Tampa's fiscal discipline and strategic spending

There is nothing flashy about Mayor Pam Iorio's final budget proposal. It will fund no grand new projects or initiate any novel city program.

But the budget illustrates why Iorio has successfully steered Tampa through these treacherous economic times.

Her commitment to efficiency and fiscal stewardship has enabled the city to meet the public's needs and build for the future even as revenues have plummeted because of reduced property values and legislative restraints.

Iorio's strategy has been straightforward: Cut operating and personnel costs as much as possible by improving productivity, eliminating jobs and privatizing select functions. At the same time, the mayor has continued to invest in services and public safety, which directly affect residents.

This year the mayor's proposed budget would rightly hold the line on taxes. Yet the $787 million budget is slightly higher than last year's $754 million, because more will be spent on capital improvements.

This is smart money management. The spending on replacing water and sewer pipes, building sidewalks, repairing roads and other such projects will improve neighborhoods and commercial areas. Construction costs are low now, so the city can do the necessary work cheaper.

And as Iorio says, "We don't want water pipes blowing up during the Republican National Convention" - which will take place in Tampa in 2012.

Iorio has labored to cut ongoing expenses, reducing staff by more than 650 positions - 13 percent - for the last four years. The city now has 4,416 employees.

Department heads also were instructed to cut 3 percent from their 2009 spending levels.

The mayor will continue a pay freeze for city employees that was adopted last year, although the budget does allow step pay increases for its unionized workers - police, firefighters and "nonprofessional" employees, which include blue-collar workers, clerks and technical staff.

The step increase goes to workers each year until they reach the top salary for their particular pay grade.

Public safety officials loudly protested when the city eliminated the step last year, though Iorio promised it would be restored once the city dealt with last year's $52 million budget shortfall.

Police and firefighters were skeptical, but Iorio has kept her pledge. It will cost about $2.3 million next year.

But the mayor points out that eliminating the step for several years would not only stall deserved advancements but result in a backlog of eligible employees that would create a huge bill for the city once the step pay was restored.

This seems a reasonable move, particularly for police and firefighters. Public safety has been an Iorio priority, and crime is down 56 percent during her tenure.

The union workers are still being asked to make a sacrifice. Like other city employees, they will receive no cost of living increase.

But during a year in which three Tampa police officers were murdered, restoring the step should signal officers that their efforts are not being taken for granted.

Iorio's administration faced a projected $32 million shortfall as it developed the 2011 budget yet still managed to produce a spending plan that invests for the future.

The city will use about $12.5 million in reserves in the budget, but it will retain a robust $88 million for emergencies. Council should recognize this is a sound budget plan.

Iorio, whose term expires in March, will leave Tampa in solid financial shape and with a fiscal discipline that Tampa's next leader would be wise to continue.