Oakland sets tentative budget, 6.5 millage rate

When the town of Oakland sends out its TRIM notices later this month, it will include a tentative millage rate of 6.5 and a tentative budget of $18,774,853 for Fiscal Year 2021-22. The Town Commission approved the numbers at its July 27 meeting.

Oakland’s budget is broken down into two categories. The proposed budget for the General Fund is $6,342,750; the Utility Fund is proposed at $5,098,685; and impact fees are $5,066,234.

This does not include the budget for Oakland Avenue Charter School, which was previously approved.

In a memo to the commission, Town Manager Steve Koontz reported property values increased by 17%.

Several items contributed to an increase in the General Fund budget: an increase of $132,000 in funding per the interlocal agreement with Orange County Fire Rescue, employee salary increases based on performance appraisals of 4% for town staff, 5% for directors and 6% for members of the Oakland Police Department; funding for a part-time event coordinator; increased budget for events to include the enhanced lighting of the town center; and the closeout of the revolving loan for wastewater and the construction loan for the Arts and Heritage Center.

“We do pay a lot of money for fire,” Koontz said. “We could not provide the level of service to this town ourselves; we just could not do it. The deal we made with Orange County for fire services is just awesome. They’re a great partner. … I wouldn’t change that for the world.”

The Utility Fund includes a projected increase in water revenue, increase in wastewater revenue, funding for up to 4% salary increase for staff and a full-time utility billing supervisor position.

The Utility Fund includes funding for three grant projects involving infrastructure.

Town staff and the commission initially came up with a 30-year plan for the septic-to-sewer conversion, but it has taken just 10 years to finish the “spine” of the project, including several lift stations.

“This is (using) no taxpayer dollars from the town at this point,” Mayor Kathy Stark said.

“A vast majority has been through grants and legislative appropriations,” Koontz said.

A portion of the monies from the impact fees fund will be used at the Oakland Police Department. Renovations are being made to the police station to increase work space, and Chief John Peek is looking into adding some cameras and other safety features for officers on the road, as well as license readers.

Transportation is playing a huge role in the next budget, with the rebudgeting and construction of the West Oakland Avenue roundabout.

After the roundabout project is completed, Koontz said, the town will seek public input on what the next transportation projects should be.

The town is doing great, he said; it’s a balancing act between millage and reserves.

“We’ve seen over the course of four or five years with the town — we were at a very low point with the General Fund, and we’ve been slowly building that up,” Koontz said. “It really is a balancing act. In September, it’s very likely we’re going to come in and reduce the millage. We have done that two out of three years.

“If you lower the millage rate, you have to make sure you have the reserves,” Koontz said.

He has recommended salary increases because the town is between 10% and 30% below what other municipalities pay their directors, he said.

Millage rates are the tax rates used to calculate local property taxes. The rate represents the amount per every $1,000 of a property's assessed value. The millage rate is multiplied by the total taxable value of the property to get the property taxes.

Municipalities can lower their millage rate after setting the rate, but they cannot raise it. Town staff is evaluating a reduction of the millage rate, which can be made at the first budget public hearing.

The town has scheduled public hearings on the budget for 6:30 p.m. Monday, Sept. 13, and Tuesday, Sept. 28.

MASKS OPTIONAL

Commissioners approved the consent agenda, which included a decision on the wearing of masks at the charter school. OACS will follow guidelines that are in place regarding masks in school — keeping them optional, for now — and Principal Pam Dwyer will continue to monitor the Centers for Disease Control & Prevention recommendations.