Longboat Key commissioners give first approval to FY25 budget

Following a summer-long recess, Longboat Key commissioners met for the first meetings of the fall and went right to work to unanimously give first approval to the fiscal year 2025 budget. 

On Sept. 9, town staff presented the FY25 in the first of two public hearings before the official adoption on Oct. 1. Public hearings are also required for the town to set the millage rate at 1.9600, which is the same as the previous year. 

Using the millage rate of 1.9600, the town received an increase of $1,580,544 in new ad valorem revenues since the certified property values were 10.25% higher than last year. 

Other millages are assessed for facility debt (fire stations) and the beach nourishment program, which has different assessments for gulfside and bayside residents. The facility debt millage is 0.0401, and the beach millage is 0.6071 for gulfside residents and 0.1518 for bayside residents. 

For FY25, total governmental expenditures for Longboat Key are anticipated to be $132,769,796, and $24,739,014 of that is in General Fund expenditures. 

Operating expenses come from the General Fund, and wages and benefits account for about 81% of the operating budget. These operating expenses include merit wage increases for general employees and a 10% increase in the employee health insurance policy. 

New town staff included in the FY25 budget includes a town engineer position and 0.5 of a staff member for the Tennis Center, which will turn a previous part-time position into a full-time one. 

The upcoming fiscal year is also a time for major capital improvement projects. The town’s Five-Year Capital Improvement Plan consists of $145.4 million in projects, $76.9 million of which are to be funded in FY25. 

Examples of projects include the $2.5 million interim beach nourishment project near Gulfside Road, a new fire truck, public safety equipment, various park improvements and technology advances such as new smart city technology and digital display boards. 

The capital improvements also include two major infrastructure projects that will require the town to incur a $27 million debt.

First is the Country Club Shores asbestos cement pipe replacement project, which has already started and has a cost of about $9 million. 

But the subaqueous force main replacement is the more costly of the two, with an estimated price tag of $31.4 million to replace the force main buried under Sarasota Bay. 

The town will need to apply for a Clean Water State Revolving Fund Loan which provides for the lowest interest rate out of other options, but requires a referendum in which voters will decide in March 2025 if the town can take on this debt. 

Overall, though, the town’s General Fund budget shows a decrease to the fund balance by about $1,688,390. Total revenues are expected to be $23,070,624, and expenditures will exceed revenues at $24,739,014. 

Despite that, Finance Director Sue Smith told commissioners that the town still has a healthy reserve, and expenditures decreased by $956,600, or 3.7%, from the previous year. 

Mayor Ken Schneier shared his confidence in the staff's budget presentation, stating that the work can be difficult in the current economic climate with inflation rates and the insurance crisis. 

“It’s a difficult time to do this. I think great work has been done over the last six months,” Schneier said. 

Both the proposed FY25 budget and millage rate were approved unanimously in a 6-0 vote, with Commissioner-At-Large BJ Bishop absent. This moves the two resolutions to a second hearing on Sept. 23.