'Still a lot of unknowns': Longboat Key town manager says of COVID's impact on budget

The town of Longboat Key is continuing the track the impacts of COVID-19 on the remainder of the 2020 fiscal year budget and the upcoming budget due to start in October.

By Saturday, Town Manager Tom Harmer is required to develop what’s called a recommended budget.

Town commissioners are expected to vote on the fiscal year 2021 budget after their summer recess. The first reading is scheduled for Sept. 14, and then commissioners are set to vote again on Sept. 29 for final approval.

The current fiscal year ends Sept. 30.

Harmer is working with Town Finance Director Sue Smith each month to compare how far off town revenue totals are compared to estimates made to account for the financial impacts related to COVID-19.

“Generally, we were fairly safe in our estimates, and so the numbers are a little bit better than we projected back at mid-year.”

For example, the general fund has gained $47,693 since the mid-year estimate with a revised loss of $225,833. Among those sources of revenue accounting for the estimate: FPL franchise fee, the half-cent sales tax, state revenue sharing and the communication service tax.

“With the spike in cases hitting Florida in June, it is hard to tell if the public will continue to take a chance and go out or if some will stay at home,” Smith wrote about sales tax revenues in a report submitted to Harmer on July 24.

All other funds have gained $35,003 — the Sarasota Infrastructure Surtax, the Manatee County Infrastructure Surtax and gas taxes — with a revised estimated loss of $322,871. 

“There are still a lot of unknowns as we look out to the rest of this fiscal year and into FY21 and we will continue to monitor on a monthly basis,” Harmer wrote in an email to commissioners.

Moving forward, Harmer and Smith plan to update these projections.

Harmer also mentioned a slight decline in property tax revenue because of the valuation of Longboat Key’s properties.

“Overall, our certified values were down a little bit this year, so we had a little bit of loss of revenue there,” Harmer said. “That was due to the Sarasota [County] side. Manatee [County] was up. Sarasota [County] was down. We’ve been advised it’s mostly due to condo values, but we’ve held our tax rate flat.”

Town commissioners voted 7-0 on June 30 to set the town’s maximum millage rate at 2.1144, which has gone unchanged since the 2017 budget.

Estimates provided by the tax appraisers' offices in Sarasota and Manatee counties show Longboat Key’s overall property value are expected to decrease slightly, but still remain above the $6 billion mark.

The town is estimated to collect more than $12 million in property taxes. About 75% of the town's general fund comes from property taxes.

Fiscal year 2021 runs from Oct. 1, 2020, through Sept. 30, 2021.