Sarasota City Commission Budget Workshop for FY 2024-25 – July 23, 2024

The Sarasota City Commission held a workshop on July 23, 2024, to review the proposed Fiscal Year 2024-2025 budget. The total proposed budget is $305,644,916, a 6.6% increase from the prior year. Discussions covered internal service funds, trust funds, debt service, and the five-year Capital Improvement Plan (CIP) comprising 79 projects totaling approximately $178 million. The meeting was a working session with no formal votes taken.

Discussion Items

• Internal Service Funds: Fleet Services (beginning fund balance $947,857; proposed expenditures $5,689,567), Information Technology ($286,396 beginning balance; 2 new FTE requested – cybersecurity modules, application support administrator, and converting a contractor to FTE), Equipment Replacement ($7,093,248 beginning balance; planned expenditures $1,078,651), and Self-Insurance Funds (combined beginning balance $7,579,192; ending balance projected at $5,390,274). Commissioners questioned the police department’s use of outside fleet services, cybersecurity adequacy, and the declining balance of the General & Fleet Liability fund (ending at $7,489 after a transfer).

• Trust Funds: Other Post-Employment Benefits (OPEB) fund beginning balance $50,028,392; expenditures $7,592,373 – officials noted strong fund management and 40% retiree enrollment in a Medicare Advantage plan. The 401(a) Defined Contribution Plan for general employees (beginning balance $42,976) is a closed plan covering administrative costs; 193 active members remain.

• Debt Service: No new debt issues; existing bonds rated AA1/AA+ (Moody’s/Fitch). Outstanding governmental debt: $89 million (2024) projected to fall to $85 million in 2025. Proprietary debt outstanding: $92 million (2024) to $85.8 million (2025). Commissioner Ahearn-Koch noted the Bobby Jones Golf Course debt outstanding of $16.835 million should not require new borrowing if the clubhouse stays within the original $20 million.

• Tree Violation Fines: Director of Development Services Lucia Panica explained that most tree removal fines go to the General Fund, not the tree replacement fund. Commissioners expressed interest in redirecting a portion to tree replacement. About 10-30 tree violation cases occur annually.

• Five-Year Capital Improvement Plan (CIP): Total 79 projects, $178 million. Funding sources include Penny Sales Tax I-IV, multi-modal impact fees, gas taxes, and tourist development tax. Key discussions:

  • Environmental: Seawall replacements, shoreline stabilization, stormwater projects. Commissioner Battie inquired about Whitaker Bayou cleanup and flood mitigation; $1.2 million in Resilient SRQ funds awarded for pipe upsizing near MLK Park.
  • Transportation Infrastructure: Pineapple Avenue complete street from Ringling to Orange ($1.5 million estimated, construction likely next year). Undergrounding of power lines – multiple commissioners prioritized, noting high cost (~$1 million per mile) and possible focus on vulnerable neighborhoods. St. Armand’s Circle Complete Street project on hold due to high costs (plan/design alone $14 million); $479,000 in BID dollars remain unallocated. 12th Street Complete Street discussed as potential alternate evacuation route. Fruitville Road improvements nearly exhausted ($2,000 remaining).
  • Neighborhoods: Newtown sidewalk/lighting project ($1 million from Penny 4) partially funded; design phase to determine completion cost. Neighborhood lighting improvements – Commissioner Trice suggested incentivizing residents to install lampposts. Affordable housing trust fund line item includes $4 million for property purchases (down payment and due diligence).
  • Parks and Recreation: MLK Park improvements include ADA waterfront access; conceptual designs in progress. Orange Avenue Park and Shenandoah Park remain lower priority but will be addressed as part of master plan. Bobby Jones Clubhouse anticipated at $9 million; Vice Mayor Ahearn-Koch suggested flexibility in scope to free funds for other parks. Bay Park improvements funded by Penny 4 and TIF dollars.
  • General Government: Van Wezel repairs (crash bars, coatings) funded from its capital fund. City Hall Annex renovations planned for completion this fiscal year. Commissioner Trice raised need for a downtown public toilet, referencing the Portland Loo model.

Key Outcomes

• No formal motions or votes were taken; the workshop served as a detailed review for the commission.
• City Manager Brown directed staff to send the commission an electronic copy of the Five-Year Capital Improvement Plan.
• Staff will provide additional information on fund balance utilization, tree fine allocation options, and options for St. Armand’s BID funds.
• Commissioners directed staff to consider undergrounding power lines in conjunction with street projects and to explore public-private partnerships for park funding.
• The meeting adjourned at 12:21 PM, with a special commission meeting scheduled for 2:00 PM.