Council works toward final budget adoption
The Fort Myers Beach Town Council looked at different ways to review and discuss proposed budget numbers for upcoming fiscal year 2011-12 at a work session Tuesday, Aug. 23. The workshop, involving the Town’s general fund budget, enabled Council members to work towards setting a tentative and final millage rate during public hearings at their next two regular meetings in September.
The Council looked at alternative funding ideas utilizing different property tax rates, but consensually agreed to somehow keep those rates at or near last year’s numbers while balancing that figure with an estimated overall revenue drop of roughly 7 percent. The Town’s total budget for all funds, sources, uses and water utility is $19,073,261.
“What we are trying to do is run a variety of different options to cut expenses and in some cases cut services or use general fund reserves or other reserves,” said Town Finance Director Evelyn Wicks to Council members. “I think the easiest way to approach it is to tell us what your goals are and we will try to see if we can fit them into one of these scenarios.”
Many of the officials weighed in during the two-hour discussion. It was reported Town has six months of operational reserve on hand and the general government reserve minimum is roughly three months worth.
“I’m dead against using reserves to fix a budget problem,” said Mayor Larry Kiker.
Town is currently running on a 0.9144 millage rate and a 0.9551 roll back rate. There has been a reported $104,000 reduction in taxes due to the decrease in Beach property values alone. In June, Council set a Truth in Millage Rate at 1.1 mils and plans on working down from that number before the final budget is set.
“I’d like to stick at the point where we were last year,” said Vice Mayor Bob Raymond. “I don’t really have a problem with using some reserves. But, if in fact we are going to use some, then we should start planning in October how we are going to get back (to the original amount) the following year.”
Council members were at sides in making significant cuts to either Town personnel at Town Hall or at Bay Oaks. Talks also centered on cuts to Parks and Recreation services and closing the Community Pool for longer than one month.
“There is no way we can accomplish what we are talking about today without affecting almost every element of what we do here. And, I’m talking about significantly affecting those areas,” said Town Manager Terry Stewart.
“Reserves are tax payers’ money, not our money. Our bills as a Town are what the citizens expect us to do for them. And they say this is what we want in exchange. Reserves are used to make ends meet,” said Councilwoman Jo List.
Stewart reported a $300,000 increase in expenditures from last year’s budget. That number and the decrease in revenue leave a bigger gap. There was discussion of implementing a Public Service Tax.
“I think we can carve out about $180,000 to $200,000 out of the budget,” he said. “If the Council can give us just a little leeway utilizing some reserves and play with the Public Service Tax, I’ll come back and make some recommendations to you.”
Council must set a tentative millage rate and make a determination on what the budget will be during its Sept. 6 meeting at 6:30 p.m. A workshop is being planned for 9 a.m. that day to see what staff proposes.
The final budget is slated to be approved Sept. 26, at 6:30 p.m.