Broward: More money needed for services

Broward County looks to have $55 million more than last year when officials start putting together a new operating budget, but that doesn’t mean commissioners will be cutting any taxes.

Budget Director Norman Foster said the upcoming budget, which will go into effect Oct. 1, won’t be able to maintain current services without even more money.

And commissioners getting their first glimpse of next year’s budget plan during their annual retreat held at Tree Tops Park in Davie didn’t talk at all about giving some relief to taxpayers.

Instead, commissioners were warned of storm clouds on the horizon, including a November ballot referendum that’s expected to pass and increase the state’s homestead exemption, which will mean about $34 million less a year in property taxes from county homeowners starting a year from now.

The county’s operating budget is $1.26 billion this year.

The projected increase in the new budget is mainly the result of rising property values and increased sales tax revenue, officials said.

Much of the added revenue will be eaten up by higher health care premiums, 2 percent employee raises and increased retirement plan contributions, Foster said.

He also figures the county will need an extra $7 million from its operating budget to pay for transportation costs.

Bus fare revenue are expected to drop $4 million because there have been fewer riders. At the same time, the number of people using paratransit vans that provide door-to-door service for older residents, individuals with disabilities and others with eligible medical conditions is booming. That service, which charges a flat $3.50 for trips that cost the county about $30 each, will require an extra $2.4 million to keep going, officials said.

Then there’s Fort Lauderdale’s Wave streetcar project, which isn’t built and won’t start running until at least 2021. The county, which will operate the new system, will likely need $1.2 million in the new budget to contract with an operator who will keep an eye on the work when construction starts, County Administrator Bertha Henry said.

The company will “monitor the construction as it goes along to make sure there are no shortcuts” taken, Henry said.

County officials are preparing for the expected future increase in the state’s homestead exemption by squirreling away money in reserves. Rather than cut the budget last year, the county put $11 million into reserves. They plan to double that amount this year, placing $22 million in reserves. That way, when they begin preparing a new budget a year from now and the expected $34 million hit comes, they’ll already have reduced the increase of the operating budget enough so that two-thirds of the drop they’re expecting will be covered.

If the homestead exemption passes, that doesn’t mean the county’s property tax collections will drop. If the property values and sales tax revenue continue to do well, the extra exemption will just reduce the increase in taxes.

If the economy sours, Henry is confident the county is in a good position as long as the downturn isn’t as bad as the Great Recession of 2008.

“We’re able to sustain a mild recession, because we do have reserves,” she said.

Commissioners seemed less concerned about the portion of the budget they oversee than what will be requested by the county’s constitutional officers. The county’s budget also includes the budgets of the sheriff, supervisor of elections and property appraiser.

Budget officials said the extra money this year should allow about a 4.6 percent increase in department budgets. The sheriff ’s budget, which accounts for more than half of the county’s operating budget, usually comes in at a higher level.

“I know they’ll be coming in asking for a number far greater than 4.6 percent,” Commissioner Steve Geller said. “The sheriff has been eating a much greater portion of the pie each year.”

The constitutional officer budgets generally arrive in May and June. Commissioners adopt a final budget and set the property tax rate in September.

lbarszewski@SunSentinel .com, 954-356-4556 or Twitter @lbarszewski