- March 28, 2024
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The city of Ormond Beach is preparing next fiscal year's budget under a rollback rate, meaning the average resident, who has a homestead exemption, will see a decrease in their city taxes in the coming year.
The city's $32.7 million proposed budget was prepared using a rollback rate of 3.9083 mills (meaning about $3.90 will be collected for every $1,000 of taxable property value), which is 4.37% below the current millage rate of 4.087. Ormond Beach's taxable property values have also increased to $3.9 billion, exceeding the peak of $3.7 billion in 2007 prior to the 2008 market crash.
In preparing the budget, Finance Director Kelly McGuire said at the June 23 City Commission workshop that staff looked at both COVID-19 related issues and budget issues unrelated with the global pandemic. Their aim was to address revenue shortfalls created by the coronavirus crisis and identify the impacted sources. These included anticipating a 50% decline in sales tax, revenue sharing and leisure services fee in the last months of the current fiscal year; Next fiscal year could see a decline of 30% in sales tax, revenue sharing and leisure services fees.
What could that look like? McGuire said it will be a loss of $800,000 in sales tax and revenue sharing funds, and $200,000 in leisure services fee.
To offset these impacts, the city moved $3 million from its general fund reserves to help with revenue stabilization. This left a 17.7% of funds in reserves, maintaining the city's 15% benchmark.
"We are in the type of position that most cities are not, fortunately because you have made good decisions throughout the course of many, many years," McGuire said. "We were able to set up and continue to add to the fund balance reserve."
To also help fund operations, the city is planning to move $100,000 from its Facilities Renewal and Replacement fund to the general fund.
The City Commission was also given a brief walkthrough by City Engineer Shawn Finley of the capital improvement program for fiscal years 2020-21 to 2024-25.
Some of the notable projects to be funded in next year's CIP include the sidewalk renovations in the downtown, budgeted at $600,000. This would replace the existing sidewalk borders with either clay brick pavers, a mixed-colored concrete with seashells or standard concrete.
There is also a $500,000 stormwater piping project that will rehabilitate existing storm pipes; about $547,000 to extend Tower Circle East in the airport business park; $129,000 to replace the playground equipment in Central Park off Fleming Avenue; $66,000 for the city's new traffic calming program.
Included in the CIP is also a $2.3 million project to construct a 24-inch raw water main along State Road 40 from Hunters Ridge to Williamson Boulevard. This will be funded through water impact fees.
The city currently only has one water main running from its wellfield.
"It's time to build a second one," Finley said.
Ormond Beach City Commissioner Troy Kent thanked the budget advisory board for their efforts in aiding the city to make wise financial decisions, and said he was happy to be able to go to rollback with the tax rate.
“Ormond Beach’s financial house is in order" Kent said. "We have made very, very smart financial decisions to be able to have a savings account that can handle a global pandemic.”
Mayor Bill Partington said the proposed budget includes all the services residents are accustomed to and zero layoffs in staff. He called it "prudent and responsible fiscal management" to be able to move $3 million from reserve funds to make this happen.
“That hopefully will help us comfortably weather this COVID storm," Partington said.