Is the 2024-25 KCB Budget Right?

Plus ça change, plus c'est la même chose.

The gross taxable value of KCB has been certified to be $1,212,561,686.

The City Commission "set forth the appropriations and revenue estimates for the Budget for Fiscal Year 2024 2025 in the amount of $18,406,061."

The City Commission set a tax rate of 2.7600 mills or 2.76 cents for each thousand dollars of taxable assessed property value. They touted this as "less than this year's tax rate" as if it is a bargain.

Let's look at that bargain.

• In 2022-23, KCB raised $2,621,200 from property taxes alone which contributed to General Fund revenues of $3,884,065. Those revenues included $95,000 illegally transferred from the Building Department. They also include license fees, fine revenues, and a small transfer from the Utility Fund. The budget moves $417,363 to the reserve fund.
• In 2024-25, KCB plans to raise $3,246,270 as the property tax contribution toward budgeted General Fund revenues of $4,943,670. The budget plans a smaller $65,000 illegal transfer from the Building Department. The budget also include license fees, fine revenues, and a $60,000 transfer from the Utility Fund. And there is a plan to tap $374,393 from the reserves.

It is well-known that inflation has driven costs up. Grocery bills, home maintenance, and travel have skyrocketed. Recent headlines are "Inflation Cools in August, but Core Prices Remain High." The cumulative rate of inflation since October, 2022, may be 12.1%. KCB has streaked well past that.

Here are some increases for that period from the KCB budget.

• Commission expenses are up 30.5% over 2022-23.
• The newly separate Code Department expenses are up 786% (totaling $225,700) over 2022-23.
• Building Department expenses are up "only" 20% over (totaling $106,731) 2022-23.

The Building Department is a major profit center for the city, bringing in $531,914 in 2023, $823,422 this year, and a budgeted $638,645 next year with $170,895 of that total transferred to the General Fund in violation of Florida statute and KCB ordinance¹.

There are 1,191 housing units in Key Colony Beach. The Building Department will have raised $1,993,981 since 2023 to pay for our revolving door building officials, an assistant no one has ever seen, and a clerk.

As a matter of perspective, there were 1,191 housing units in Key Colony Beach in 2016. The tax rate was 2.2300 mils which raised $1,441,533 in property tax revenue (less than half the revenue in the 2024-25 budget).

The 2016 Building Department handled permits, inspections, and "code enforcement" with one licensed building official, one licensed building inspector, and no assistants or clerks (although they did make use of the office staff "downstairs" as needed).

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¹ Florida Statute §553.80 allows local governments to adopt fees that "shall be used solely for enforcing the Florida Building Code." OTHER GENERAL GOVERNMENTAL ACTIVITIES and any program not directly related to enforcement of the Florida Building Code MAY NOT be paid for with Building department revenues.