Wilton Manors Budget Crisis Likely to Last Several Years

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After years of having something of a surplus in the budget, times have changed.

Wilton Manors 2024-25 budget will see a 10% increase in the property tax rate along with cuts to staff, services, and capital improvements. The budget pain is likely to last several years.

Numerous residents, and some commissioners, have noted that neighboring cities like Oakland Park and Fort Lauderdale seem to be thriving, or at least holding their own. So the question is: how did Wilton Manors fall behind? There are no easy answers, or a single one.

A series of decisions made years ago, and today’s circumstances, combine to create this dilemma.

Even a relatively small city like Wilton Manors (2 square miles with a population of 12,000) has a lot of moving parts, funded by a roughly $53 million budget.

Delayed Development

Development means dollars. Nearly all land in Wilton Manors is occupied, which means opportunities to increase property tax revenue are limited. Vocal neighborhood associations and citizens have fought development proposals for years.

Many were, and still are, afraid that “building up” will change the character of the city. Some worry it will lose its predominant LGBTQ vibe, while others fear a series of mid-rises will destroy the openness and make the city more like Fort Lauderdale.

It wasn’t until 2021 that the city started rewriting city code and zoning to allow taller residential businesses. This year, three major projects have been approved, but none are close to breaking ground. At a recent meeting, one person noted that none of them are even close to clearing Broward County approval.

At this point, the city will be lucky to recognize any real tax revenue before 2027. And while all these will be high-end apartments that won’t be homesteaded, they won’t be a limitless ATM for the city.

Rising Costs

Like its citizens, Wilton Manors has several costs that can’t be avoided. Insurance premiums, including health, liability, and wind, rise just as fast for the city as they do for residents.

Fifteen to 20% annual hikes are not uncommon, and there’s no reason to believe they will go down.

Roofs must be replaced, lighting must be maintained, and regular wear and tear to facilities must be accounted for.

One example came last week when there was a sewer line break. Repairs are expected to be about $50,000. The new budget will have little wiggle room to deal with these contingencies.

Homestead Exemptions

Property values have gone up around 8% over the past year, but that doesn’t mean tax revenue has risen by that amount. Homesteaded properties’ assessed (taxable) value can only go up 3%.

November’s ballot has a proposed amendment to increase homestead exemptions and, if passed, will put additional downward pressure on revenue in the 2025-26 budget.

Paying People

The city doesn’t run itself. It takes people to work with residents, businesses, and other municipalities. This budget calls for about an 11% cut in personnel. Remaining employees will get smaller COLAs (Cost of Living Allowances). Some advocate cutting their raises in half from last year.

That would bring a modicum of short-term relief but could lead to a staffing shortage like the one recently seen in the police department. WMPD just renegotiated salaries to keep officers from leaving for higher paying jobs.

If city workers, from inside City Hall to parks employees to facility workers, start leaving it would create not just a struggle to provide services but also become a “brain drain,” because they take their knowledge, contacts, and experience with them.

The final vote to adopt next year’s budget is expected to take place Sept. 24.

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Wilton Manors Setting Financial Limits

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