Top issues to watch in 2014: City budget

Approving a budget and a millage rate by a 3-2 vote in September, the Sarasota City Commission displayed a philosophical divide among its members regarding the fiscal state of the city.

Within the next two months, the City Commission will begin the seven-month budgetary process all over again.

Last year’s process established two camps among the city’s legislative body. Vice Mayor Willie Shaw and Commissioners Suzanne Atwell and Susan Chapman advocated for an approach of cuts and property-tax increases to cover a budget deficit, while working to ramp up the level of city services from the more austere post-recession years.

Mayor Shannon Snyder and Commissioner Paul Caragiulo, on the other hand, felt there was more room to cut from the budget, and they stood strongly opposed to a tax increase.

Caragiulo said he’d like to see a different philosophy from commissioners when they look at the budget. Rather than squabbling about individual items to cut, he said they should put more pressure on staff to make budget reductions.

“Unless you give them less money to play with, they’re only going to cut what they need to cut,” Caragiulo said.

Even among those on opposite ends of the spectrum, there is some agreement on areas to target going forward. Snyder and Chapman, in particular, have been leading the call to tackle the city’s unfunded pension liabilities, although little consensus exists among the commission regarding how to address the issue.

Two looming issues could significantly impact the city’s budget next year. One is based in Tallahassee, as Gov. Rick Scott has targeted a repeal of the state’s communication services tax.

For the city, that would mean a $4 million loss in revenue; the commission identified the preservation of that tax in its legislative priorities this year.

The other, more local issue that could tie up city funds is the ongoing regional effort to help fight homelessness. The city agreed to set aside $500,000 for homelessness efforts late in the budget process in 2013, which matched a county investment. As the process of implementing the recommendations of consultant Robert Marbut continues, the city could be asked to make more contributions.

Following 2013’s budget process, Snyder was cynical about the prospect of events playing out differently this year.

“The only thing you need to do is find three like-minded people on the commission,” Snyder said. “Do I see things changing? No.”

Overview: After narrowly approving a budget and millage rate increase in 2013, the Sarasota City Commission has shown a divide when it comes to managing the city’s finances.

Players: Sarasota City Commission

Timeline: Budget workshops will begin in February, and the budget process will continue through September.

Contact David Conway at [email protected]