Faced with a one-two punch of declining revenues and spiraling police and fire expenses, Deerfield Beach’s City Manager Mike Mahaney presented a proposed 2010 budget that holds the line on expenses, suggests pioneering revenue sources like red-light cameras and borrows from the city savings account, among other things.
But Mahaney cautioned in his presentation Aug. 4 that the same approach probably won’t be sustainable next year.
“If you add up all the real estate revenues, it produces $34 million in ad valorem taxes,” he said at the outset of his presentation. “Police and fire alone next year will cost the city more than $39 million.”
It will cost even more next year if firefighters hold sway. At a negotiation session July 31, negotiators for the firefighters union presented Assistant City Manager Macon Sammons with a wish list for a new contract that included raises and buyouts of accrued overtime. Mahaney said anticipated declines in property tax revenue, declining gas tax, crashing real estate values, record foreclosures and high unemployment in 2010 promise an even tighter budget – and he predicted the demise of the city-run public-safety sector, probably in 2011.
“I do not think we will be able to sustain public safety expenses as they are,” he said.
In this budget, Mahaney recommended eliminating all raises, saving $810,000; cutting merit increases for one year, saving $370,000; reducing union contracts from three years to one; cutting a $1.7 million from unspecified departmental capital requests.
On the revenue side, he recommended adopting the rollback rate, the tax rate that would raise the same revenue as the year before. For most homeowners, that would mean paying a property tax that is more per $1,000 of assessed value.
But it also would mean paying less tax overall since the value of the property being taxed has declined.
He supports increasing the fire assessment from $99 to $149, producing $3 million in revenue and installing red-light cameras at key intersections to generate $500,000. Even then, revenue falls short and Mahaney recommended taking $8.7 million from the $18 million in the city’s savings account. Next year, he said, privatization of fire and police services may be the only solution.
Robert Wolfe of the Broward County Property Appraiser’s office said that office is in the process of determining the average assessed value for single family homes and condos in the area. The only thing that is certain, until those figures are released, in a few weeks, is that the proposed operating millage rate of 5.4 (5.8 with debt service) is 11.06 percent higher than last year’s 4.2456.
“It’s an increase, but the tax is more difficult to calculate in a down market,” he said. “The tax amount per person varies.”
BUDGET WORKSHOPS AND PUBLIC HEARINGS
-The city has set the following public workshops on the proposed budget and fire assessment fee: Aug. 10, 11, 17 and 24.
-A public hearing is set on the tentative budget and proposed millage rate on Sept. 8.
-A public hearing to adopt a final fire assessment fee is set for Sept. 14.
-A public hearing to adopt a final millage rate and finalize the budget is set for Sept. 15.
Call 954-480-4200.
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