Tennis Center’s net benefits trump revenue

The Longboat Key Town Commission and town staff are showing the Longboat Key Public Tennis Center the love even though it’s not a money-making operation. 

At their regular workshop Monday, commissioners supported a plan by Town Manager Dave Bullock that continues to put $15,000 a year into a separate capital improvement fund for the future improvements to the facility that the commission approved last year.

Commissioners cited the benefits the tennis center offers the island, despite the fact it has lost more than $12,000 the last two fiscal years (see sidebar).

“It’s a huge drawing power and an asset,” Commissioner Phill Younger said. 

Last month, Friends of Tennis President David Gutridge urged the town to fund operational needs for the tennis center. Commissioners agreed that operational costs such as tennis court resurfacing are the town’s responsibility in the future.

Bullock said he believes a fund with $15,000 a year is adequate to build up operational money for the tennis center. 

In fiscal year 2016, the town is preparing to spend $30,000 for court resurfacing.

Bullock said tennis center membership fees will probably be raised slightly next year and on an as-needed basis to pay for future projects at the tennis center. 

“That’s normal business management principles for any operation like this,” Bullock said.

2015-16 BUDGET BREAKDOWN

The Longboat Key Town Commission held its first budget workshop for fiscal year 2015-16, which begins Oct. 1. Commissioners and town staff will continue wrestling with various numbers and figures throughout the summer until the commission adopts the budget in September.

Bullock’s guidelines

• No increase in millage;
• Maintain publicly visible service levels;
• Maintain a minimum of 90 operating days of fund balance and seek more efficient methods to accomplish the mission;
• Identify potential reductions or efficiencies;
• Maintain support for a five-year capital improvement plan for scheduled vehicle replacement and infrastructure improvements.

Property Value Expected Growth

Town Manager Dave Bullock expects 3% to 5% ad valorem revenue growth in 2015-16. That amounts to $312,037 to $519,950 in additional revenue for the town.

Cost Increases

• 2%: Wage increase provided to police officers as part of a negotiated contract.
• 2%: The estimated wage increase for required contributions toward the Florida Retirement System (FRS) for firefighter/paramedics.
• ?: Firefighters and the town begin negotiations this summer for a new three-year contract that will include discussions of potential wage percentage increases.
• $142,826: Increased cost to fund a consolidated frozen pension plan.
• 10%: Estimated health insurance cost increase.
• $200,526: Costs involved with firefighter/paramedic retirement payouts and new hire overlap needed to double the firefighter/paramedic staff from March 2016 to July 2016 so new hires can be trained.

General Fund Major Projects

• $150,000: Townwide software updates
• $125,000: Fire and police dispatch equipment upgrades
• $100,000: South fire station upgrades or rebuild design
• $100,000: Fire records management system
• $92,000: New 24-foot police boat
• $63,000: Information Technology hardware/software upgrades
• $42,000: Police car cameras
• $25,000: Town external defibrillators
• $15,000: North fire station improvements
• Total: $712,000

By the Numbers

• $584,000: Revenue the tennis center is expected to reach by Sept. 30, a 6% increase from a year ago
• $109,000: Tennis center profit as of April 30
• $21,000: Expected profit for fiscal year 2015