Tax rate remains steady next year
BY MARK J. CRAWFORD
Budget discussions turned to the city of Starke’s $43 million enterprise fund during the commission’s July 15 meeting.
Nearly 60% of this budget for the city’s utility services is made up of infrastructure improvement funding.
The budget presented by General Manager Drew Mullins includes the same assumptions as the general fund, which was discussed at a June workshop. Employees will receive a 3% cost of living adjustment, with performance and competitive pay increases budgeted at another 3%, plus 7% more for liability insurance, 6% more for health insurance and 5% more for retirement. Other costs were increased by 3%.
Examples of infrastructure projects included in the budget are line replacements and extensions, lift stations, pumps, and manhole replacement for the wastewater system; tank maintenance, line extension, pump and line replacements for the water treatment and distribution system; storm hardening, pole change outs, circuit reconfiguration, reclosers, breakers and GPS mapping for the electric system; and new extensions, installations and valve replacements for the gas system.
Infrastructure improvements are funded at nearly $25.3 million in the 2025-26 budget. This is balanced on the revenue side with new grant revenue, which was built on top of more than $16 million in place this year. The system is projected to bring in more than $7.5 million in commercial sales and $5.6 million in residential sales.
The enterprise fund also has nearly $4.37 million in reserve funding, which is down from $6.17 million this year. Finance Director James Hughes said they are keeping an eye on this, and Mullins confirmed they are cognizant not to take on too many projects at once.
Other major costs in the enterprise fund include $300,000 in capital outlay for a dump truck and a bucket truck, $656,974 in debt payments, $342,668 in natural gas purchases, $5.4 million for power purchases, more than $1 million for outside consulting services, and $3.46 million for salaries and benefits.
During discussion with the commission, Mullins emphasized the importance of planning for future expenses. His examples included a replacement water well, estimated at $1 million, and step-down transformer replacement, estimated at $500,000 each. Another was moving city operations to the former Southside Elementary campus. Mullins said the electric work alone would be $300,000. These needs are down the road. The transformers are halfway through their expected 40-year life cycle. The property transfer with the school district won’t take place until the new school is funded. But Mullins said the city needs to be saving for these and other projects now.
The transportation trust fund is also balanced at $1.65 million. It contains more than $1.3 million in reserves for future street projects, with the remainder budgeted for salaries and benefits, capital outlay, materials and supplies, maintenance and insurance.
The preliminary budget was based on this year’s property tax rate, 4.3879 mills, and that it the rate the commission approved for TRIM notices, which are mailed to property owners in August. The amount is expected to generate $1.33 million in revenue next year, which is $75,658 more than the current year.
Total taxable property value in the city of Starke has risen to more than $303 million.
The city has moved its September meetings to Sept. 9 and 23 at 5:01 p.m. to accommodate the public budget hearings during which the 2025-26 budget will be adopted.
In other business:
—a video will be shot in Starke July 28 and 29 as part of a project to promote the city. “We take it for granted living here every day,” Mullins said of the city. “We all know it is beautiful. But to an outsider, these type videos, it does wonders for, economic development, people coming to town, just showcasing what we’ve got.”
—Mullins is working with the Sandcastle Pines developers on remaining issues, including the need to fence the retention pond. Commissioner Janice Mortimer said residents have reported water in their homes from recent rains. Mayor Andy Redding said residents have requested speed bumps on North Westmoreland approaching the new housing development.
