SEBASTIAN — The Sebastian City Council is prepared to send its $19.65 million budget before the public in two public hearings set for September before approving it.
“2012 is the tightest budget ever,” Sebastian Budget Committee Chair Ed Herlihy told the council during a special budget workshop Monday evening.
He added that there is little room in the city’s general fund for changes or reductions.
The general fund is just shy of $10 million and consists of revenues from property taxes, franchise and utility service fees, state shared revenue, and transfers from other city funds, among other sources.
To balance the general fund’s budget for the upcoming fiscal year, City Manager Al Minner told the Sebastian City Council that the city had to keep three positions vacant in the Public Works Department, remove three positions from management, and not fill three openings due to retirement in the Sebastian Police Department.
The savings by making those three decisions equates to $749,000 – approximately the same amount the general fund is short due to declining property tax revenue, increases to health care costs and other operational increases.
Minner told the council that the loss of employees in those unfilled positions means fewer staff to do the same, if not more, work.
Cutting the Sebastian Police Department down from 38.5 to 35.5 police officers is “making it difficult for the chief,” Minner said, adding that council might want to consider ways to generate more revenue to fill those positions.
Overall, the city has identified $4 million in needs it cannot afford under the budget.
Minner has recommended for now the city keep its property tax rate (millage) the same as it was last year, 3.3041, though it will mean the city will take in fewer dollars due to declining property values.
Herlihy told the City Council that a tax increase next year would be inevitable.
“The big question is – can this continue?” Herlihy said of keeping the tax rate the same when the city has needs that aren’t being met. “We doubt it.”
Under the current budget proposal, Sebastian employees would continue with furloughs, not working the last Friday of the month, which saves the city $255,000. Employees, too, would not receive a Cost Of Living Adjustment of 3 percent, a savings of $180,000.
Minner told the council that the city’s staff is down 25 percent from 2007, when the city employed 153 people. Now, the city has 115, which is down one position from 1998.
The Sebastian City Council will hear and discuss the proposed budget on Sept. 19 and again Sept. 28 both at 5:30 p.m. during public hearings. The council encourages the public to attend and provide input.
