By Mary Thurwachter
After two public hearings, the Lantana Town Council adopted a $28.3 million budget with the same tax rate as last year — $3.75 per $1,000 of assessed taxable value.
That compares to the roll-back rate of $3.3321 per $1,000 of assessed value, which would have kept the taxes collected flat except for those from new construction. The adopted rate amounts to a property tax increase of 12.54% because of rising property values, which have gone up about 12% this year.
A resident who owns an average homesteaded house valued last year at $360,000 saw his taxable value increase to $370,800, the maximum 3% increase allowed, which means he will pay about $40 more in town taxes, Finance Director Stephen Kaplan said.
Anticipated property tax revenues are $6,414,754, an increase of $939,313 compared to the previous year’s budget. Property taxes are projected to account for 39.1% of the town’s anticipated general fund revenues in the fiscal year that started Oct. 1, compared to their being 36.6% of revenues in the previous fiscal year.
The town’s new general fund budget, which covers day-to-day operations of town government, is $16.4 million, a 2% increase.
To balance the budget, the town will take $146,134 from its $19 million in general fund reserves, Kaplan said.
Compared to last year, when many residents complained about the tax rate increase from $3.50 to $3.75 per $1,000 of assessed value, few objected this time.
Town Manager Brian Raducci said having a visioning workshop in April helped pinpoint spending priorities and made the budget process run smoothly. Only a handful of residents appeared at the budget and tax rate public hearings on Sept. 11 and 20.
Town employees are set to get a 5% cost-of-living raise and could get merit raises of up to 5% based on their annual evaluations.
Insurance costs (general liability, property, casualty, and workers compensation) increased 20% partly due to increased insured values and payroll costs. “Additionally, we’ve continued to elect increased liability limits to reduce exposure,” Raducci said.
The town’s insurance broker, the Rhodes Insurance Group, negotiated a renewal which included an 8.8% health insurance increase and no increase for dental insurance. “The estimated town cost is $1,549,992, an 8% increase,” Raducci said.
The police pension benefit plan is projected to remain relatively constant, decreasing from 47.67% to 47.32% of covered payroll for 34 active/budgeted employees, 30 who are retired and two who are vested but no longer work for the town. The cost will increase from $1,080,416 to $1,221,397 in the current fiscal year, of which the state is anticipated to provide $153,631 from insurance proceeds.
The general employees’ pension plan includes a 7% contribution from the town and a match of an employee’s contribution up to 2% of salary, for a total of up to 9% per employee paid by the town. The cost for 69 employees is $469,641, an increase of $41,110.
Money to add a few employees is also included. The Police Department will add an assistant chief and the library will add a manager.
The town previously received more than $6.3 million through the American Rescue Plan Act. More than $4.6 million worth of those funds has been committed for various projects — including license plate recognition cameras for the Police Department, and sea wall projects at Bicentennial Park, Sportsman’s Park and the beach — leaving nearly $1.7 million for other projects.
“Due to the nature and timing of how and when projects are considered, designed and ultimately awarded, no additional projects are included in the FY 2023/24 proposed budget at this time,” Raducci said. “Staff will continue to evaluate which projects are eligible to be funded from this source as they must be obligated by Dec. 31, 2024, and expended by Dec. 31, 2026. As eligible projects are identified throughout the coming year, they will be brought forward for Town Council consideration and approval.”
Depending on if and when the use of these funds wins council approval, any related budget amendments will be incorporated and considered in future budget amendments.
The town also got $2.8 million in grants and appropriations. The bulk of the money — $1.2 million each from the federal and state governments — will be used for water main replacement.
Grant money will also go toward improving the stormwater drainage system and a future-needs analysis; an asset inventory and Ocean Avenue vulnerability assessment; and to pay for ADA door openings and parts of the library garden.
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