Two Manatee County commissioners want to unlock more than $30 million sitting in reserve accounts and put it toward fixing roads, a move that could benefit neighborhoods like The River Club, where the board voted in April to expedite resurfacing.
At the July 30 budget session, Commissioners George Kruse and Tal Siddique challenged the county's 20% reserve policy, adopted in 2010, arguing that tens of millions earmarked for parks and transportation should be spent now rather than held for hypothetical emergencies. The board voted to keep the tentative property tax rate at 6.0326 mills and directed interim Chief Financial Officer Claudia Campos to identify which reserves are discretionary.
If the fiscal year 2027 budget passes as proposed, total county reserves will hit $1.1 billion.
Kruse Says Pothole Repairs Are an 'Emergency'
Kruse zeroed in on $4.8 million reserved for parks and $25.6 million reserved for transportation. Park reserves, he argued, are accumulated until a project is fully funded, not held for emergencies. And transportation money is needed immediately.
"(Resurfacing roads) is one of the core functions of government," Kruse said at the July 30 meeting. "The minute there's a pothole, it's an emergency because someone's going to hit that and get into an accident."
He pointed to the April vote on The River Club roads as evidence the money should be deployed, not dormant under what he called a policy from 2010.
CFO Warns Lower Reserves Could Affect Credit Rating
Siddique pushed further, asking what would happen if the county dropped reserves to 15%. Campos replied the county's credit rating could dip "slightly" and that 20% allows the county to secure good bond ratings. Siddique countered that without a formal credit-impact analysis, he doesn't see why the reserve accounts are necessary beyond utilities, wastewater and debt service.
Campos confirmed reserve funds could be released for maintenance projects like resurfacing and was directed to return with a breakdown of discretionary versus required reserves before the final budget vote.
Looming Homestead Exemption Vote Adds Revenue Uncertainty
The reserve discussion carries extra weight because of Amendment 3, which would raise Florida's homestead exemption from $50,000 to $150,000 in 2027 and $250,000 in 2028. A Leon County judge ruled the original ballot language misleading, and the state is rewriting it for the November ballot. If voters approve it, Manatee County faces a $62.9 million property tax loss in 2027 and $113.1 million in 2028, according to Your Observer. The general fund alone could lose $44.5 million in year one and $79.9 million in year two.
Kruse noted those losses exceed the current reserve balance.
Tax Rate Frozen as Prior Budget Cuts Carry Into Next Year
The board's vote to hold the tentative millage at 6.0326 means commissioners cannot raise the rate before the budget is finalized but can still lower it. Siddique noted the board already cut $35 million from the current budget, savings that will carry into fiscal year 2027.
Last year, Commissioner Jason Bearden pushed to release reserve funds for road-building and widening projects but lacked board support. This year's push by Kruse and Siddique focuses on maintenance and resurfacing rather than new construction.
The final FY2027 budget and millage rate vote is scheduled for Thursday, Sept. 24, at 5:30 p.m. at the Manatee County Commission meeting. Residents can attend or submit public comment at that hearing.
