Manager Changes Course with Revised $35.9 Million Budget

In this file photo, the entrance to the Key Biscayne village manager’s office is seen, June 19, 2019 (Key News/Tony Winton)

A revised $35.9 million budget changes course on some popular Village of Key Biscayne programs and calls for a smaller tax decrease, but many important details of the spending plan were not itemized in a draft document circulated late last week. 


“It’s still a draft,” said Manager Andrea Agha. 


Agha’s first pass at a budget in June was controversial. It sought to decrease property taxes as a consequence of a dip in island property values. As a result, programs ranging from the 4th of July parade to senior citizens’ activities faced the prospect of deep cuts, in addition to little spending on capital projects. 


After a tense meeting, the council signaled a different path, with a 4-3 majority choosing to maintain taxes at close to current levels in a nonbinding procedural vote, while pledging to look for other cost savings and other revenue. 



Agha’s new draft assumes a less aggressive tax cut of 1%, with property tax collections decreasing $369,000 over the previous fiscal year. 


Spending is up 4% from the previous year’s budget, but direct departmental comparisons are difficult because Agha’s budget transfers a number of budget lines between departments. For example, community programs are proposed to be transferred from the manager’s budget to the council’s budget. There are also a number of accounting changes involving personnel costs.


“I need a much more detailed budget,” said Council Member Ed London, who said he plans to meet with Agha this week to review the backup documentation. “I’d like to look at every line item of every department.” 


Mayor Mike Davey said the new budget format will take more time to review. “I asked the manager for additional information to compare apples to apples,” he said. “This is a work in progress and there is plenty of time for correction,” he said.


Several council members said they needed more time to review the documents before responding or making any comments. 


Some potentially big-ticket items are also awaiting more analysis, Agha said. For example, the Village is waiting to hear from pension experts about recommended funding levels for police and fire personnel. Last year, a consultant recommended moving closer to fully funding the retirement system. 

On the capital side, Agha said her budget doesn’t include debt service for more than $100 million in resiliency and other projects identified by council members. The spending plan calls for just $5.6 million in capital projects for 2020, including $1.5 million for parking at Village Hall and $1.1 million for the long-delayed park at 530 Crandon Boulevard.


“We are assuming that we borrow, and that we structure debt so that payments commence in fiscal ’21,” Agha said. 


The omission of several budget sections leaves much unclear, including future administration of the the Freebee transportation system. The draft shows $674,000 in income to the capital budget, but it does not show details of how the Village would manage or expend the funds. Administration of the ride service is currently managed by the Key Biscayne Community Foundation, but the charity has said it wants to pass that function to the Village as soon as possible. 


Also omitted is how stormwater budgeting will be handled. Agha has said in the past that stormwater fees are too low to adequately maintain the existing system, even as village leaders have said that major capital improvements are needed to protect the island from rising sea levels.


The draft also does not include details of the solid waste fund. 


No explanation was offered for the missing budget sections, but Agha wrote to council members that she would provide a narrative later.  By way of contrast, the previous year’s entire budget, with a written narrative, was submitted in late June by former Manager John C. Gilbert.


The Village Council meets Aug. 27 to review the draft, with additional hearings set in September.