Take solace in LBK tax rates

A business guru once told us: It’s easier to manage in a downturn than it is when times are good. 

In a downturn, the strategy is straightforward: Cut expenses. In good times, it’s difficult to resist the urge to spend more, often on expenses you shouldn’t be incurring.

A lot of governments are in that latter position again, now that the economy is growing at 3%-plus rate and property values are rising. They have more money to spend. And we all know this: If you give a government money, it will spend it — and then some and more in the case of the federal government.

In that vein, rare is the instance when a government body receives acknowledgement, credit or big, positive headlines for good fiscal management. But this is one of those instances. 

Even though the town of Longboat Key is benefiting from an almost 4% increase in property values and the resulting $461,000 in new property tax revenue, thanks to Town Manager Tom Harmer and the town staff, the Longboat Key Town Commission this week adopted a budget showing only a 1.27% increase in general fund expenses and only a 0.84% increase in total expenses (including capital expenses) in the next fiscal year compared to fiscal 2017-18.

In addition, the Town Commission voted to reduce, albeit slightly, the town’s property tax rates, which will help offset the county appraisers’ higher valuations:

And if you’re the type who likes to know how your government is spending your money, the table below allows you to see where the big changes are occurring in town spending. All those numbers can make your eyes glaze over, but they give you a sense of what’s happening inside Town Hall. A few of the highlights:

n Town manager expenses are expected to drop $504,789, or 60% in the new fiscal year, thanks to the elimination of an assistant town manager position. But that’s just an organizational shift. Harmer instead has created a new Support Services Department and director that now combines what used to be human resources and purchasing — at a cost of $510,476.

n Public Works expenses are declining $104,417, attributed to the retirement of Public Works Director Juan Florensa, whose salary overlapped with the hiring of Isaac Brownman.

n In response to the recent outbreak of red tide, the commission doubled the red tide contingency budget to $100,000.

n Police expenses, the second largest expense item, which accounts for nearly 20% of the budget, are expected to drop $105,644. Reason: Code enforcement personnel were transferred to the planning department.

n Fire Rescue expenses, the largest expense and 42% of the general fund, are expected to increase $323,917. The increase is attributed to increases in personnel costs — rising pension costs, overtime projections and raises.

Altogether, Longboat Key taxpayers can take comfort in the town’s fiscal management. Sure, there are always places to improve efficiency and trim expenses (e.g. prime target: Fire Rescue); nearly every organization has bloat. But consider this: Across the bay, the poor taxpayers in the city of Sarasota will see their millage rate increase 2.85% on top of any increase in their assessed values. That increase in the city’s millage rate is coming even though property values rose more than 8% the past year.

When you juxtapose Longboat Key’s fiscal management next to that of the city of Sarasota, Longboat Key taxpayers can take solace. With minor blips now and then, the town government has a history of fiscal conservatism.