Local News

AP on debt-free track

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Marc Valero | Highlands Today
Published: February 4, 2013

AVON PARK - As many cities face tough economic times, in contrast, Avon Park's financial picture continues to improve with the city on track to be debt-free in three years.

The city is scheduled to be 100-percent debt-free by December 2015, City Manager Julian Deleon said Thursday. He said it was a "big deal" in these economic times, when many organizations are getting more debt just to remain operational.

"Furthermore, we are projecting another large property tax reduction for the 2013-14 budget year," he said.

This strategic objective was achieved by paying off 39 percent of all city debt in 2011, Deleon explained. Currently, the city's only debt is an estimated $1.2 million for a utility bond.

During the past two years, the city has made all major capital purchases in cash and has not incurred any additional debt, he said.

Financial stability and debt management were two of the city council's previously established priorities, along with annexation and growth, a business-friendly atmosphere, lower fees and taxes for residents and businesses and quality-of-life improvements.

Deleon added employee relations to the list.

During the past two years, there have been some tense moments, he said.

"With the removal of 49-plus positions out of 103 jobs and four separate employment regulations and unions, we have encountered some difficulties," Deleon said. "This was to be expected, despite our efforts to provide severance pay and minimize impacts."

At one point, the city's management had to address the employment concerns for four separate bargaining units or employment boards, he noted.

The city has made some progress through standardization, Deleon said. During the past two years they have adopted a personnel policy manual and updated the city's purchasing manual and the city's accounting and finance procedures manual, which were all critical in establishing performance and operating standards.

The council added two more priorities: Code enforcement pro-activeness and more community events sponsored through the community redevelopment agency.

mvalero@highlandstoday.com (863) 386-5826