Step one of budget process begins

Commissioners examine the city's needs today. The outcome will determine whether the tax rate rises.

By KELLEY BENHAM, Times Staff Writer
© St. Petersburg Times
published March 25, 2003

LARGO -- The city has a long shopping list and only so much cash. It's time to make some decisions.

Today city commissioners will review the list of needs, called the capital improvement plan, line by line. They will decide what to pay for now and what to save for later.

After they whittle it down, the price tag on the bottom line will help determine whether they raise the property tax rate for the first time in 11 years.

"It's the first step" in the budget process and in the tax talks, City Manager Steven Stanton said. "All of the options are before them."

The list covers everything from trucks to sidewalks to park benches. It totals $24.5-million for 2004 and $108.5-million over five years.

It doesn't cover operating expenses such as salaries or insurance premiums. Those will also affect the eventual budget and tax rate, but those are decisions for another day.

It covers five years' worth of projects, and it's updated every year. The list includes computers for police cars at a five-year cost of up to $3.5-million. Expanding the reclaimed water system: $20.5-million. Computer servers and equipment: $1.6-million. Gizmos that make traffic lights turn green for ambulances: $412,000.

Every item already has the support of the city's staff and a proposed funding source.

"It's not a wish list," said Assistant City Manager Henry Schubert. "These are projects we think are deserving of serious consideration."

But the commission still has to make a lot of decisions.

Most big-ticket items come with even heftier maintenance costs. Committing to a big expense now means paying for it year after year. But putting something off may mean it will be even more expensive in the future.

The $20.5-million reclaimed water expansion is expected to cost $4.5-million in 2004. Maintaining it will mean more staff, equipment and supplies, but user fees should cover those costs.

Everyone seems to want to give the police new computers for their cars, but there is not enough money in the city coffers to buy and maintain them. Even with a $1-million federal grant in hand, the city will have to borrow money or pass a special property tax, the city manager told the commission.

Stanton recommended a property tax increase in 2004, and probably another one in 2007. He told commissioners they could delay the tax and see if the economy improves, but that might force a bigger tax hike later. Or they can cut services -- or trim the list.

"That's obviously going to be heavy on their minds, the implication of having to raise taxes," Schubert said.

They will start going through the list item by item today at 4 p.m. at City Hall. They will review the final product April 15.

Then they have to write a budget to pay for these and all other city expenses, and decide whether that means a tax increase.

"If the commission says no, we'll start taking steps to reduce expenses," Stanton said.

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