Midyear county budget report: Revenue up, expenses down from projections

Revenues are exceeding projections and expenditures are generally behind expected at the midpoint of fiscal year 2023, Sarasota County commissioners learned during a budget workshop last week.

Commissioners received progress reports from a number of departments plus a presentation from economist Shawn Snaith, who said the nation’s economy is on the brink — if not already in — a mild, self-inflicted recession that he said should remain mild barring unforeseen circumstances.

“Everything we've gone through over the past three years really is rooted in our policy response to COVID-19,” Snaith said. “We shut down the economy. We plunged into the worst recession since the Great Depression. Two weeks to flatten the curve became two months largely to bulldoze the economy, and when the decision to open back up for the most part happened the economy roared back to life.”

The Federal Reserve, Snaith said, has managed to get a handle on inflation, adding that he expects the economy to contract slightly while the Fed holds the line on interest rates.

The recessionary conditions have yet to show up in the country’s bottom line as revenues not including property taxes have exceeded projections through the first six months of the current fiscal year.

Compared to budget, at the midpoint of fiscal year 2023, major revenues beyond ad valorem taxes are running 27.9% above, utilities revenues 15% above and general fund major revenues 19.3% above. This compares to overall expenditures running at 39% below and general fund expenditures 42% below budget.

Major revenue sources include the one-cent infrastructure surtax at $29.35 million collected, or 30.1% over midyear projections; gas taxes at $9.54 million, or 6.9% above budget; and tourist development tax revenue of $20.18 million or 65.3% above budget.

Delivery of the midyear financial report is a preliminary step In setting the next fiscal year’s budget. Several workshops remain until the budget is adopted once the property tax assessor sets the preliminary property values for the next fiscal year. On June 20-21 and 23 budget workshops will include the presentation of County Administrator Jonathan Lewis’ recommended budget, constitutional officer requests and commissioner input. 

Key dates that follow include:

• July 1: Final property values set.
• July 11: Set tentative not‐to‐exceed millage rates.
• Aug. 25: Budget workshop (if needed).
• Sept. 11: Public hearing.
• Sept. 26: Public hearing and budget adoption.

For the current fiscal year, commissioners set the countywide millage rate at 3.4561, a slight decrease of 0.0098 mill from fiscal 2022. Lewis did not indicate his recommended millage for fiscal 2024.