As your City Commissioner, I want to address concerns about the upcoming tax increase in Wilton Manors.
Our slogan, "Life is just better here," represents our commitment to preserving the community we all cherish. It’s our duty as a commission to ensure the quality of life aligns with the investment we make as residents. From my experience as a longtime business owner, I firmly believe you can’t cut your way to greatness. In fact, smart investment during difficult times is often the greatest catalyst for success. That notwithstanding, I also recognize the need for difficult cuts to balance our ~$25 million general fund budget.
The city has faced significant cost increases, both expected and unexpected. If you've been following OutSFL, you may know that the city recently negotiated a contract with the police union, resulting in an unplanned $800,000 expense to avoid a critical staffing shortage. Rising inflation and cost of living have made it difficult to retain officers, who were increasingly being recruited by Palm Beach County and other municipalities offering higher salaries. Overall, increases faced by the city related to wages, insurance, and benefits totaled $1.6 million.
Several years ago, the commission made the responsible decision to stop transferring up to $1.5 million annually from our utility fund to the general fund. We believe these funds should be dedicated solely to upgrading our aging infrastructure, helping us avoid the crises seen in neighboring communities.
In the past, revenue growth — mainly driven by rising property values — has outpaced costs. While property values continue to rise, our overall, non-ad valorem General Fund revenues will decrease by nearly $700,000. We've seen significant declines in utility taxes (down 11.4%), communication service taxes (down 7%), and the ½ cent local sales tax (down 16.6%).
City staff, my fellow Commissioners, and I have worked hard to maximize our tax dollars this year. I personally proposed several hundred thousand dollars in cuts, many of which were accepted. Thanks to these strategic adjustments, we’ve been able to shoulder significant expense increases and still have a proposed budget that is a $600k decrease in spending over last year.
Looking ahead, we anticipate financial challenges again next year. Although new development projects will eventually expand our tax base, they are still 2-3 years away from being fully online and taxable. We must continue to explore ways to operate more efficiently. I’ll be sharing my ideas in the coming weeks and am eager to meet with any resident who wants to review the budget or share their thoughts.
Keep in mind, Wilton Manors' share of your total tax bill is less than 30%, yet it funds the vital services that keep our city thriving. By adjusting our tax rate, we can maintain the high quality of life that makes Wilton Manors a place where "Life is just better." The average resident will pay $317 more as a result of the proposed budget, but they can continue to expect the same (or better!) quality of life they’ve come to expect from our city.
-Chris Caputo, Wilton Manors City Commissioner
