A tense multi-hour discussion over the town’s tax rate and budget ultimately led the Loxahatchee Groves Town Council to approve both, but more meetings will discuss potential changes that may follow.
The council narrowly approved keeping its tax rate unchanged at 3.2564 mills, which is 9.52 percent above the rollback rate, at the town’s second budget hearing on Wednesday, Sept. 23. In total, with the proposed tax rate, general fund revenues would increase by about $231,000 for the fiscal year that began Oct. 1.
At the town’s first budget hearing earlier in September, council members had to negotiate with Vice Mayor Manish Sood to gain a supermajority vote to maintain the current tax rate. As a compromise, town staff added a budget line item for public safety for the difference between the rollback rate and the current tax rate. The new budget line item added $432,780 in expenditures for law enforcement, which included a $207,652 difference between the rollback rate and the proposed millage rate, plus $225,128 previously proposed to fund reserves.
Even with the changes to the budget, some members of the council did not hesitate to pick apart certain parts of it. To approve the budget, council members had to first approve the tax rate but were unable to do so without the support of Sood or Councilwoman Anita Kane.
In particular, Sood spent a significant amount of time questioning multiple members of staff about specific items, like salary increases. Acting Town Manager Valerie Oaks reminded the council that after persistent questions over certain items, the staff tried to incorporate all the feedback and proposals of each member.
“This is a proposal,” Oaks said. “It is a proposal, and, as best as possible, it is very difficult to take five individual opinions and try to make everybody happy.”
Mayor Lisa El-Ramey noted that the council could still amend their budget later on to further address specific areas of concern.
“I don’t think anybody up here is under the illusion that this budget is going to stay in the form that we are looking at tonight,” she said. “We can make a motion that changes some of these items within this budget for now, but I am prepared tonight… to ask the council to roll up their sleeves and pull out their calendars and have several workshops.”
Unable to pass a motion to approve the tax rate, El-Ramey requested to receive revised budget numbers. She proposed adjusting the law enforcement expenditure amount and adjusting the general fund reserve calculations; eliminating the community standards director position and allocating those funds to professional services; removing the three percent cost-of-living adjustment but allowing the acting town manager to decide to give merit-based raises to a maximum of 4.5 percent; and approving more than a million dollars in capital improvements, with those projects being determined at a later date. The town’s financial staff worked on adjusting the numbers as the council continued discussions.
Kane and Sood maintained their opposition to the proposed millage rate, which left any progress at an impasse. The rest of the council became frustrated, especially with Sood’s continued requests that kept negotiations deadlocked.
“This is ridiculous, sir — absolutely ridiculous,” Councilman Paul Coleman said. “I’ve held my tongue here all night — I’m done…. If we don’t do this, we’re not in compliance with state statute.”
Eventually, Yvonne Clayborne of financial consultant CRI Advisors returned with updated numbers, which included a reduction in the law enforcement expenditure to $207,652, which eliminated the need to withdraw money from reserves.
This also added $17,475 to reserves, leaving the general fund with approximately $479,000 in excess reserves. The rest of the council was then able to get Kane’s support to pass the tax rate and budget by agreeing to allocate any funds over 25 percent of the town’s two reserve funds to be used for capital improvements.
“I would be in support of the millage rate… if I have a guarantee that all of the excess will be put into the capital project budget,” Kane said.
With this guarantee included in El-Ramey’s amended motion, the council voted to approve the unchanged tax rate, which passed 4-1 with Sood dissenting. They subsequently passed a motion to approve an amended budget 4-1, with Sood again dissenting.
In other business, the council unanimously voted to extend Oaks’ contract as acting town manager by 30 days from its expiration date on Sept. 30.
Oaks has been serving in the role after the council placed Town Manager Francine Ramaglia on paid administrative leave in April. Ramaglia was later terminated with cause and is still in an ongoing dispute over the matter.
The council had planned to make Oaks, who previously served as town clerk, the interim town manager for a year. However, Oaks has reiterated that she does not have any intention of permanently taking the role, but she will continue to provide support as officials look to fill the position.
“It would be unfair to the town for me to continue in a capacity where I feel like I could be way more supportive to the town,” Oaks said.
The council has yet to advertise the position, but they are hoping to discuss the matter at a future strategic planning meeting.
