Utility taxes on the rise in Lake Worth - A City in Crisis?

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You want to talk about a city that is going to sock it to ya? Do you want to talk about a city that will be totally unaffordable to live in especially if the voters vote in this bond? Do you want to talk about a city that simply can't afford itself? When does a municipality admit that it is sinking or has already sunk?

“For at least the last 20 years major U.S. cities have been playgrounds for left-wing experiments—high taxes on the rich; sanctuaries for illegal immigrants; super-minimum wage rules; strict gun-control laws; regulations and paperwork that makes it onerous o open a business or develop on your own property; crony capitalism with contracts going to political donors and friends; and failing schools ruled by teacher unions, with little competition or productivity.” Steve Moore, Chief Economist with The Heritage Foundation.

And even though we are not a major city, we have experienced many of the same situations. Property values have fallen to a ridiculous low and our city can't afford itself. So what do they do?  They plan to tax you "every which way but loose." Even if the general obligation bond referendum fails, they will be taxing you to the max. Do you think taxes ever go away?

On The Agenda Tuesday and NO BACK-UP DOCUMENTS for most of it and you don't get to speak!

A. Discuss Fiscal Year 2015 proposed budget - estimated time 2 hours

1) Water, Local, and Regional Sewer Funds
2) Beach Fund
3) Golf Fund
4) Library Trust, Simpkin Trust
5) Code Remediation Fund
6) Building Funds

Are the water or sewer rates going up in FY 2014?

· YES, the water rates are increasing per the recommendations of the rate consultant.

· YES, the local sewer rates are increasing per the recommendations of the rate consultant due to the increasing pass through costs from the ECR wastewater facility.

 · YES, the Regional sewer rates are increasing per the recommendations of the rate consultant due to the increasing pass through costs from the ECR wastewater facility.

 Are the Water/Sewer Budgets going up in FY 2014?

· Water Fund: YES: FY14 $19,207,381 FY15 $22,011,324 ($ 2,803,943 increase-15%) Operating revenues are sufficient for operating expenses, debt service and contribution to general fund of $1 million. The FY 15 budget includes capital projects of $2,230,000, which are paid from reserves, and additional $ 6,151,000 transfer from reserves planned for the LW 2020 project in FY 2015. The increase in Administration expense is offset by a reduction in non-departmental expenses. The budget increase is due to the increased capital outlays in FY 2015, including the transfers to the LW2020 project. Utility rate studies recommend cash reserves of 33% of the operating budget ($5 million), which are maintained in the FY15 budget.

· Local Sewer Fund: YES: FY14 $8,526,912 FY15 $10,508,231 ($1,981,319 increase- 23%) Approx. 45% of this budget is for contracted wastewater transmission/treatment services, Operating revenues are sufficient for operating expenses, debt service and contribution to general fund of $0.2 million. The FY 15 budget includes capital projects of $568,000, which are mostly paid from reserves, and additional $2,094,000 transfer from reserves planned for the LW 2020 project in FY 2015. The increase in Administration expense is offset by a reduction in pumping expenses. The budget increase is due to the increased capital outlays in FY 2015, including the transfers to the LW2020 project.

· Regional Sewer Fund: YES: FY14 $6,430,639 FY15 $6,524,246 ($93,607 increase –1%) The Regional Sewer Fund was adjusted based on the settlement agreement reached with contracted sub-regional customers in FY 2013. A true-up calculation was completed based on audited FY 13 financial reports. The Regional Sewer Fund budget has been adjusted based on the planned 50% increase in the ECR wastewater fees for the capital improvements at the plant. The city treats out of town customers better than its own residents.