Agha Updates $36 Million Village Budget

The Key Biscayne Village Council opens a meeting with the pledge of allegiance, Aug. 27, 2019.(Key News/Tony Winton)

Key Biscayne Village Manager Andrea Agha sent a revised $36 million budget to the Village Council last week, a more detailed draft that includes breakdowns and explanations sought by elected leaders who insisted on a rewrite of the spending plan.

“My goal is to get a clear and concise budget so that we can answer the questions,” said Council Member Brett Moss. He said the document was improved, “But we’re not there yet.”

The Council was set to review the budget Tuesday, but the workshop meeting was canceled because of Hurricane Dorian. Also canceled was a meeting to consider Agha’s request for a new $367,000 software package that Mayor Mike Davey called into question last month. 

Overall, the 2020 budget calls for a tiny tax decrease of 0.8%, continued funding of current community programs and current levels of employee staffing.  

Revenues would increase 4%, with large gains in various fees, shared revenue and fines. 

Some of the new fees include:

• A 14% increase in business tax fees
• A 39% increase in the franchise fee paid by Florida Power & Light
• A 16% increase in rental fees at the Key Biscayne Community Center for special events
• An increase of more than 600% for building code violations, which officials said is based on year-to-date actuals
• A 31% increase in red light camera fines (over 2018)

The budget also shows a $575,056 item called “other revenue” whose source was not immediately apparent. 

Tough Decisions

The plan — for now — sidesteps some contested items such as a near doubling of stormwater fees. Agha is recommending the increase to partially fund $17 million of new pumps and drains. Some resiliency proponents contend the proposal is too timid, while some condominium leaders say the plan overcharges apartment dwellers.

The budget includes a $400,000 expense for utility undergrounding survey work.  The Village is still waiting to learn how the Public Service Commission will implement a new state law allowing utilities to recover power line hardening costs from ratepayers. The funding mechanism for the project, once thought to cost $46 million, has roiled the community. 

Also unknown is the budget impact of potentially large pension contributions for police and fire personnel. The amount of the contribution is guided by a report by the plan’s actuary, but it had not been submitted as of last week. 

The pension matter is being watched closely by public employee unions, which expect to go into bargaining with the Village later this year. Pensions have historically been a tough subject in bargaining in Key Biscayne and elsewhere. 

Vice Mayor Allison McCormick raised the pension funding issue at the Aug. 27 meeting, concerned that Village administration failed to put $2 million into the plan as directed by a 7-0 October vote, suggesting that the administration was thwarting the will of the previous Council.

“To not approve this is setting a precedent,” McCormick said, looking directly at Agha, “that would allow you to overturn any decision the Council makes.” 

Council members approved the $2 million payment on first reading, but the matter will come back Oct. 15, when its fate is less certain. Council Member Ed London said he didn’t want to pay down the plan’s unfunded liabilities, and Council Member Katie Petros said she wanted to see the pension actuary’s report.