City's Budget Begins to Take Shape

During the third and final budget summit, Mayor Bill Foster laid out preliminary budget options with $2.1 million in budget cuts, a $4.6 million and $7.1 million in to close the $13 million budget shortfall for fiscal year 2013. 

While not intended to be a final proposal, council and residents had previously asked Foster at budget summits to present more specific information so more specific responses could be given. 

Foster told residents Wednesday night at the Manhattan Casino that as the federal government and state government have made cuts and "kicked the can down the road," the last line of defense is your city government. 

"There is no more important government in your life than the city of St. Petersburg," Foster said.  

Large portions of the budget cuts are to police ($391K), fire ($144K), parks and rec ($561K) HR ($191K) and libraries ($166K). For a full list of proposed budget cuts view the chart at the end of the article. 

Foster said even with the 4/10 millage increase, because of declining property values, residents would still pay less in property taxes than what residents were before the recession. 

The fire readiness fee has been championed by council member Jim Kennedy who says it is the fairest tax and gets more properties, such as non-profits, on the tax rolls. He said relying solely on a millage increase could be harmful to a city looking to lure new businesses to the area.

"I think it provides for a point of revenue of diversification," Kennedy said. The fee, he said, would not fluctuate during good or bad economic times; it is something the city could always count on. 

With a fire readiness fee, Foster said a property worth $250,000 or less would have a yearly $60 fee. Properties valued from $250,000 - $1 million would have a $73 fee and properties such as the Tyrone Square Mall would have a fee around $1,100, Foster said. 

Like a vast majority of those that spoke were in favor of increasing the millage and city investment while being opposed to cuts in services. 

"The common theme (tonight) was invest," council member Jeff Danner said. "Invest in our youth programs, arts, South St. Pete, transit, summer jobs, main street."

Only three of the 29 speakers voiced opposition to a millage increase

Those results are echoed in findings from the People's Budget Review survey, which is a locally-drive non-partisan group asking city residents what direction the city should take.

According to results from the budget survey, 78 percent of respondents opposed more cuts to facilities and services. More than 61 percent favored increasing the millage compared to 40 percent who wanted a fire readiness fee. 

St. Pete resident and city council candidate David McKalip said no one should trust the findings from the People's Budget Review. He said the idea of a significant budget shortfall is "just a bunch of propaganda."

"Do not listen to the People’s Budget Review," McKalip said. "(They are) biased questions represented by biased people."

City Council should get the Mayor's proposed FY13 budget in early July with the proposed millage rate set by the end of July. Council will consider the proposed package in September.

Proposed General Fund Reductions

• TOTAL REDUCTION - $2,108,287

Foster said he and his staff are not done exploring ways for the city to save money. He said the city is looking at on-site health clinics, department consolidations, pensions and deductibles for city employees. 

"I'm not proposing any new programs," Foster said of the need for increased revenues to maintain services. "What I want to stop is any further detiorations. I don’t want to get into deterioration maintenance."