REDINGTON SHORES – The Redington Shores Board of Commissioners voted unanimously July 8 to raise the millage rate for the upcoming fiscal year from 1.8 to 2.0. The tax hike is expected to generate about $100,000 in additional revenue to help close an anticipated $170,000 revenue shortfall. The remainder will be made up by dipping into the town’s reserve funds, which currently total more than $3 million.
Mayor Bert Adams said the projected amount to be taken from the reserves will drop from $46,000 to $35,000, due to higher revenues than anticipated being received for the communications service tax. “We got more than what we thought we would (from the tax),” Adams said in explaining the budget change.
Difficult financial times are expected to continue for at least the next two years, Commissioner Casey Wojcik said, due in part to the fact that property values are based on the prior year. He suggested that in the future the town should look at using some of its restricted funds for operating expenses, a move that could require a referendum vote. Since a referendum action would require about six months advance planning, Wojcik recommended investigating that option right away. Being able to use the restricted funds “would give us another source of funds other than the taxpayers’ wallet,” he said.
Commissioner Lee Holmes questioned the need to tap into funds that are currently off limits, saying the town’s financial situation is not all that bad. “We did a pretty decent job with the budget this year. Should we even be discussing a referendum at this time?” Holmes asked. Wojcik said a favorable referendum vote would simply allow the use of the funds if they were needed. The topic will be taken up at a future workshop session, Adams said.
