Top issues to watch in 2014: County budget

Sarasota County's improving economic situation in the wake of the recession spurred a debate last year on how to best chart the county's fiscal future, which will continue into 2014.

The Fiscal Year 2014 budget, which went into effect Oct. 1, 2013, rolled back most of the austerity measures implemented to help the county ride out the downturn. The county will fund more development projects as an investment to grow Sarasota County's economy and expand its tax base for the future.

In September, the County Commission approved a $1.1 billion budget for FY 2014 — a 17% increase over the $896 million budget for FY 2013.

The 2014 spending plan pays for 116 new county employees; $4.2 million in pay raises; new services such as the county taking control of right-of-way mowing; and the one-time costs of projects intended to increase the county's appeal as a tourist destination.

Despite the increase in spending, the county millage rate will not increase next year. But, property-tax revenue is still projected to increase by about $6 million, due to a 4.2% increase in property values countywide.

The 2014 budget taps into money set aside in rainy-day reserves such as the economic uncertainty fund to cover an anticipated $46 million revenue shortfall.

“We're not spending wildly,” County Commissioner Joe Barbetta said. “The economic uncertainty fund is being used exactly for what it was intended. If we don't use that money, we might as well give it back to the taxpayers.”

The county also recently reduced its emergency reserve fund from a 90-day reserve to 75 days — freeing up $8 million for one-time economic development projects such as a proposed BMX track that could host elite competitions.

Financial planning workshops in the run up to final approval of the 2014 budget highlighted a split in the commission. At a September workshop, Barbetta pushed to invest in projects that bring high rates of economic return and expand the tax base.

“I'm a conservative, but I'm also a businessman,” Barbetta said. “It's not good business if you're tying up $4 million to $5 million that's just sitting there, only getting 1% to 2% rate of return, when in reality it could be doing a lot more elsewhere.”

County Commissioner Christine Robinson disagreed.

“We can't turn our head to that model in 2016; we can't ignore that red number,” Robinson said in reference to a projected budget deficit for Fiscal Year 2016 based on current spending levels and projected area growth. “Businesses and individuals don't plan on money they're not sure they're going to get, and that's what we're doing.”

“I think we're just fine, but we have to be very cautious,” Commissioner Nora Patterson added. “We can't say yes to everything in the name of economic development.”

Overview: Sarasota County commissioners ditched the austerity measures that carried the county through the recession, approving a $1.1 billion county spending plan for Fiscal Year 2014.

Players: Sarasota County Commission

Timeline: Debates about the FY 2015 budget should begin during the summer, with budget-planning workshops occurring in the fall.

Contact Nolan Peterson at [email protected]