Town moves to final hearing with budget and millage rate
The Fort Myers Beach Town Council conducted the first of two hearings to consider the final millage rate for tax year 2010, and final operating and capital budgets for fiscal year 2009/10 at its meeting Wednesday, Sept. 9. The second and final hearing for both actions is scheduled for Monday, Sept. 21, at 6:30 p.m. in council chambers.
After much debate, FMB Councilman Bob Raymond made a resolution motion to adopt the tentative millage rate at .8187 mils for the upcoming year. This proposed operating millage rate is equal to the roll-back rate, thus no taxes are expected to be raised.
All five council members weighed in with their views before the motion passed by a slim 3-2 count.
Both Vice Mayor Herb Acken and Councilman Tom Babcock were disappointed with the motion and commented that there was no reason not to set the rate at .8670 mils.
“I cannot accept it,” said Babcock. “To take on a new facility, Bay Oaks, and try to make it successful without raising taxes, I see us digging a hole for next year that will be even bigger than this year.”
Acken asked his fellow council members how they proposed to make up the budget shortfall. “The only way we are going to be able to make up any shortfalls is either by dipping further into the reserves or by cutting somewhere with jobs, services or raising fees,” he said. “We have to be realistic.”
Mayor Larry Kiker did not want to increase the run rate for taxpayers in future years and supported the .8187 rate. “We should declare ourselves in survival mode,” he said. “We should be reducing our expenses.”
Councilwoman Jo List mentioned good reason to raise the millage rate due to fiscal responsibilities the Town needs to fulfill, but was reluctant to approve raising taxes. “I’m really hesitant to agree to raise the millage rate,” she said. “It’s not unwarranted, but I’m not convinced.”
Raymond said planning for next year’s budget early will help solve any deficit created by not raising taxes. “The only way that we can make it fair to everyone is to go with the roll-back rate and take that $180,000 from the unrestricted reserves,” he said.
The action nullified the requested motion to adopt and levy a proposed ad valorem millage rate of .8670 mils when the Town Council adopted Resolution 9-16 at its July 20 meeting.
The Town staff cut nearly $700,000 in the FY 2008/09 operating budget halfway through this year. Officials will need to take at least $180,000 out of reserve to balance the FY 2009/10 budget if the final millage rate is set at .8187 mils.
The next public hearing for the Town was to adopt a tentative budget for FY 2010 to make it consistent with the requirements of the Town Comprehensive Plan. The passing of a budget is required by Florida Statute and the Town Charter.
Raymond cited the work from Town staff to cut a significant deficit in operating budget. He believes reserves may stay intact for the most part.
“We never had a year where we have really used the whole budget,” said Raymond. “We may not have to completely dip into that reserve. I honestly believe during the year we will be able to cut some other things as we are going or we will have money left over in other places.”
A resolution motion to adopt a tentative Town operating and capital budget and to set the final budget hearing for Sept. 21 at 6:30 p.m. was passed by a 4-1 count with Babcock dissenting.
BOX
Budget numbers with a tentative millage rate of .8187 mils
n total budget revenues $23,899,489
n breakdown of revenues
nn capital projects funds $7,782,126
nn special revenue funds $7,836,772
nn general operating funds $8,280,591
n 2008 final ad valorem tax amount $2,427,310
n expenditures for total budget $14,799,704
n reserves $4,532,807
n transfers* $4,566,978
*transfers are from special revenue funds to the Capital Projects Fund