Longboat Key sees reduced revenue from COVID-19 pandemic

The town  has managed to keep its millage rate flat for fiscal year 2021 despite forecasts of reduced revenues related to the COVID-19 pandemic.

Commissioners voted Tuesday night to adopt the budget and set the town’s general fund millage rate at 2.1144, which has gone unchanged since the 2017 budget.

“I just would like to commend and thank both [Town Manager] Tom [Harmer] and [Town Finance Director] Sue [Smith] and their staffs for their hard work in managing what is, in essence, a $130 million budget, and especially for navigating all the budget aspects of the COVID crisis for both 2020 and 2021,” Mayor Ken Schneier said.

Schneier pointed out the town did not have a millage increase and there were no service reductions.

The budget for fiscal year 2021 shows the town’s total revenue at $16,318,241. Compared to the previous fiscal year, the budget shows a decline of $480,672. It includes a decrease in assessed taxable property values resulting in a loss in tax revenue of $146,148 and estimates non-ad valorem revenue loss of $334,524.

Fiscal year 2021 expenditures are projected  at $17,288,181, which means costs are expected to exceed revenues by $969,940.

Longboat Key’s property tax revenue in Sarasota County is slightly lower compared to previous years because of slightly lower condominium values, Harmer said.

Figures from July showed a slight decline in property tax revenue because of the valuation of Longboat Key’s properties at about $6.108 billion. The fiscal year 2021 budget shows the town will collect $12,398,165 in property taxes.

The town is projecting $199,800 in reduced revenues because of COVID-19 impacts.

Harmer said the town took a three-pronged approach to address the reduction: Expenses were reduced $161,123, the town had $75,000 in deferred capital and used $200,000 of the its economic uncertainty reserve.

Also, the town has a fund balance of about $9,146,888 at the end of the fiscal year on Sept. 30, 2021. The total is the equivalent of 201 days. The town has a reserve policy requirement of 90 days.

“We plan to come back to [the commission], as we go into the next quarter, with [a] discussion about reserve policies, but we’re still in a very good position, well above our target financially,” Harmer said.

State revenue forecasting shows reduced revenues in the half-cent sales tax, municipal revenue sharing tax, communication service tax and fuel taxes. There are also forecasted reductions in franchise fees, infrastructure tax and tourist development tax.

Harmer highlighted several of the highlights of the fiscal year 2021 budget, including the ongoing underground utilities project, the renovations to the town’s fire stations, beach bond project and phase two of the Town Center Green project.

There are some areas where Longboat Key will get creative financially.

The town is planning to reduce its commission contingency from $250,000 to $225,000 to pay for the St. Armands Circles pedestrian crossing guard program. The pandemic prompted the discontinuation of the program earlier this year. Longboat Key, the city of Sarasota and the Florida Department of Transportation evenly split the $21,000 cost earlier this year.

The Tennis Center is also increasing its fees as of Thursday, which is the first day of the new fiscal year.

Annual family passes are increasing from $815 to $840, while annual single-member passes go from $590 to $608.