New fiscal year marks significant investments in people, infrastructure

The time to make investments is when times are good, not when times are bad. That’s Town Manager Howard Tipton’s philosophy going into fiscal year 2024. 

A preliminary budget was presented at a Longboat Key Town Commission special workshop on June 20, which outlined the anticipated revenue and expenses for the upcoming fiscal year. The total anticipated budget of $25,611,028 is a 43% increase from 2023’s adopted budget of $17,796,774. 

Of that, $20,511,028 is dedicated to operating expenditures, while the remaining $5,100,000 will go towards capital expenditures. 

Some important but increasing expenditures include insurance. Property and casualty insurance costs increased by 30% and flood insurance increased 20%. Also this part of the budget includes a 15.25% increase in operating and personnel expenses from this current fiscal year. The updated union contracts for Longboat Key Police and Fire Rescue departments contributed to the increase. 

One of the largest investments in personnel comes with the addition of seven full-time positions, six being supported by the general fund and one by the building fund. The six positions for the general fund represent an expenditure of $486,042 and are: an accountant, a grants coordinator, two information technology positions, fire administrative support and a parks service worker. According to Tipton, some of these positions are not new. The positions in fire and IT are returning positions. 

“Prior to the great recession, (the town) actually had a larger manning table than we have today,” Tipton said. 

Tipton said the town is struggling a bit to keep up with grounds maintenance, so they felt a new position in parks service was necessary. This position will also maintain the Town Center, which Tipton said will be completed by the end of the summer. Additionally, Tipton said the finance office wanted to do a better job applying for grants and wanted a position dedicated to that. The town hopes that position will pay for itself.

From the building fund will come the seventh new full-time position, which will be a plans examiner and building inspector. The building department also requested a managing software called Accela. The software costs $450,000 and is a cloud-based software suite that digitizes many processes relating to permitting, building inspections and public safety. 

The building fund also budgets for a town hall hardening project, totaling $1.7 million. This project will make the building more resilient in the face of storms. The Federal Emergency Management Agency is expected to reimburse 72% of project costs, however the town is still waiting for the official confirmation. 

Commissioner BJ Bishop shared the sentiment that now is the time to make these types of investments. 

“Investing in our community with adequate staff and with technology is critically important,” Bishop said. 

Other substantial investments come in the form of one time infrastructure costs. The General Fund Reserve allocates $5.1 million to these capital investments, including a project to calm traffic near Broadway Street, digital display boards, road resurfacing and additional street lighting

Special funds budget revenues primarily come from taxes, such as the Tourist Development Tax and Sarasota Infrastructure Surtax. These revenues have specific guidelines for what they can be appropriated for. 

The Sarasota Infrastructure Surtax is being used to fund projects in public safety, facilities and parks and recreation. For 2024, the town plans to order a new fire truck costing $850,000. Another, relatively small, purchase is $175,000 to install artificial turf in the remainder of the dog park at Bayfront Park. Mayor Ken Schneier brought up the idea of a community member possibly funding this installment, but the money has been set aside in the budget in case there are no prospects.  

The gas tax is a main source of funds for much of the Road and Bridge Fund, which can only be used on infrastructure such as roads, bridges and traffic signal maintenance. Tipton and other commissioners discussed how this important revenue source may be changing in the near future. 

“I think FPL has forecasted that one in four cars will be electric by 2027 on the roads in Florida, which is a dramatic decrease in gas tax revenue,” Tipton said. “Finding whatever that alternative solution is I think will be important, and sooner is better.” 

Another big source of revenue for the town comes from property taxes. According to the budget, property values have increased 12.75% (14.06% in Manatee County and 12.16% in Sarasota County). The millage rate was recommended to go unchanged from 2022 at 1.99, which will provide about $1.78 million of additional revenue with the increase in property value compared with 2022. This comes to a total property tax revenue of $15,915,542 if this millage rate is used. 

“Longboat Key is in the enviable position of being the lowest (millage rate) in the surrounding communities,” Tipton said. “I think that reflects both good fiscal stewardship and just very strong values for our community.” 

A final proposed budget is due on or before Aug. 1, with a first reading expected on Sept. 11. The budget will be adopted Sept. 30 before the fiscal year officially begins on Oct. 1. 

Correction: This article has been updated to correct one of the new position titles from Building Analyst to Business Analyst. A clarification was also made in regards to the role of the Parks Service Worker.