This post is me… musing out loud about my current upcoming situation as Mayor and the recent public budget planning workshop we had back in April 25, 2019 – which focused mainly on salaries. It’s kind of… me thinking out loud.
I understand now why they suggest four year terms in government… with no background in accounting – it pretty much takes that long to get a basic understanding of city budgets.
The city of Lake Helen just started discussing budget through open public workshops… the budget for next year goes into effect on October 1 of this same year -hence 2019-2020 Budget. So currently as of this post the city of Lake Helen is operating with funds approved in 2018 and is closed out September 30, 2019.
When I was voted in November 2017 as Mayor for our city, we were working with a budget approved by a previous commission. 2018 was the first year that I had a chance to sit through the city budget process. I quickly picked up one thing… the bulk of the ‘revenue’ (money coming into the city via citizen taxes and such) goes to pay for salaries (yup, the warm bodies that are needed 8 hours a day to labor -includes: provide road maintenance, water service, police protection, fire protection, permits, payroll, legal counsel and staff to manage the departments); that big chunk also would include in my opinion… garbage collection. The rest is to pay for other contracted services, phone bills, electric bills, building maintenance, materials, equipment purchases etc. You’re thinking … right? Like, will there be money much left to pave a road? Small cities like Lake Helen, Florida are challenged.
Our city administrator is tasked with preparing a preliminary budget for the commission to review. In all fairness to the city administrator (and her first pony as a city administrator preparing budgets), without having knowledge about the tax revenue it’s hard to really prepare an accurate budget… she is using last year millage of 7.3000 (Taxes: Millage per $1000 – Ad Valorem Taxes-95%). At the same time, it’s a shame that our finance manager Jason Lawrence chose to leave after the departure of the former city administrator. Surely if I were a new city administrator I would want to encourage this valuable staff member – who by the way received recognition from the State of Florida for submitting a well rounded budget last year. The case was the opposite, the city administrator advised me that she encouraged his departure… assuring that she would prepare a well rounded budget.
After adding all other revenue sources which include collecting fees for water utility services, permits etc… plus “a prayer and a hope” should the 1/2 cent sales tax the county has put out for citizen vote which supposedly would add an extra $114,750/per year to the Lake Helen budget – (the verdict will be out after May 21, 2019)
those numbers added up would mean approximately $3,429,093.00 dollars to operate and run our city for the year.
The proposed EXPENSE IS $3,449,790.00
My dilemma is… expenditures exceed the INCOME!
and if you subtract the 1/2 cent sales tax income (because the jury is not out yet)… we are short approximately over $134,000.00!!!
It pains me to say, it’s crazy to even suggest a 7% increase in salaries-which includes the 3% Cost of Living Adjustments aka COLA plus a 4% Merit! I’ll be the first to say that if there were surplus money it would be great to give everyone a merit bonus… but with such a low tax base – surplus money is just not there.
Ever since the economic depression of 2006, the city had to make tough financial decisions. Both public works and the police department down sized, additionally everyone including the commission held back on salary increases. This commission is looking to add to staff, one extra police officer and one extra public works. The strain on the budget is worth providing the service to our citizens.
Even with the annexation of the property called “AutoMall” – which has not been developed and it may be a bit longer before we see revenue coming from that business – if any business at all!! This is no time to be spending money that is not here yet… that would be fiscally irresponsible.
I suggest citizens do the math. It’s not complicated… it’s common sense.
(click to enlarge image) This image shows the payment to staff: administrative, public works & parks, police department and commission salaries with a proposed 3% COLA raise and 4% Merit Increase -as well as department head adjustments(commission receive no merit).
The cry for “lower taxes” will be heard – again, and until the city can increase revenue source without taxing it’s people, I believe in a conservative budget such as the last option offered.
(click to enlarge image) Below image shows the payment to staff: administrative, public works & parks, police department and commission salaries with the 3% Cost of Living Adjustments -as well as department head adjustments.
For the full proposed details of income/expenses follow this link:
Full city of Lake Helen 2019-2020 Budget Proposal.
