ANNA MARIA – The city commission plans to maintain the current 2.05 millage rate for the ad valorem property taxes collected in the coming 2022-23 fiscal year.
The current 2021-22 fiscal year ends Sept. 30 and the new fiscal year begins Oct. 1.
Mayor Dan Murphy and the city commission participated in budget planning meetings on July 14 and July 28 and will participate in a third budget meeting on Thursday, Aug. 11 at 1:30 p.m.
Anticipated 2022-23 revenues were the topic of the July 14 meeting and anticipated operating expenses were the topic of the July 28 meeting. Anticipated capital and core project expenditures will be the topic of the Aug. 11 meeting. The three primary capital and core projects being budgeted for in the 2022-23 fiscal year are street paving, stormwater and drainage improvements and the Pine Avenue sidewalk, crosswalk and lighting improvements.
Millage rate
On July 28, the commission unanimously supported Murphy’s suggestion to tentatively adopt a 2.05 millage rate for the 2022-23 budget year. The tentatively adopted millage rate can still be decreased before the final budget is adopted in September but it cannot be increased. According to the July 28 discussion, a lower millage rate is unlikely.
According to the projected revenues sheet Murphy provided the commission on July 14, higher than usual increases in property values and maintaining the same 2.05 millage rate will provide the city with an additional $609,329 in ad valorem property tax revenues. The city anticipates receiving $3.57 million in property tax revenues in 2022-23 compared to $2.96 million in the current 2021-22 fiscal year.
Revenues
The city anticipates receiving $11.2 million in total city revenues for the 2022-23 fiscal year – a 32% increase from the $8.5 million listed for the 2021-22 fiscal year.
The additional revenues include a $1.28 million state appropriation for the Reimagining Pine Avenue project and $500,000 from Manatee County for the installation of a Mote Marine educational outreach center on the City Pier.
The projected 2022-23 revenues include $1.4 million in stormwater revenues received from three sources: the Southwest Florida Water Management District, FEMA and the annual stormwater fee assessed to Anna Maria property owners. Those funds will be used to expand, improve and maintain the city’s stormwater and drainage systems.
Murphy anticipates a slight decrease in the intergovernmental revenues received from other governmental agencies. He said this is due to the ½ cent tax revenues received from Manatee County decreasing from $128,647 to an anticipated $85,219.
Murphy noted the ½ cent tax revenues approved by county voters several years ago are shared with the cities in Manatee County using a population-based calculation method. Murphy said the decrease in Anna Maria’s share of the ½ cent sales tax revenues is due to a decrease in the city’s population. According to the U.S. Census Bureau, Anna Maria’s population was 1,503 people in 2010 and 968 people in 2020.
The $710,019 in anticipated intergovernmental revenues also includes $240,447 in gas tax revenues.
Murphy tentatively estimated $375,000 in annual vacation rental registration fee revenues, but he expects that to increase before the final budget is adopted because the city is still researching the annual expenses associated with the administration and enforcement of the city’s vacation rental ordinance. The occupancy-based registration fee is based upon those anticipated expenses, including salaries and equipment, and is not intended to generate any additional revenues for the city.
The city anticipates receiving $280,000 in parking and code enforcement fines. The revenue sheet also references an $83,312 payment the city received during the current fiscal year for fines associated with an unregistered vacation rental.
Murphy said the owner of a vacation rental home on Magnolia Avenue refused to register the home as a vacation rental. After warning the homeowner and taking the case before the city’s special magistrate, the city placed a lien on the property. The homeowner was fined $500 per day and when the home was sold, the city received $83,312 as a result of the lien. The city is currently dealing with a potentially similar situation involving an unregistered two-unit vacation rental home at 714 Jacaranda Road.
The city anticipates receiving $1.1 million in license and permit fees, including $650,000 in building permit fees and $75,000 in planning fees.
Expenditures
During the July 28 meeting, Murphy provided an overview of the $4.85 million in anticipated operating expenditures for the 2022-23 fiscal year. Murphy said most of the anticipated operating expenditures include 5-7% inflationary increases. He noted the operating expenses do not include the capital and core project expenses to be discussed on Aug. 11.
Murphy’s proposed budget includes a 6% Cost of Living Allowance salary adjustment for all city employees, with no additional raises given this year.
As usual, the city’s largest single operating expense is the $1.13 million budgeted for the law enforcement services provided by the Manatee County Sheriff’s Office’s Anna Maria Unit. Murphy said that cost is increasing by 10%, due primarily due to the salary increases being given to county deputies.
The city anticipates spending $948,735 on administration department salaries and expenses, $947,125 on building department salaries and expenses, $695,415 on public works department salaries and expenses, $545,447 on code enforcement department salaries and expenses and $293,329 on parks and recreation.
