Budgets, millage, and rate increases

It is Budget time once again. For us, we all work under a budget of some kind, whether it is structured and you keep your expenses and revenue on a spreadsheet or you simply know what you earn and what you are obligated to spend during the month. We all know that much of our income is down due to the loss of jobs, salary raises very small if any, falling interest rates and stock going south. We also know that prices are going up for every consumer good that we buy and Lake Worth is no exception.

Here in the City of Lake Worth, we will be working with revenue from falling property values of nearly 24% as costs continue to rise. Salaries were increased this year across the board by 5%. The Finance Department, along with other departments, has struggled to come forward with a budget that makes sense to all. But unlike you and me who must come up with a solution to run our households by cutting expenses when our incomes are down, the City of Lake Worth has one huge gigantic pocketbook to draw its funds—you and me. Unions continue to eat up the fat as does overall spending.

On Thursday, July 23 at 5:30, there is a special meeting wherein Mark Bates will be presenting the following:

• Increased fee for waste removal of 4% for residential. Commercial rate unknown but higher.

• Increased fee for Stormwater of 3%

• A millage increase of either .9274 or 1.9274

I am rather sure that this will be presented to the Commission as a lower millage than last year. The truth of the matter is, the taxpayers of Lake Worth will be paying much more money to the City of Lake Worth for EVERYTHING!

Last year we paid 7.65 mils plus .2328 for debt service or a total of 7.8828 mils. This included Fire Rescue services. Later, Fire Rescue was shuffled off to the County. One of the main reasons for the urgency of outsourcing it was to eliminate that part of the millage rate of 2.95. That would now appear on our tax bill instead and free up more millage for the City giving it a cushion because it only can tax to 10 mils under law. We, of course, were hoping that the City would take the fire rescue portion of it right off the top this year. They didn't. We knew they wouldn't.

The proposal for this year in Mr. Bates' back-up is 5.9990 with .3041 for debt service or a total of 6.3031 total millage. Fire Rescue is now up to 3.5062 for 2009/10. If you just take the difference of what we paid last year that included fire and what is proposed for this year that does not include fire, the difference is -1.58 mils. Now add back in fire rescue of 3.5062 and we are at a whopping 1.92 mils more than last year. It was imperative to move Fire Rescue to the County just to operate this City and maintain a comfort level. The total amount we will be paying is therefore 9.8102 including debt service.

Yesterday I received a spreadsheet with a different proposed budget that indicted a millage of 4.999. Adding back in Fire Rescue of 3.5062 and debt service of .3041 you get a total of 8.8102. So, subtract last year's total of 7.8828 from 8.8102 for a total increase of .9274 or almost 1 mil.

Now, potable water is up. Irrigation water is up starting August 1. Recreation fees are up. We payer higher prices for our electric than our neighbors with FPL. The County has raised its taxes and we have to pay them too. Last night the Commission raised public information fees, a basic duty of a government under the law but they want to squeeze all those who request anything. Put the information up on the web site then. All fees are up. There is NO break from this City.

I had requested a copy of the proposed Budget that will be discussed at 9:00am on Thursday, July 23rd and have been told three times now that it does not exist. As of 9:35 this morning, there is no budget prepared for public information. No one will be able to study the Budget and how it applies to the new millage rate proposed by Finance.

This is a special meeting so the city staff is looking for a vote of acceptance. Sure hope that the Commission got a copy of the proposed Budget and has time to digest it all. Right.