Commission approves $16,241,037 budget; tax rate to fall 2%

The Longboat Key Town Commission approved a fiscal 2015-2016 budget on first reading Sept. 9, using  $622,240 of reserves funds to pay for rising expenses.

A 5.33% increase in property values would have generated an additional $504,051 in ad valorem revenue at the current millage rate of 2.1763 mills. But the commission opted to reduce the millage rate to 2.1300 mills at its regular meeting. 

While that decision decreases taxes for homesteaded property owners, it means staff will use $622,240 of reserve funds instead of what was previously projected would be needed to balance the budget. Earlier, the town manager said $389,675 would be needed to balance the budget because of rising expenditures. 

The decision still gives the town 93 days of operating funds in the event of an emergency.

The commission also voted 4-3 to place $967,931.82 in BP Deepwater Horizon oil spill settlement funds into the town’s pension fund to help pay down $23 million in unfunded pension liabilities. That money will be added to an additional $300,000 contribution to the pension funds approved by commissioners.

The recommended budget calls for a general fund of $16,241,037, an increase of $1,182,321 over the previous year’s general fund budget of $15,058,716.

Total proposed budgeted expenditures, excluding capital outlay, are $15,517,248, an increase of $678,532, or 4.58% more than the fiscal year 2014-15 adopted budget.

The increase in spending is attributed to one-time costs associated with the pending retirement of seven firefighter/paramedics in 2016 and the cost of hiring replacements three months ahead of schedule for training purposes. That will cost the town $200,526. Other notable spending increases include increases in pension contributions ($199,042) and contractual wage and merit-based wage increases ($214,800).

The budget also includes $1.1 million for Bayfront Park renovations; $500,000 for the feasibility and planning of canal dredging; more than $23 million worth of beach projects; and $300,000 for the replacement of an outdated computer system.

Employee wages make up 40.2% of the total budget, with pension contributions and related expenses making up 24.5% of the budget.

The Longboat Key Town Commission will approve the budget on second reading at a special meeting 5:01 p.m. Sept. 28.