The city of Anna Maria has a tentative budget ready for fiscal 2023-24.
Now, a finalized budget will have to pass through two public hearings before it is adopted.
Mayor Dan Murphy presented a summary Aug. 24 of the city’s tentative $14,626,014.44 budget for the upcoming fiscal year, which begins Oct. 1.
City officials already have met three times to discuss different sections of the proposed budget — the city’s capital plan, revenues and expenses.
The Aug. 24 meeting was the first time the proposed budget was presented in its entirety.
The proposed $5,548,172.08 increase over the current year’s spending plan can be attributed to a few sizable changes.
The biggest change is an almost $3 million increase to the city’s public works budget, from $736,652.98 this year to $3,674,634.46 in fiscal 2023-24.
That increase is due to $3,349,634.46 for the city’s “reimagining” Pine Avenue project.
The funding includes $1,939,634.46 for a first phase of improvements, which will include the installation of pervious paver meandering sidewalks, as well as crosswalks additions and enhancements and street lighting.
The first phase will be largely funded with a $1,288,440 state appropriation granted to the city last year and $283,412.96 from the U.S. American Rescue Plan Act.
Pine Avenue funding also includes $1,410,000 for a second phase of improvements along the corridors of Magnolia and Spring avenues, which will be funded by a state appropriation for the same amount that was approved this year.
The city will put $367,781.50 into the project using revenues from ad valorem taxes and impact fees, as well as carryover funds.
The remaining $325,000 of the proposed public works expenses for fiscal 2023-24 are for road paving.
Other contributing factors to the $5 million increase in capital expenses are a more than $500,000 increase in stormwater expenses and an extensive $1,877,258.24 capital outlay plan.
The proposed capital outlay plan will include $500,000 for public restroom facilities, $500,000 to extend a multiuse path, $275,000 to fund a study to determine a permanent solution for the Lake La Vista channel and $200,000 for city hall and annex improvements.
It also contains $306,058.24 for shade sails, including $156,486.24 to cover the playground at City Pier Park, $79,660 to expand existing shade sails at the park, as well as $69,912 for the picnic area at the city pier T-end.
While capital expenses are set to skyrocket, operating expenses will increase by $522,733.33 over this year, which makes up the remainder of the $5.5 million difference from this year’s budget.
That increase is fueled primarily by two proposed changes:
- A 6% raise in salaries and wages across the board for city employees, including a 3% base salary raise and a 3% lump sum payment to be provided Oct. 1, as well as an increase in the city’s coverage of employee health care costs, from 85% to 95%;
- A $212,646 increase in cost for contracted law enforcement services from the Manatee County Sheriff’s Office.
There was no public comment.
The city also has proposed a 2.0500 millage rate, resulting in a tax increase for property owners.
The millage rate is the amount per $1,000 of property value used to calculate property taxes. The owner of a property appraised at $500,000 with a 2.05 millage rate will pay $1,025 in property taxes.
While the millage has remained the same in recent years, maintaining it would result in a $627,072 increase in ad valorem revenue, from $3,575,651 this year to $4,202,723 in 2023-24.
That increase is due to a $317,769,722 spike in total taxable property value over last year, up to $2,050,108,891, according to the Manatee County property appraiser.
To avoid a tax increase, the city would need to adopt a 1.7441 rollback rate, which would result in the same ad valorem income as the current year.
Under the rollback rate, the owner of a property appraised at $500,000 would pay $872.05 in property taxes.
The city’s first public hearing on the proposed budget and millage rate will be at 5:01 p.m. Thursday Sept. 7, at city hall, 10005 Gulf Drive.
The city will hold a second hearing to discuss and potentially adopt a budget and millage rate at 5:01 p.m. Thursday, Sept. 21, also at city hall.
Directions to attend via Zoom can be found on the city’s website, cityofannamaria.com.
Into the numbers…
2022-23 end-of-year estimates
Total taxable property value: $1,732,339,169
Ad valorem revenue: $3,575,651
Total budget: $9,077,842.36
Total operating expenses: $6,071,790.47
Total capital expenses: $3,006,051.89
2023-24 proposed budget
Total taxable property value: $2,050,108,891
Ad valorem revenue: $4,202,723
Total budget: $14,626,014.44
Total operating expenses: $6,594,523.80
Total capital expenses: $8,031,490.64
— Ryan Paice