Council plans to have lower budget than 2010-11
The Fort Myers Beach Town Council moved one step closer to setting its final budget for fiscal year 2011-12 on Tuesday, Sept. 6.
After holding a budget workshop earlier in the day, Council adopted a tentative millage rate of 0.8144 and a proposed budget in the amount of $5,561,551. The intended millage rate is a reduction from its recently approved TRIM rate of 1.100 mils and 0.1000 mils lower than the current tax year’s millage rate of 0.9144 mils. It is also a 14.73 reduction from the roll back rate of 0.9551.
The general fund budget proposal is a $24,703 decrease from fiscal year 2010-11 and current total of $5,586,254. This comes after a reported $104,000 reduction in taxes due to the decrease in Beach property values alone.
“We are able to have our expenses (less total general fund budget money) lower than last year while taking on an additional $598,000 in expenses for Bay Oaks in the past couple of years,” said Councilman Alan Mandel.
Near the outset of the meeting, seven residents vocalized their support for the Beach Library expansion and their dismay in the Town’s alleged actions against it. Council members explained they have never taken a public position for or against the library, but rather learned of the responsibility of upholding Chapter 189 and their obligation to enforce state law.
“We agree with you that this a Lee County responsibility for oversight. We asked the (county commissioners) to exercise their oversight responsibilities,” said FMB Mayor Larry Kiker.
Before the public hearings, five residents spoke in opposition of a proposed Public Service Tax, which would likely come into effect for a six-month period beginning in April 2012 and weigh with a like reduction in the ad valorem revenues. The Public Service Tax was cited to be a more secure funding source as well as a diversified revenue base and, without the 10 percent tax, the proposed millage rate was expected to be 0.9144.
“The net of it is we are keeping the amount of money we are receiving in taxes the same as the year before,” said Kiker. “What that means is that instead of all the money coming from property owners, it also comes from other people who are using some of the services.”
On page five of the Town of Fort Myers Beach FY 2012 General Fund Revenues and Expenditures document, the reported 2011-12 fiscal year ad valorem taxes is $2,057,381 -a reduction of $357,376 from the preliminary (6/20/11) amount of $2,414,757. The Public Service Tax, which would be assessed on the monthly power bills, would bring in $397,367 in revenues.
Kiker was the lone dissenter from both budgetary resolutions due to the proposed use of Town reserves. The Town is expected to expend $185,527 out of reserves for the next budget cycle.
“Thank goodness that we are in a position to have the reserves that we do,” said Town Manager Terry Stewart. “I can tell you that there are many communities around Lee, Charlotte and Collier counties that are operating on maybe 5 or 10 percent of their annual general fund budget in reserves, and we are in excess of 75 percent of undesignated reserves.”
Stewart cited restructuring the Town departments to aid in operational efficiencies. Current Director of Cultural Resources Theresa Schober has resigned effective Sept. 30.
“We’ve pulled Parks & Recreation out from under Public Works and combined it with Cultural Resources,” he said. “We are going to be hiring a Parks & Recreation professional, which we have not had in the past. I expect the restructuring will give us improvements in operating efficiencies and effectiveness.”
Stewart reported the planned budget might come in within one to two percent then what was budgeted 11 months ago. He also addressed comments that the Town staff has increased significantly over the past few years.
“The correct number of employees for the budget we presented to you in full-time equivalence is 51.3 bodies. That gives you an accurate reflection of what your actual number count is,” he said. “Prior to Bay Oaks, we are four bodies different.”
There are no reported merit increase or employee raises in the 2011-12 budget as well as no planned layoffs or reductions in workforce.
Mandel stated the current Town manager’s base salary is exactly equal to the base salary of a past interim manager that served the Town twice in that capacity.
“The only difference is he has some benefits that he is continuing on his own,” he said.
Council will set its final millage rate and budget for FY 2011-12 during a public hearing at its Sept. 26 meeting. The local multi-purpose government cannot exceed the previously set totals for FY 2011-12.
“We are working hard to pay attention to make sure we manage the budget in a fiscally sound manner,” said Stewart.
Seasonal Rental ordinance dropped
Vice Mayor Bob Raymond announced he is dropping draft ordinance 11-05, Residential Rental Registry, after there was much opposition to the setting of more defined rules and regulations to the seasonal rental units on Fort Myers Beach.
“I am withdrawing that ordinance,” said Raymond, during the Council meeting’s Councilman’s Items and Reports. Raymond chaired a Town Hall workshop on the issue Wednesday, Aug. 17.