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A Budget For Tampa's New Fiscal Reality

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By PAM IORIO

The Tampa Tribune

Published: August 15, 2008

The city of Tampa's budget theme for the 2009 fiscal year is "Commitment to Progress." Despite shrinking property tax revenue and a sluggish economy, we believe that the city should aggressively repair, maintain and improve its infrastructure. It is also important to maintain high levels of public safety and basic core services that the public depends upon.

The budget for fiscal year totals $836 million. This represents a 9.8 percent increase from last year, mainly due to an increase in enterprise and bond funds primarily available for basic improvements. Our Tax Operating Funds, the operational part of city government that includes property taxes, grew by less than 2 percent.

Over the past two years, due to the 2007 legislative session that required a rollback of the millage rate and the 2008 impact of the voter-approved Amendment 1 that generally doubled the size of the homestead exemption, the city of Tampa has seen recurring property tax revenues decrease by approximately $28 million. Economic problems across the state and country, particularly in the real estate market, have caused stress on other revenue sources such as sales taxes. Rapidly increasing gas prices have strained the average person's budget as well as the city's budget.

The issues we face are not peculiar to this fiscal year, but rather, reflect a changing reality for local governments. Our prospects for increased revenue are unlikely, and rising energy costs are part of global market forces and national energy policies that have no quick fixes. And so the city has adopted a long-term strategy to address these challenges. The foundation of this budget and future budgets is based on guiding principles that include: protect those key services that the public depends upon; look for better ways of doing business; continue to make progress - move our city forward in capital improvements and other investments that continue to make life better for our residents; preserve our reserves so that the city remains financially healthy; and strategically shrink the size of city government.

Continued Progress and Capital Investments

This year's budget includes the following investments:

• The Investing in Neighborhoods program will increase 15.5 percent. This program, which provides for street resurfacing, sidewalks, signage and traffic calming, is now funded at $7.45 million, almost three times higher than the fiscal year 2003 level of $2.6 million.

• Over $19 million will go to replace 20,500 feet of deteriorating pipe as part of the 12th Street wastewater force main project.

• The Water Department is embarking on nearly $150 million worth of projects ranging from the expansion of the water pipeline replacement program to providing minimum flows to the lower Hillsborough River.

Reducing the Size of City Government

Over the past two fiscal years we have decreased our workforce by 382 positions. During this same period Tampa's population has continued to grow, while our workforce has decreased by 7.6 percent. Given the outlook for future revenues, we will carry on with strategic cutbacks in areas where we believe the public will be minimally affected.

We have minimized our reductions in filled positions, but where we have eliminated a filled position we have given each employee 90 days notice and have offered assistance with finding other employment.

We are also addressing the rate of pay increases. The firefighters' contract currently under negotiation calls for the elimination of their merit/step increase plan, which has allowed for large increases depending on seniority. We hope that our proposal for a 3 percent cost of living and a 3.5 percent merit increase will be implemented and will set the tone for future negotiations with both the Amalgamated Transit Union (ATU) and Police Benevolent Association (PBA).

Our Efficiency and Effectiveness Task Force, comprised of employees throughout various departments, continues to look at how we can bring about savings.

We have made strategic cuts to Parks and Recreation that will have minimal impact to our citizens.

In many different departments our employees are doing considerably more work in addition to their current duties. And all departments are doing it with fewer employees than they had two years ago. And yet, their commitment to excellence is apparent.

I present a budget that reflects our commitment to continued progress. We know that times are tough. We know that means we have to step up for the public we serve - make cuts that protect their quality of life - make investments that continue to allow Tampa to be one of the best cities in America.

Pam Iorio is mayor of Tampa.

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