Community Development District 9 residents during a budget review Monday morning questioned the desire to stockpile millions of dollars in reserve.
CDD 9 supervisors gathered at Savannah Center to review the budget for the 2020-21 fiscal year.
Budget Director Barbara Kays offered cautions about the great fears in the economy, including the Coronavirus, unemployment and supply chain disruptions.
However, despite the dark clouds on the horizon, the outlook for CDD 9’s finances appear to be sunny.
Total revenue for the upcoming year is expected to be $3.812 million, a decrease of $127,800 from the previous year. The loss in revenue can be attributed to a conservative estimate of interest income expected in the coming year.
The greatest expenditure in the annual budget is CDD 9’s contribution to the Project Wide Advisory Committee, expected to be $1.66 million, an increase of $19,818 over the previous year. PWAC makes up 41 percent of the CDD 9 budget.
CDD 9 is expected to sock away $1.5 million in reserve next year, an increase of $500,000 over the previous year. CDD 9 will have racked up an impressive $9.7 million in reserves in addition to $6.056 million in working capital. CDD 9 will also hold back an additional $500,000 for road work in villas.
But the rich reserves raised eyebrows of residents attending the budget workshop.
“How much is enough?” asked Dan Warren of the Village of Gilchrist. “My gut says that is a lot.”
Chris Faulhaber agreed that the money might be better off back in residents’ pocket.
“All of the taxpayers could use that money back rather than dumping it into reserve,” he said.
He suggested the board look at a policy specifically on reserves.
However, under a pair of options under consideration by the CDD 9 Board of Supervisors, residents will see a 1 percent reduction of their maintenance assessment fees or they will remain at the same level.
Supervisors are expected to approve a proposed budget at their June 4 meeting.