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The Manager’s question: How much of the Village budget for the current fiscal year is from property taxes?
Saunder’s answer – 20% of the $93 million budget.
It might seem reassuring for taxpayers to know they had to pay just 20% of the total budget. But are they distressed that a Village of 7000 residents has a budget of $93 million?
Yes, the total dollar amount in the budget summary is $92,592,300, approved last September with only a handful of residents present for the vote. Click here for the one-page budget summary.
The $93 million represents the total funds the Village has available for the year. Not all of the $93 million are funds the taxpayers are responsible for.
Included in the $93 million:
…$23 million in Fund Balance/Reserves - we hope don’t need to be spent
…$1.6 million in interest earned mostly from funds in reserve
…$1.7 million income from the marina, a self-supporting enterprise fund
…$15.8 million from the wastewater self-supporting enterprise fund
…$2.1million for the building department funded by building permit fees.
…$9.3 million for canal restoration funded via grants.
…Numerous other projects approved while funded from state, federal and TDC grants.
The General Fund: The basic government services - these are the onesfunded by our property taxes. Current year was budgeted at $25 million of the $93 million total….$25 million for the main operating account that keeps our basic government running. It covers Administration, Finance, Fire and Rescue, Law Enforcement, Legal Services, Public Works, Parks and Rec.
$18 million of the $25 million for general government services will come from property taxes. So, 72% of the cost to run the Village government comes from our property taxes. The Village Manager’s 20% figure was a bit misleading.
The Manager could have asked a better question: How much have the property taxes paid by Islamorada property owners increased in the last 5 years?
The answer: Village property taxes have increased from $11.5 million to the current $18.3 million… up 58% in 5 years.
Manager Saunders tried to suggest the $18 million in property taxes in Islamorada is minor. Just 20% of all the funds available.
But the $18 million to run a town of 7000 residents results in a difficult expense for many of our citizens.
The $18 million in property taxes this year could have been worse. Last September, the Council approved an increase in total property taxes of $2.6 million. To keep it at that level, they decreased the Fund Balances/Reserves by $5.8 million - otherwise the increase in property tax would have been significantly more.
And to assure the reduction in fund reserves didn’t get us into trouble, council approved a $20 million line of credit for emergencies last fall.
We hope Saunders will again appoint a Budget Task Force to find ways to improve the process. Let’s work to improve the costs for our residents most at risk - those whose income is at the lower end in our “wealthy village.” For those who rent and may be at the mercy of landlords trying to make ends meet.
We believe Village Manager Saunders has demonstrated he can find ways to reduce costs. Now with a year under his belt – we expect major improvements this budget season.
And we hope all Islamorada taxpayers watch the process with us.
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