Key West budget finagling not finished

BY PRU SOWERS

KONK LIFE STAFF WRITER

The Key West municipal budget numbers aren’t quite adding up yet.

On Sept. 3, the city commission voted to approve on first reading a tentative $186.8 million budget for fiscal year 2019-2020, beginning on Oct. 1. That budget includes a 3.5 percent property tax increase, which translates into a millage rate of 2.1535, or $215 per every $100,000 of taxable assessed value.

But the next night, Sept. 4, commissioners voted down a proposal to begin charging for nighttime parking at the Jackson Square parking lot on Thomas Street behind the county courthouse. Currently, that lot is used for county employee parking during the day and is free to anyone after 6 pm. By charging for nighttime parking in the lot and adjacent 500 block of Thomas Street, budget officials estimated a $244,000 increase in revenue; revenue needed to pay for the 12 new city staff positions and higher salaries for some reclassified job descriptions that are included in the ‘FY 2020 budget.

Now, with that $244,000 in anticipated revenue gone, no one is quite sure where the money to pay for the new staffing levels will come from.

“Absent that revenue, obviously there will be budget adjustments,” said city Manager Jim Scholl. “So, the short answer up front would be no new positions and no reclassification or we eliminate bodies. That’s the only way we can balance the general fund without [those new] revenues.”

Finance Director Mark Finigan is now tasked with finding a way forward and will present the next draft budget at a special meeting Wednesday, Sept. 11, 5 pm at City Hall. A final public hearing on the budget will take place on Oct. 2.

But with the draft budget now approved on first reading, the tax rate cannot be increased, only lowered. So, if the 12 new positions, which include a dedicated inspector for HARC, a part-time administrative assistant to the city commission and a new parking rights of way coordinator, are to remain in the budget, spending cuts elsewhere will have to be found.

“We all want to put in $45,000 for the Fourth of July fireworks. That may have to come out,” said Commissioner Jimmy Weekley, who, along with Commissioner Billy Wardlow, voted against the budget. Wardlow wanted to lower the proposed tax increase. He said he was against hiring new staffers and since property values have increased so much in the past year – which leads to higher taxes based on those new valuations – the city already is expecting more tax revenue.

“If you’ve got that revenue coming in, there’s no need to raise [the tax rate]. We’ve got to keep expenses down and stop hiring people,” Wardlow said.

In other news, incoming city Manager Greg Veliz announced he is promoting Patti McLauchlin, the current city Information Technology Director, into his former position as assistant city manager. McLauchlin has worked for the city for over 30 years.

“I think [Veliz] made the right decision,” said Weekley. “He had told me that one of the areas he wasn’t as strong in was IT. She’s got that strong support. I’m excited for her. And I’m excited for the city.”

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