The city of Tallahassee is projecting a multi-million-dollar shortfall in funding next year. Staff anticipates a $3.8-million-dollar deficit in the general fund. The two largest expenses for the General Fund are the Tallahassee Police Department and Parks and Recreation. Watch the video to see the shortfall’s main driver and what’s in the works to fill the gap.
BROADCAST TRANSCRIPT:
The city of Tallahassee is projecting a multi-million-dollar shortfall in funding next year.
This is because the amount of tax dollars coming in and the expenses coming out aren’t currently
balanced.
The city of Tallahassee does check-ins every few months to see if theyre still within the budget outlined the previous year.
And right nowtheyre not.
“This is where we start every year at a deficit,”
Dianne Williams-Cox, Tallahassee City Commissioner said.
Staff anticipates a $3.8 million dollar deficit in the general fund.
The mayor, commissioners, city staff, and the city manager sat down Wednesday to talk about how to avoid the multi-million-dollar shortfall.
It got heated at times.
“I’ve never seen any desire to have any meaningful budget conversations at this table,” Jeremy Matlow, a Tallahassee Commissioner said.
Tallahassee Mayor John Dailey disagreed.
“Commissioner Matlow you have been with us for six years,” Dailey said. “But clearly truly do not understand the budgetary process and how we go through this to form a budget and that is on clear display today.”
The Citys current General Fund Budget is $201.45 million.
The money goes towards multiple things like public safety, parks and recreation, public works, and community resilience. According to the city staff the fund is operating within existing resources.
The general fund’s revenue sources include Ad Valorem Property Tax, water, gas, and electric taxes, state revenue sharing, service charges, and utility transfers.
The two largest expenses for the General Fund are the Tallahassee Police Department and Parks and Recreation.
TPD taking the biggest share.
Last year the city invested millions more dollars into TPD.
City data show the personnel budget for TPD went from $107.1 million to $115.6 million.
That’s an over $8 million increase.
“We made a conscious decision to increase the millage rate to pay for those things that Robert outlined,” Curtis Richardson, Tallahassee Mayor Pro-Tem said in response to questions about raising taxes previously to increase TPD operations. “Police officer salaries, hiring additional police officers and technology.”
In a report, staff said,” Based on second-quarter performance, Police expenditures are on track with the budget. A key driver for the Police department’s budget is overtime, and FY24 second quarter results are consistent with prior years. Staff will continue to monitor overtime and personnel expenses as new officers are hired throughout the year.”
City staff said the projected shortfall’s main driver is an increase in health costs, an increase in pension costs, and a transfer of funds to Star Metro to get back to pre-pandemic funding.
This is despite Star Metro ridership being down, not unlike other public transit systems across the United States.
Star Metro has a separate fund under the branch of the city of Tallahassee.
“Even though we have a general fund deficit, there won’t be a change in the millage rate,” Robert Wigen, Tallahassee Director of Resource Management said. “We ask that we balance the budget with salary and health care and pension costs.”
That means no anticipated raises in taxes.
Wigen also warned city commissioners
that efforts by the state legislature could hinder revenue generators in the future.
“Though much of the legislation the City opposed did not pass, a clear trend for the 2024 legislative session was limiting local government’s ability to generate revenue to fund critical services,” city staff said in a report. “Multiple bills were filed to cap general fund transfers from utilities, eliminate or reduce allowable surcharges for water and wastewater customers outside the municipal boundaries, and reduce local government ad valorem revenue.”
The commission voted to move forward with sharing at least one bill with Leon County accepting the new budget update and leaving staff to find out ways to balance the budget.
Its also important to note that just because theres a projected deficit doesnt mean the bills dont get paid.
Like youthe city has access to credit linesbonds are most commonly used.
Thats how the city is paying for things like the bicentennial celebrations, the Southside Transit project other improvements.
That money, due to it being borrowed, eventually must be paid back, and it ultimately comes from the general fund.