ISLAMORADA CANDIDATE QUESTION OF THE WEEK – Coronavirus and the budget

Four seats are up for grabs on the Islamorada dais in this year’s election. Current council members are either running for other offices, terming out or electing not to run for re-election. As a result, new faces will be seen come November.  

Each week, the Upper Keys Weekly will pose a question to each candidate in the race on a village issue. Candidates have the opportunity to respond to the question in 100 words or less. This week, the question focuses on the budget and the ongoing coronavirus pandemic. (Answers are as submitted by the candidates.) On Sept. 21, village council members unanimously approved a final spending plan and millage rate.

QUESTION: With the coronavirus pandemic impacting revenues, what specific action would you take to ensure essential services are funded while maintaining a healthy fund balance to deal with unexpected expenses for possible storms?

SEAT 1

PETE BACHELER

Hurricane Irma helped us to understand that there should be a set aside, and our council did just that. The state recommended 25%, but the council felt 35% was a better number for coastal communities. With that budget item, it is far easier to start hurricane clean up and more comfortable to borrow money if we did not have that contingency. Other locations in the Keys did not have that presence of mind and were behind in storm repairs. Islamorada was far ahead.  It takes money to borrow money. Sound financial advice, and it needs to stay.

FRANK LAVIN

As a result of the pandemic, we are seeing sales tax-based revenue reductions. We have a half-cent sales tax accounted for the general fund and a discretionary sales surtax accounted for the capital projects fund. Should we not have sufficient funds in certain funds, for specific purchases or project costs, transfers from the general fund may be needed. We have in our general fund, as of today $3.4 million. FEMA has also reimbursed our village $6 million. We are still owed approximately $1 million, which is why we have a healthy fund balance and to the due diligence of the Finance Director, Maria Bassett, and her team.

SEAT 2

CHERYL MEADS

The village’s account for storm recovery has been replenished by the state and federal governments and we have budgeted for essential services for the coming year. The Governor is well positioned and focused on helping Florida communities when there is a storm. Property values have not decreased and since the current council raises the millage every year, I do not anticipate a shortfall. Further, this budget year’s millage is set and cannot be changed. I do not support tax increases, nor do I expect to have to accommodate for a shortfall that could not otherwise be bridged by trimming fat.

MARK GREGG

Islamorada is in very good financial shape and impacts from the pandemic should be manageable. Islamorada is expected to receive $40,000 from the CARES Act funds to cover virus-related expenses near term, and the increase in the discretionary fund balance from 25% to 40% of expenses is designed to handle additional unexpected expenses. I would rely upon the discretionary fund to cover all pandemic expenses not covered by CARES Act or FEMA assistance. As with Hurricane Irma, we could obtain an emergency line of credit to keep our government running, and equipment purchases and capital projects could be postponed.

SEAT 3

JENNY BELL-THOMSON

As of right now, no essential services have been adversely affected by the pandemic. In fact, despite the loss of some tax revenue, village revenues got a boost due to increased property values. This allowed the current council to pass a new budget yesterday at the rollback rate. The current fund balance is a healthy $15,740.00, which is at 40.22% of expenditures. The recommended unassigned fund balance, based on guidance from the Government Finance Officers Association, is 25–30% of expenditures.  Although there may be some expenditures that will necessitate using fund balance monies (wastewater system issues, for one) clearly village leadership has done an excellent job of maintaining our financial stability post-Irma and during the pandemic.  

BUDDY PINDER

As a result of the COVID-19 pandemic we are having reductions in sales tax-based revenues. To date we have a half-cent sales tax, also a discretionary sales surtax accounted for the capital projects fund. If we don’t have the sufficient funds in certain funds for specific purchases or project costs, we could transfer from the general fund if needed. There is to date $3.4 million in our general fund. The village of Islamorada has also been reimbursed by FEMA $6 million. The village is still owed roughly $1 million. I believe we have a reasonably healthy fund balance. Having worked with Maria Bassett, finance director, and her staff in the past, during the initial Central Wastewater System installation, I observed persistent due diligence from her & all of her staff members. 

SEAT 5

LARRY ZETTWOCH

Maintaining essential services is a must. Fiscal responsibility is a commitment. The current council has budgeted admirably. We were better prepared than many communities for the unexpected costs of Hurricane Irma cleanup and are reasonably protected from COVID-19-related fiscal impact. As a resident, I attended budget meetings/hearings for the current budget year and 2020-2021 budget.  As your council member, with an eye on the future and commitment to the well-being of our community, I’ll use a common-sense approach to continue solid fiscal planning with an emphasis on maintaining a 40% balance in the general fund for economic and weather-related emergencies. 

DAVID WEBB 

The primary source of revenue for the village budget is residential property taxes. Village staff are projecting steady revenue for 2021. The village council has set the millage rate at 3.015, the roll back rate, and is targeting 40% for reserves. As is always the case the assumptions for 2021 may not play out as planned and village leaders must always be prepared to deal with reality. There are discretionary projects in the 2021 budget, pedestrian bridge and the Fills for example, that should be reviewed on the merits alone and could provide additional revenue for essential services if needed.