Council adopts final budget/ seeks Town Hall
The Fort Myers Beach Town Council adopted final budgetary numbers for fiscal year 2011-12 during two separate hearings at Town Hall Monday evening. The local government body also discussed options for a Town Hall acquisition.
The Beach millage rate at 0.8144 mils received unanimous approval for the next tax year. The overall budget amount of $18,691,193 with a total general fund of $5,561,551 was passed by a 4-1 count with Mayor Larry Kiker dissenting due to the use of reserves involved in the budget.
The Town is expected to expend $185,527 out of reserves for the next budget cycle.
“I own a business, and I never planned on losing $185,000 ahead of time,” said Kiker. “To me, that is kind of what we are doing. We are supposed to cut expenses by $185,000, not borrow money from savings.”
Vice Mayor Bob Raymond referred to the reserve amount as “almost a subsidiary” to keeping the general operations of Bay Oaks Recreational Campus ongoing.
“If you have to get a feel from where it’s coming from, the poster child of that is Bay Oaks,” he said.
At the tentative budget hearing on Sept. 6, Town Manager Terry Stewart remarked that the Town is “in excess of 75 percent of undesignated reserves” and that “many communities around Lee, Charlotte and Collier counties are operating on maybe 5 or 10 percent of their annual general fund budget in reserves.”
“Thank goodness that we are in a position to have the reserves that we do,” he said.
Though the Town budgetary numbers are lower than 2010-11, many residents expressed concerns about the implementation of a Public Service Tax to work as an offset to lowering ad valorem taxes and diversify expenses. Beach businesses owners were more worrisome for the new 10 percent electric tax, which will begin in April and be implemented quarterly. “I understand the diversification, but this is not the right time to do that,” said FMB Chamber President John Albion. “Businesses cannot continue to take these hits on this island.”
Town Manager Terry Stewart explained that businesses could write off the tax as a business expense. Other public comment concerns focused on nonexistent residential tax write-offs as well as double tax for condo owners.
Beach resident Lee Melsek asked Council members if they would promise that ad valorem taxes would be reduced next year once the Public Service Tax in effect for a full year. There were no guarantees.
“This (tax) is not to increase the Town revenue,” said Councilwoman Jo List.
Stewart said he felt offended with comments from people thinking the Town is playing a ‘shell game’ with the new tax.
“This has been talked about repetitively at these Council meetings,” he said. “It has been explained in detail. It is going to be different for everyone as to how much it affects their overall costs one way or another depending upon the electrical usage and things of that nature. We’ve done the best estimate that we could do based upon the information we were given from FPL. I think it is incumbent of us to report back to Council on an routine basis in the collection of those revenues in either exceeding or falling under the expected revenues.”
The Town manager reported the next budget cycle would have a better reflection on how closely his staff will be able to estimate how the taxes are. He said the Council would be able to make adjustments at that time.
The Beach mayor stated Town budget discussions have been going on for quite some time and have involved two previous hearings before Monday’s final one to set the 2011-12 numbers. Eleventh hour solutions are difficult to come by.
“We need to open up this dialogue a little bit more to understand some of these concerns,” said Kiker. “We’ve been talking about this (tax) for a long time, so it’s kind of shocking to hear these concerns at the last minute.”
Council approves bond referendum for Town Hall acquisition
Council unanimously agreed to put out a public referendum to see if Beach residents would agree that Town officials should seek to purchase a building to act as a Town Hall somewhere on the island.
The Town is involved in a three-year lease at its current address. The landlord has stated it has no desire to sell the property.
The referendum election, which would be at no cost to the Town, would occur on the date of Presidential Primary Election (believed to be in January 2012). If the referendum doesn’t pass, Town officials may entertain a long-term lease option.
The move-in cost was reported to be in the $7 million range.
“The goal is to put forward a referendum that if the voters choose to support this, then we can go forward with it,” said Kiker.
Surf Club gains exception for outdoor consumption
Council unanimously approved Surf Club and Owner Bruce Cermak to have a special exception in the Downtown Zoning District to allow consumption on premise of alcoholic beverages in a restaurant providing an outdoor seating area within 500 feet of a dwelling unit under separate ownership.
The exception will allow outdoor alcohol consumption and food service during the hours of 9 a.m. and 2 a.m. Outdoor entertainment will be allowed during the hours of 11 a.m. and 10 p.m. only, due to the existing residential neighborhood behind the establishment.