County reviews preliminary 2017 budget

Sarasota County department heads presented their proposed budgets to the County Commission last week ahead of a final budget workshop on Aug. 22.

The total budget decreased slightly from $1.09 billion for fiscal year 2016 to $1.08 billion for FY 2017. County Administrator Tom Harmer reported the county is projected to maintain service levels for 2017. 

Millage rates will also likely remain static, although rates will not be set until July 13. If projections are correct, 2017 will be the 18th year the county has either decreased or maintained millage rates despite a decrease in taxable property values since 2008.

The general fund is also likely to increase to $289 million, a 4.3% increase from fiscal year 2016, but still short of pre-recession levels.

“Things are looking better, but we’re still not where we were as far as a revenue standpoint in the general fund from ad valorem,” Assistant County Administrator Steve Botelho told county commissioners.  

Harmer attributes the county’s ability to maintain low millage rates compared to neighboring counties to its economic uncertainty stabilization reserve fund. The fund was set aside to account for the possibility of a recession. According to Harmer, the fund was intended to mitigate a downturn in the tax base, but it was never intended to be a long-term solution.

Preliminary projections show a $6.4 million shortfall in the general fund for 2018 and a $11.6 million shortfall in 2019. However, Botelho is confident the 2018 shortfalls can be managed with one-time funds such as the sale of surplus land.

“We have some confidence that will disappear with the use of one time monies that will come in,” Botelho said at Wednesday's workshop.

Projections for 2018 and 2019 are likely to change with evolving property values, but officials are already examining how to combat potential future budget issues.

“I think it’s the discussion that is most important, that we’re talking about it and continuing to (ensure) that, if there is a projected shortfall, we are working on ways to reduce it,” Botelho said.