Three Anna Maria commissioners met with Mayor Dan Murphy Aug. 3 to discuss and prepare a 2016-17 fiscal year budget.
Murphy presented Commissioners Doug Copeland, Chuck Webb and Dale Woodland with revenue projections for the coming fiscal year, which begins Oct. 1. Commissioners Nancy Yetter and Carol Carter were absent.
During the meeting, the mayor identified and explained differences in figures from the present budget and the 2016-17 draft. He compared the current yearʼs expected revenue with year-to-date totals and updated forecasts for year-end expenditures.
The projected revenue for the 2016-17 fiscal year is $3,233,883, up from this yearʼs projected $3,046,527 and over half a million dollars above the expected year-end revenue total of $2,829,977.
One of the biggest surprise expenses of the 2015-16 budget is attorney fees. The city budgeted $60,000 in fees in anticipation of Bert Harris Act claims, but the city has wracked up $144,250 in attorney fees year-to-date — and possibly exceeding $170,000 by the end of the fiscal year.
“Mea culpa,” Murphy said. “It’s my fault.”
Murphy proposed budgeting $150,000 for attorney fees in 2016-17. However, the mayor said revenue from vacation rental fees is projected to fully cover the Bert Harris legal costs. The city has projected $454,700 in fees from vacation rentals in the new year.
Webb noted the irony of using vacation rental fees to pay the attorney. City attorney Becky Voseʼs primary work in the past several months has been tackling Bert Harris Act claims brought by vacation rental owners. “So theyʼre paying to sue themselves?” Webb asked.
Other major revenue changes include a $191,542 increase in ad valorem taxes to $1,769,243; a $5,750 increase in earned interest of $7,750; and sales and fuel tax increases.
The city will not receive funds from the Lake LaVista Dredge Grant as it had in the past due to a lack of public access spaces in the canal.
Murphy said an Aug. 10 budget meeting would include project plans to address public access slips.
Although project planning and expense discussion is scheduled for Aug. 10, the mayor explained Aug. 3 some planned expenditures, such as a projected pay increases for employees.
City staff would receive a 1.5 percent base pay increase and a 1.5 percent lump sum payment in the 2016-17 fiscal year. Lump sum payments are common for the city and were distributed in July of this fiscal year, according to the mayor.
Murphy also plans on improving the cityʼs telecommunications, which he described as “literally a 1980s telephone system.”
The improvements would allow the city system to connect to the annex housing the code enforcement department and the building department.
The next scheduled budget meeting will be at 6 p.m. Wednesday, Aug. 10, at city hall, 10005 Gulf Drive.
The final draft budget meeting is scheduled for 6 p.m. Wednesday, Aug. 17.
Public hearings will be held Wednesdays at 6 p.m. Sept. 7 and Sept. 21..