Surtax project list headed for evaluation

With the future of ad valorem taxes and the flow of federal dollars uncertain, Sarasota County Commissioner and former Sheriff Tom Knight recently sent staff on a summertime mission to review the status of the project list for the voter-approved Surtax IV, identify transportation plan priorities and present its analysis for discussion at the commission’s Aug. 21 budget workshop.

His three-part motion at the end of the July 6 commission meeting, which was approved unanimously, is intended to provide commissioners with the data necessary to, if it chooses, shift priorities toward transportation improvements and possibly away from other initiatives.

“Our citizens have told us that improving our transportation infrastructure is at the top of the priority list, so we're at a point where Surtax IV is something I believe that we should take a look at changing our priorities,” Knight said. “Building more buildings is going to increase our future operational costs. Our maintenance on roads is nothing like continuing operational costs.”

In a memo to his fellow commissioners, Knight pointed out the county’s general fund spending per resident jumped from $665 in 2021 to $982 this fiscal year and taxpayers are expecting more for their money. 

“It is also a fact that we have identified a $1.7 billion deficit in road construction funds,” he wrote in the memo. “Infrastructure and traffic are the top concerns of our residents as demonstrated by our annual citizens’ survey. Our own studies have confirmed that our county's traffic costs our economy a half billion dollars annually, and we rank among the top 100 urban areas in the U.S. for traffic congestion costs per commuter.”

Sarasota County's Surtax IV — a one-cent infrastructure sales tax — was approved by voters in November 2022. The referendum allowed a new stream of funding for improvement projects in areas including transportation from January 2025 through December 2039.

Knight’s colleagues were in general agreement with the concept of reviewing the division of funds, but advised caution when it comes to reallocating priorities.

“I like the idea of an overview,” said Chairman Ron Cutsinger. “Some priorities have changed, and if we're trying to get some additional transportation done, I'm supportive.”

At the same time, though, any reconsideration of priorities should be tempered by the reality that the penny tax, which voters overwhelmingly approved by 77.9% of the vote, came with spending expectations.

“We need to be very faithful to the community that voted for the projects that were on that list, and they may have voted in favor because of that,” Cutsinger said. “I'm not opposed to saying we take a look at it, but I want to be cautious. I absolutely know how much work went into that. I met with some of those groups out in the community and heard their input.”

Deputy County Administrator and Chief Financial Management Officer Steve Botelho said the county annually budgets Surtax revenue at 95% of projected collections, which he said is conservative at that. In recent years, the county has collected between 5-12% above projections. During the last fiscal year, for example, the budgeted $61.7 million in revenues actually came in at $65.9 million, a $4.2 million surplus.

“That's $4.2 million that should go to transportation and nothing else,” Commissioner Teresa Mast said. “That would be a first strike at trying to find funding for additional projects. For me that's the highest priority.”

Surtax IV does require at least 50% spending on transportation and congestion relief. Cutsinger, who has long advocated widening South River Road for his district constituents, quickly, and jokingly, claimed the $4.2 million surtax surplus from last fiscal year for that long-standing project. 

Commissioners do have authority to reprioritize spending. That latitude, though, is tempered by voters’ expectations.

“I want to be cautious about going down a road where we might have a tendency to get hyper granular on a list that has been vetted by an advisory board with due diligence,” said Commissioner Joe Neunder. “People were sold on a promise and expectations that this board would deliver.”

The County Commission is off for the remainder of July. Its next scheduled meeting is a budget session on Aug. 21 and the next regular meetings are Aug. 25 and 26. Those meetings will be the first held at the new administration building at 1 Apex Road, just east of Interstate 75 off Fruitville Road.