it will end fiscal year 2014 with a 79-day fund balance.

Key-wide, property values rose 5.4% overall, meaning that the town would have taken in additional revenue even if the millage had stayed flat.

However, the town has several major projects underway that impacted this year’s budget, including a beach project and construction of two sand-saving groins on the north end planned for next summer; replacement of an aging water line in Sarasota Bay that funnels the Key’s wastewater to Manatee County for treatment; and a technology assessment to replace outdated community development and financial reporting systems.

The town also faces uncontrollable spending increases, including 412,322 in pension costs, $20,562 in wage increases for union employees and a $45,655 property/worker’s comp insurance increase. The town also budgeted $170,000 for zoning and comprehensive plan changes.

The town’s required pension contribution represents $2,964,985 of the budget, or 19.7% for fiscal year 2015.

The new fiscal year begins Oct. 1.

DISTRICT A VS. DISTRICT B
Since October 1992, Key property owners have paid or beach projects using the following model:
District A voters foot 80% of a beach project bill and District B voters pay the remaining 20%.
District A includes all residential properties west of Gulf of Mexico Drive (i.e. the Gulf side) and all commercial properties on the island, while District B consists of all other Key properties.