Commission approves $16,241,037 budget

The Longboat Key Town Commission approved a fiscal 2015-16 budget on second reading Monday night that uses $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 additional 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.

While the decision decreases taxes for homesteaded property owners and reduces the tax increase for non-homesteaded properties, it means staff will use $622,240 of reserve funds instead of what was previously projected would be needed to balance the budget. Earlier this year, 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 to place $1,268,000 into the town’s pension fund to help pay down $23 million in unfunded pension liabilities. That money includes $967,931.82 in BP Deepwater Horizon oil spill settlement funds and an additional $300,000 contribution previously approved by commissioners.

Total proposed budget expenditures, excluding capital outlay, are $15,517,248, an increase of $678,532, or 4.58% more than the fiscal 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, which 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 projects that include $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and planning of canal dredging; more than $23 million worth of beach projects; and $300,000 for the replacement of an outdated computer system.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.