ANNA MARIA — The City Board plans to maintain the current rate of 2.05 miles for ad valorem property taxes collected in the upcoming 2022-23 fiscal year.
The current 2021-2022 fiscal year ends on September 30 and the new fiscal year begins on October 1.
Mayor Dan Murphy and the City Commission participated in budget planning meetings on July 14 and 28 and will participate in a third budget meeting on Thursday, August 11 at 1:30 p.m.
Projected revenues for 2022-23 were the subject of the July 14 meeting and projected operating expenditures were the subject of the July 28 meeting. Planned base capital and project expenditures will be the subject of the August 11 meeting. The three major capital and base projects budgeted for fiscal year 2022-23 are street paving, stormwater and drainage improvements, and improvements to sidewalks, crosswalks, and traffic. Pine Avenue lighting.
Mileage rate
On July 28, the commission unanimously backed Murphy’s suggestion to tentatively adopt a 2.05 mileage rate for the 2022-23 budget year. The provisionally adopted mileage rate can be further reduced before the adoption of the final budget in September, but it cannot be increased. According to the July 28 discussion, a lower mileage rate is unlikely.
According to the projected revenue sheet Murphy provided to the commission on July 14, higher than usual increases in property values and maintaining the same 2.05 mile rate will provide the city with an additional $609,329 in ad valorem property tax revenue. The city expects to receive $3.57 million in property tax revenue in 2022-23, up from $2.96 million in the current 2021-22 fiscal year.
Revenue
The city expects to receive $11.2 million in total revenue for the 2022-23 fiscal year, a 32% increase from the $8.5 million reported for the 2021-22 fiscal year.
Additional revenue includes 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.
Projected revenue for 2022-23 includes $1.4 million in stormwater revenue from three sources: Southwest Florida Water Management District, FEMA, and annual stormwater fee imposed on the landowners of Anna Maria. These funds will be used to expand, improve and maintain the city’s stormwater and drainage systems.
Murphy anticipates a slight decrease in intergovernmental revenue received from other government agencies. He said that’s because the 0.5-cent tax revenue from Manatee County fell from $128,647 to $85,219.
Murphy noted that the 0.5 cent tax revenue approved by county voters several years ago is shared with towns in Manatee County using a population-based calculation method. Murphy said the decrease in Anna Maria’s share of sales tax revenue by 0.5 cents is due to a decrease in the city’s population. According to the U.S. Census Bureau, the population of Anna Maria was 1,503 in 2010 and 968 in 2020.
The $710,019 in projected intergovernmental revenue also includes $240,447 in gas tax revenue.
Murphy tentatively estimated annual revenue from vacation rental registration fees at $375,000, but he expects that to rise before the final budget is passed as the city is still considering annual expenses associated with the registration fee. administration and enforcement of the City’s Vacation Rental Ordinance. The occupancy-based registration fee is based on these anticipated expenses, including salaries and equipment, and is not intended to generate additional revenue for the city.
The city expects to receive $280,000 in parking and code enforcement fines. The revenue sheet also references an $83,312 payment the city received in 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 notifying the owner and taking the matter to the city’s special magistrate, the city placed a lien on the property. The owner was fined $500 a day and when the house was sold, the city received $83,312 due to 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 expects to receive $1.1 million in license and permit fees, including $650,000 in building permit fees and $75,000 in planning fees.
Expenses
At the July 28 meeting, Murphy provided an overview of the $4.85 million in planned operating expenses for the 2022-23 fiscal year. Murphy said most of the planned operating expenses include inflationary increases of 5-7%. He noted that operating expenses do not include basic capital and project expenses which will be discussed on August 11.
Murphy’s proposed budget includes a 6% cost-of-living allowance wage adjustment for all city employees, with no additional increases granted this year.
As usual, the city’s largest operating expense is the $1.13 million budgeted for law enforcement services provided by the Anna Maria Unit of the Manatee County Sheriff’s Office. Murphy said the cost was rising by 10%, primarily due to pay increases given to county deputies.
The city plans to spend $948,735 for administrative department salaries and expenses, $947,125 for building department salaries and expenses, $695,415 for public works department salaries and expenses, $545,447 for salaries and expenses of the code enforcement department and $293,329 for parks and recreation.