Letter: Manatee County Budget Meeting Observations

The budget process does not look at reality, i.e., the actual financial results published monthly and annually by the Clerk. The focus is always on the budget, not the income statement and balance sheet upon which we in the real world must base our decisions. Multiple years of $100 million+ surpluses and too high cash reserve balances are not being adequately addressed.

The Capital spending plan of over $150 million for 2023 is wildly unrealistic. Fiscal 2022 YTD (through June) capital spending is $50 million and has averaged about $56 million over the last several years.

The calculation of appropriations compliance with Florida statute is just flat out wrong.

It omits Stabilization and Other Reserves totaling $202.3 million from the calculation. Furthermore, there is nothing in the statute that allows a deduction from the reserve calculation for Capital projects of $152.8 million and Impact Fees of $114.7 million. Therefore the reserve calculation should be based on a reserve total of $601.8 million ( which includes carry-forward reserves of $61.5 million from the contingency calculation) not the $193.1 million shown in the Budget Report. As a result, total reserves of $704.1 million are $ 395.1 million above that allowed by Florida statute – most likely the highest overage of any County in the State of Florida.

The millage cut of .3 is welcome but falls short of the virtual millage increase of .43 caused by a 3% Homestead property valuation increase and .15 increase from environmental lands. It, therefore, increases overall property taxes by $6.4 million. The rollover millage rate (at which property taxes collected are the same as the prior year) is 6.0048 versus 6.2326 millage rate voted at the Wednesday meeting.

There is also no plan forthcoming to deal with rapidly rising Restricted cash reserves which now exceed $500 million. My suggestion is to ask our Manatee County Florida Delegation to promulgate a bill that will allow any restricted reserves above a five-year spending average to be converted into unrestricted reserves which can then be used for any County purpose.

Mike Meehan CFA, MBA