Millage rate, town staffing key focus of Longboat budget hearing

The first public hearing for Longboat Key’s final 2024 fiscal year budget reduced the town’s millage rate and sparked conversation about new staff positions. 

Town Manager Howard Tipton and the Finance Department brought forth the recommendation to reduce the millage rate to 1.9600, down from the 1.9850 millage rate Tipton recommended in August. 

After discussion from commissioners, District 1 Commissioner Gary Coffin saw no problem in the 1.9900 millage rate. But he was the only commissioner who initially was hesitant to roll back the rate. 

The commissioners approved the reduced millage rate 7-0.

Ad valorem revenues were $43,940 higher than the June property value estimates when the July 1 certified property values were released, which lead to the staff’s recommendation of a 1.9850 rate in August. 

The certified property values were up 13.11% from fiscal year 2023. 

Further review found an excess reserve of $216,647. This led Tipton and the Finance Department to reduce the millage rate further, to 1.9600. 

Due to the increase in property values even with the new millage rate, there is an increase of $1,580,016 in ad valorem revenue. The total ad valorem revenue for the 2024 fiscal year is $15,718,886. 

The total millage for gulfside residents is now 2.6712, and 2.1708 for bayside residents. 

There was a net increase of $14,256 in General Fund expenditures. Additionally, a contingency fund of $110,000 was added to the Building Fund for the new Accela Software project. The software will help the Planning, Zoning and Building Department with permitting and inspections. 

Finance Director Sue Smith and Tipton both acknowledged that the increased investment in town staff was significant. Of the Operating Budget, 81.5% of the fund goes towards wages and benefits. 

Vice Mayor Mike Haycock voiced his opinion about staff cost increases. He said he is aware of some criticism toward the increase, but expressed his support. 

“In spite of the criticism, I think it’s a very sound budget and is very consistent with our strategic plan,” Haycock said. “Personally, I’m happy that we got a town manager that’s willing to stick his neck out a little bit and add the employees he thinks are required to keep our satisfaction levels.” 

Commissioner-at-Large BJ Bishop and District 5 Commissioner Debbie Murphy backed Haycock’s statements and voiced support of the increased investment in personnel. 

Personnel concerns

Longboat Key resident Jim Whitman said that several other residents have expressed concern about the increase in personnel costs.

“I’m not talking about pay adjustments, benefit adjustments, increase based on inflation, any of that,” Whitman said. “I’m talking about the increase in the headcount.” 

He suggested some positions could be contracted out, and questioned the need for some of the full-time positions, such as in the building analyst and position in the fire rescue department. 

In response, Tipton reinforced the need for the analyst in stating the implementation of the Accela Software will be a long-term project, and other departments could need similar upgrades. 

District 1 Commissioner Gary Coffin also commented, saying he heard of issues stemming from the fire department being understaffed. He also said with future business expansion, positions like another inspector are necessary. 

Total expenditures for the General Fund for the proposed budget now total $25,695,614. But $5.1 million of those expenditures come from one-time transfers from the fund balance that was available for capital projects. 

Those projects are primarily highway infrastructure, like work on the Broadway Roundabout, digital display boards, road resurfacing and streetlights. 

“One-time moves in and out of a budget can be misleading to budget trends, I understand that,” Tipton said. 

For this upcoming fiscal year, Tipton said the town had the opportunity to put these funds to use and, if completed, the budget will go down by that amount next year. 

The resolution to tentatively approve the budget was approved 7-0 by the town commission. The final public hearing for the fiscal year 2024 budget will be held on Sept. 26 at 5:01 p.m.