Council mulls variety of budget subjects
Fort Myers Beach Town Council had its preliminary reading and staff report on the town budget for the upcoming fiscal year Thursday.
The main take aways are few, since the budget hasn’t changed much from the previous year, but a couple of topics and price ranges were of slight contention, with “optics” being a major concern.
“Our budget process is supposed to be as clear as possible; we put this out to the public to explain what their money goes towards and how we spend it. There needs to be a more concise vision and transparency in what money and grants are coming in and what isn’t,” Councilmember Rexann Hosafros said.
Last year’s General Fund budget finalized at $7.54 million. The working FY2020 budget is slightly lower, at $7.06 million.
The current millage rate of .87 mill has an option of being raised to .95, depending on final budget, but the budget, as is, can be accomplished with the current .87. Council has shown strong support for a boost to the .95 mills set as this year’s ceiling, but the final rate will be voted on until the public hearing process which begins in September.
The town property tax levy on a Homesteaded home on the Beach with a taxable valuation of $300,000 at the current .87 rate would be $261 per year. At the possible .95 rate, this increases to $285, which Council agrees isn’t a major leap.
“The overall tax increase isn’t as heavy as it is on first glance. My own taxes would go up about $21, which I would be happy to give to make sure these studies and projects get funded,” Hosafros said.
Staffing, especially contracting, is of immense concern to Council, but more for transparency reasons than funding.
“Our biggest concern about staffing is money, at the end of the day,” said Mayor Anita Cereceda. “Contractors are fine if you can quantify it. Tell me how much we are saving over what period of time by contracting some positions out.”
This was echoed in the chamber. While contract workers aren’t a huge population of the current staff, the cost is under some scrutiny.
“I have an issue with how to reconcile our personnel spending,” Hosafros said. “There are a lot of numbers on this budget that aren’t represented, some contract employees are on here, but others are not. I think the budget needs better break downs on what kind of employee they are, part time or full time, and what positions we have contractors spread across.”
Bay Oaks has come up on the Council and from the community several times. The park has need of funding, and an eventual rebuild of parts of the facility. Council doesn’t believe the Town can fund, in full, the project in a single year, even with an increased property tax rate.
“But we’re looking into alternative sources of money: grants, borrowing, and stowing away funds as guarantees for the project at a later date,” Hosafros said. “We want Bay Oaks to succeed, but funding is a hurdle.”
The Council has put forth possibly taking over the bus shelter project entirely from the county, negotiating their own advertising with local businesses and using portions of the gas tax to cover the cost of yearly maintenance.
An ongoing concern is impact fees and how the Beach’s portion stacks up against the rest of the county’s.
“It’s something we’ve just matched up with Lee County’s measurements so far, but we definitely need to proceed on a study of our own, should the council agree,” Town Manager Roger Hernstadt said.
Water usage and conservation has been a major concern, but the town says there’s very little loss at this point in time.
“We’re actually positive on water usage, we’re experiencing very little water loss. Last rate study in 2016 was done to finalize our development ratio, and we’re planning to do one within the next year,” said Christine Cory, Water Utility manager.
The budget will be discussed again at 9 a.m. on Sept. 5 at 2525 Estero Blvd.
According to the Town’s 2020 budget proposal, budget highlights and talking points include:
– Bus shelters have been estimated at $15,000 a year, of which six new ones at minimum will need to be purchased and placed. Secondary Gas Tax has allocated $100,000 for bus shelters.
– At the millage rate of .8700, Ad Valorem Taxes would produce $2,954,150. The current millage rate of .87 has an option of being raised to .95 depending on final budget, but the budget as is can be accomplished with the current .87. Council has shown strong support for the .95, but will be voted on as an edit at a later date.
– This will be the second year of the town operating its own Building Services Department. Previously the permitting function had been administered by Lee County and all permit revenue was collected by the town and remitted to the county plus a lump sum payment of $44,000. The revenue projected for FY 2020 is $952,000.
– Contract workers, while paid by the town, aren’t labeled clearly enough in the budget for the council.
– Optics and visibility of the budget once it reaches an agreed upon status
– FEMA has paid out $500,000 in hurricane maintenance and assistance thus far.
– Signage on the back bay for manatee zones, which are idle speed zones.
– Sidewalks on Bay and School streets.
The town passed a new Short Term Rental Fee which reflected in this year’s budget, estimated to generate approximately $120,000.
– Health Insurance will increase 8 percent or $40,000- Flood Insurance premiums are projected to increase by 15 percent.