BRADENTON BEACH – Paid parking and potential future millage increases were primary topics of discussion during the city commission’s July 12 budget meeting.
The tentative budget discussed on Tuesday proposes $4.17 million in total city expenditures – an increase of $584,618 from the current fiscal year that ends on Sept. 30.
The commission intends to maintain the current 2.3329 millage rate for the 2022-23 fiscal year that begins on Oct. 1.
A significant portion of the city’s expenses will be covered by the $2,005,086 the city anticipates receiving in ad valorem property tax revenues. Due to skyrocketing property values, the city anticipates a significant increase in ad valorem property tax revenues in the coming fiscal year.
City Treasurer Shayne Thompson told the commission this equates to a $291,521 increase in property tax revenues for new fiscal year. He said the city usually sees a $120,000 to $140,000 annual increase in property tax revenues as property values increase by an average of 6-8%, but in this current fiscal year, property values have increased by approximately 17%.
“That is an anomaly, plain and simple. The raise in property values this year is certainly not the norm. Without that increase, we would probably be faced with a millage increase, like it or not,” Thompson told the commission.
Higher property values mean property owners will pay higher property taxes and Mayor John Chappie said the commission does not intend to adopt a lower rollback millage rate that would generate the same amount of property tax revenues as last year while lowering the millage rate for city taxpayers.
Thompson said the city’s reserve fund has been drawn down in recent years and needs to be replenished, and small annual millage increases may be needed in future years to accomplish this.
Thompson said a one-tenth of a percent millage increase on a home with a $1 million assessed value would result in the property owner paying an additional $100 in property taxes. According to Thompson, a one-tenth of a percent millage increase would generate approximately $85,000 in additional property tax revenues during a single fiscal year.
Chappie and Commissioner Jan Vosburgh said they would not support a millage increase this year and they hope to avoid doing so in future years.
Police Chief John Cosby said, “Every year for the past five years I have told you that you need to raise the millage a little bit every year. I do agree with Shayne that it’s something to keep in the back of our mind. I don’t think we’re in trouble yet, but I think next year will be the year we really have to look at it. I think you should heed Shayne’s advice that going up a little bit every year at some point is not going to hurt.”
Chappie noted the commission intends to discuss paid parking in city-owned parking lots as a possible means of generating additional city revenues. That work meeting is scheduled for Tuesday, Aug. 30 at 9 a.m.
Potential paid parking locations include the city-owned portion of the parking lot behind the BridgeWalk resort, the city hall parking lot and the unpaved parking lot near the Public Works Department building.
In recent months, Cosby has repeatedly told the commission the police department is underfunded and understaffed when it comes to policing a city that receives thousands of visitors on any given day. During the budget meeting, he mentioned paid parking as the most likely revenue source for additional policing and also replenishing the city’s reserve fund.
“Paid parking is it. We’ve got to get it back from the people that are coming here and enjoying our amenities, and the only way to do that is paid parking. That could generate a lot of revenue. That would take care of your concern and Shayne’s concerns,” Cosby said.
“I’ve done a little research and Pinellas County just went to $7 an hour for paid parking. It’s an option we need to look at. Your citizens have already told you they want you to find a way to generate revenue outside of a tax increase and this is one way to do it,” he added.
Cosby said the city’s current reserve fund would cover approximately 20-25% of the city’s annual expenses, but a coastal community that’s more prone to storm and hurricane damage should really have a reserve fund that would cover $30-35% of the city’s operating expenses.
“This city has to rely on itself until FEMA can get here to help us. We’re going to have to be self-sufficient and we’re not there yet. When we do the paid parking, we have to really look at how we’re going to distribute that revenue. I think a percentage of that revenue should automatically go into reserves so we can build a good strong reserve,” Cosby said.
Other budget matters
As is the case each year, the city’s largest expenses are employee salaries, benefits and retirement fund contributions. City Clerk Terri Sanclemente told the commission that due to budget constraints, she and the other department heads are requesting a 6% cost of living adjustment (COLA) increase for all city employees but are not requesting any additional salary increases.
The police department budget includes enough money to hire one more officer at an approximate cost of $100,000, including the officer’s annual salary and employee benefits.
According to Thompson, the city has received to date $320,296 in American Rescue Plan (ARP) funds from the federal government and expects to receive an additional $320,296 before the current fiscal year ends.
The ARP fund expenditures included in the 2022-23 fiscal year budget allocate $37,000 for the public works department to buy a new pickup truck and a new GEM cart, $88,000 for two new police vehicles, $20,000 for a Polaris-like ATV to be shared by code enforcement and the police department for beach patrols and $66,600 for server upgrades for the city and police department computer systems.
The budget remains a work in progress and will be finalized and adopted during two public hearings in September.
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Bradenton Beach commissioners to consider charging for parking
