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Interim manager: Melbourne Beach has strong reserves, urges setting rainy-day policy and funding CIP
Summary
Interim Town Manager Lisa Fraser told commissioners the town holds roughly $6 million in unassigned funds and recommended setting a formal rainy-day reserve, investing in staff pay and using remaining reserves to begin a capital improvement plan while pursuing alternative revenues such as stormwater and fire assessments.
Interim Town Manager Lisa Fraser told the Melbourne Beach Town Commission on Jan. 9 that the town is in strong fiscal position but needs policy decisions now to guide next year—s budget.
"We have over $6,000,000 in unencumbered funds," Fraser said during a budget overview, and recommended setting aside a multi-month rainy-day reserve aligned with Government Finance Officers Association and ICMA guidance. She outlined a calendar in which departmental requests begin in March, draft budgets are presented by July and public hearings are typically held in September.
Fraser said the town—s operating budget is about $5.3 million and that roughly 60% of revenues come from property taxes, a share she said increases the town—s vulnerability if state legislation reduces property-tax revenue. She urged the commission to consider alternative funding mechanisms, including a stormwater assessment and a special fire assessment, and to start the assessment and outreach work early to meet property-appraiser deadlines.
On debt, Fraser reported total town debt of about $515,000, noting the stormwater bond will be paid off this year and municipal bond payments continue through 2029. She recommended separating operating accounts from the capital improvement program (CIP) and using a portion of reserves to seed a multi-year CIP so projects can be self-funded in part rather than deferred.
The commission asked staff to prepare options for reserve accounts that earn higher interest, including rules on minimum balances and transfer limits. Finance staff said they will research high-yield and SBA Prime account rules and return with recommendations at the next regular meeting.
Why it matters: Commissioners face calendar and legislative constraints that affect whether a proposed assessment can appear on the next tax roll. Establishing a reserve policy, prioritizing capital projects and deciding on whether to pursue local assessments will affect how the town funds public safety, stormwater and infrastructure over the next budget cycle.
Next steps: Staff will present specific account options for moving reserves into higher-yield instruments, begin outreach to consultants for assessment timing and bring a draft budget and proposed millage timeline to the commission in July.
