Atlantic Beach commission shifts $714,000 excess toward retiree COLAs and key capital projects in proposed FY2025 budget

Atlantic Beach’s city manager presented the proposed fiscal 2025 operating budget on Aug. 29 and told the commission the baseline is roughly $60 million and that $714,000 sits above the city’s 50% reserve policy, money the commission must decide how to use.

Mr. Killingsley, the city manager, said the $714,000 is available for one‑time enhancements and described a set of staff recommendations that included a stormwater master plan, a public safety salary increase and capital items such as a dune walkover and lifeguard station work. “We have $714,000 that is above the 50%,” he said, urging commissioners to identify which projects to place in the budget so staff can prepare an amendment for the Sept. 9 first hearing.

Commissioners debated tradeoffs between one‑time capital projects and recurring costs. Several members favored using part of the excess reserves to fund one‑time retiree cost‑of‑living adjustments (COLAs) rather than immediately funding the dune walkover. One commissioner said, “I would like to see the COLA increase with the police officers as well as the COLA increase for the general retirees,” and others echoed support for replacing the walkover with retiree COLAs.

Staff presented costs and options for retiree increases. The Board of Trustees had recommended a recurring 1% COLA for every full year of retirement (staff estimated that option would cost the city on the order of $200,000 for general retirees). Mr. Killingsley said his preferred option was a one‑time COLA equal to 3% for every five full years of retirement (for example, a retiree retired 10 years would receive 6% under that approach), which staff estimated would cost about $81,140 for general retirees and about $50,772 as the city contribution on the police side under the same formula. Staff also explained that a trustees’ recommendation for an annual rolling 1% for police pensions would cost significantly more in the first year (staff estimated about $306,822) and would be recurring.

The commission also discussed the stormwater fund, which staff said has been subsidized by one‑time money in prior years and showed a structural deficit until changes are made. Staff proposed a combination of right‑sizing fund allocations, a $580,000 transfer from general fund reserves and an ordinance to raise the monthly stormwater fee from $8.39 to $10.81 (a 28.8% increase) with future annual adjustments indexed to CPI. Mr. Killingsley said the stormwater fee has not been increased since 2012.

On capital needs, staff highlighted ARPA‑funded and carry‑forward projects (including a Doris Street land purchase the presentation listed at $1,100,000) and several drainage and road projects restricted by previous appropriations to road uses. The Ahern Street dune walkover was estimated at about $130,000; staff noted a coastal partner reimbursement of $60,000 is available but requires the city to appropriate the full cost up front and spend it by June 2025 to capture the reimbursement.

By the end of the workshop commissioners indicated a consensus to include staff’s recommended enhancements (the stormwater master plan, the public safety salary increase and the lifeguard/walkover work), to fund the two retiree COLAs using the excess reserves and to draw the reserves down to 50% for the FY2025 baseline. Mr. Killingsley said he will present an ordinance and an amendment at the Sept. 9 first hearing that will reflect the commission’s direction.

What’s next: an ordinance will be filed and the commission will hold the first public hearing Sept. 9; staff will provide an actuarial analysis for proposed pension changes and the formal ordinance language required by statute prior to final action.