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In a recent series of budget meetings, Commissioner Jason Bearden posed a pivotal query to Chief Financial Officer Sheila McLean: Does Manatee County truly require a billion dollars in reserves?
“We have needs in this county; our residents are sitting in traffic,” Bearden stated. “This situation is alarming, and I intend to advocate for a strategy to free up some of these reserves.”
At the September 10 budget workshop, McLean suggested allocating $995,959,976 for the fiscal year 2026 budget. The final budget approval is set for a second public hearing on September 22.
McLean explained, “We aim to keep at least 20% of the operating funds available to account for catastrophic events or hurricanes. This is a minimal buffer; 20% only covers two months of operational costs.”
Bearden countered that with the surplus in reserves, the annual allocation of 20% (approximately $105 million) to the general fund is becoming unnecessary. He inquired whether other counties maintain such large reserves.
Sarasota County’s 2024 Impact Report reveals its reserves at $268.4 million, with $140 million in the least restrictive general fund.
Commission Chair George Kruse emphasized the restrictions on how reserves can be utilized.
“Much of this money was allocated for specific purposes and not intended for roadway construction,” he noted. “It’s not flexible; you’d need to justify its use to the state, which would likely dismiss your reasoning.”
Kruse described Bearden’s proposal as potentially appealing to voters by advocating for tax cuts, while jeopardizing the county’s future financial stability by depleting reserves.
The reserves are divided into several categories, with only the general fund offering the flexibility to cover operational expenses post-disaster.
Other categories are designated for specific uses, such as libraries and beach erosion.
Mike Meehan, a financial analyst and resident, has long argued that residents face excessive taxation. He reiterated his call for a tax reduction and reserve utilization during the September 10 meeting.
“Commissioner Bearden, you have $790.2 million in reserves available for discretionary use,” Meehan emphasized. “This report from July 31 confirms my claims.”
Meehan contended that Manatee County needs to spend $493 million to adhere to Florida statutes, which cap contingency reserves at 10% of total appropriations and cash balance reserves at 20%.
Kruse responded to Meehan’s assertion, expressing confidence that the Department of Financial Services was aware of the county’s repeated non-compliance with Florida statutes.
Reduced Millage
By the meeting’s conclusion, Bearden secured a $3.7 million shift with a .05 reduction in the tentative millage rate.
Commissioner Bob McCann supported Bearden’s initiative, advocating a tax break for constituents following the denial of a crucial Lorraine Road widening project.
“I had one priority that was overruled; this is about returning money to constituents. I firmly believe in this,” McCann stated.
McCann directed his comments to Commissioner Tal Siddique, who viewed the .05 mill reduction as merely a “token gesture” and was the sole commissioner to oppose the tax cut.
Siddique urged his colleagues to examine the capital improvement plan more bravely, suggesting the elimination of costly projects rather than making insignificant cuts.
A .05 millage decrease translates to a $15 annual savings for homeowners of a $300,000 property, fluctuating with property valuations.
“While it may seem small now,” Bearden remarked, “consider how many times we have cut taxes in the last four years.”
The millage was reduced in three out of the last four years—by .2 mills in 2021, .3 mills in 2022, and .15 mills in 2024. This additional .05 reduction results in total savings of $210 for a $300,000 home.
Key Information
- Commissioner Involved: Jason Bearden
- CFO: Sheila McLean
- Proposed Reserve Budget: $995,959,976 for fiscal year 2026
- Final Budget Hearing Date: September 22
- Current Reserve Amount: Approximately $790.2 million
- Millage Rate Reduction: .05, resulting in $15 savings per $300,000 home
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Article original publish date: 2025-09-13 09:00:00
Article source: www.yourobserver.com
Read the full story at the original source: www.yourobserver.com
