Citizens can review and participate in the survey here.

The City of Tallahassee is holding a budget workshop this week and one of the main questions before the elected officials is how to deal with a $4.5 million general fund deficit.

The message from the Budget Hawks is below:

The City is conducting a series of budget workshops leading up to adoption of the 2017-2018 budget.

The City will receive additional revenue next year from an increase in city property values without raising the millage rate (+$1.4 million). The City will receive reduced revenue because of a decision to abolish the business tax (-$1.04 million) and lower the millage tax in 2016 (-$1 million +/-).

However, the biggest impact on the general fund is the proposed personnel increase – a raise of 3% ($1.8 million), an increase in pension fund costs ($2.5 million), and an increase in health insurance costs ($520,000) for a total increase of $4.9 million to the general fund.

All these factors, according to City budget staff, have created a deficit of $4.5 million in the proposed budget.

At the June 14 budget workshop, City staff will ask for the City Commission’s direction going forward.

Budget Hawks requests your feedback on what direction the Commission should go -reduce spending or raise taxes.

The groups involved in the poll included Florida TaxWatch, the Network of Entrepreneurs and Business Advocates (NEBA), the Budget Hawks and Citizens for Responsible Spending (CRS).

In a press conference held on Monday at the Florida Press Center, two leaders of the groups explained the findings.

“Tallahassee is a great city but to continue growing and providing opportunities for everyone to pursue their dreams, there must be a balance between what the government wants and how much people can afford to pay,” said Dominic M. Calabro, president and CEO of Florida TaxWatch.

“This poll is evidence that Tallahassee residents demand relief and demand to be heard,” said Barney Bishop, president of NEBA and founder of CRS.

The results show that 57% of poll respondents support splitting the $5 million in savings identified by City of Tallahassee staff between providing property tax relief and infrastructure spending. Also, 60% support property tax relief over the elimination of the business tax which was recently requested by the Greater Tallahassee Chamber of Commerce.

On the executive pay raises that hit the news last week, only 17% of respondents felt the raises were deserved.

The results also show the community is less concerned with the pay levels for public safety officials and the 2% raise proposed for city employees. Over 65% of the respondents voiced support for the current salary levels of police officers, firefighters and this year’s proposed 2% raise.

Bishop commented that he had misread the sentiment of the public on the 2% employee raises and encouraged City Commissioners to adopt spending priorities that are responsive to both City employees and the property tax payer.

Other results found that 51% of the respondents believe the City of Tallahassee is on the right track.

Commercial real estate developer and founding Budget Hawk Russell Price said, “Eliminating approximately $2,000,000 in business fees would be a financial shot in the arm for businesses that are still struggling to recover from the national recession.”

Former chamber of commerce chairman and Budget Hawk Brent Pichard added, “We are elated that the chamber has joined the movement for tax relief. The chamber brings tremendous political influence to help convince local government to make Tallahassee a more pro-business city.”

This does not mean the Budget Hawks’ work is done.

“Budget Hawks will continue fighting for a repeal of last year’s 13.5% city property tax hike and for more transparency in the city budget debate. Cutting property taxes will benefit all taxpayers, including young families and the elderly on fixed income. A repeal of the business tax will be a good down payment in the effort to return tax dollars back to taxpayers’ pockets,” former mayor and Budget Hawk Penny Herman promised.

The Budget Hawks and two other groups, Citizens for Responsible Spending, and the Network of Entrepreneurs and Business Advocates held a budget workshop earlier this month and presented an alternative budget to the spending priorities proposed by the City of Tallahassee.

Our report on that workshop can be read here.

TR spent time at both meetings.

Citizens’ Workshop in City Hall

The workshop at City Hall was lead by representatives of the Budget Hawks, Citizens for Responsible Spending (CRS) and the Network of Entrepreneurs and Business Advocates (NEBA). Approximately 110 people were in attendance.

The groups presented their issues with the the City’s budget process and provided independent evidence supporting their concerns about the City’s spending priorities.

And while there was a fair amount of criticism aimed at the City by the presenters and the speakers, at the end of the presentation the groups detailed the “Citizens Budget.”

The “Citizens’ Budget” which was labeled as an alternative to the City of Tallahassee budget, called for putting money back in the pockets of all citizens in the community.

The “Citizens’ Budget” called for refunding $2 million to low income taxpayers, rescinding the 13% percent property tax and allocating $2 million to road improvements.

The group also provided details about where the savings would come from and promised to provide more detail as more information became available.

Walker-Ford Workshop

The City of Tallahassee meeting at Walker-Ford drew about 100 people, of which at least 30 were paid City of Tallahassee staff. There were 19 speakers from various groups seeking funding from the City including, St. Frances Wildlife, the Palmer-Munroe Teen Center, and North Florida Legal Services.

Two members of the Tallahassee Chamber of  Commerce asked the City to repeal the City’s business tax. The business tax puts about $2 million in City coffers each year.

Also, two members of NEBA asked the City to roll back the property tax increase.

The City’s proposal raises close to $5 million in new fees and taxes and does not refund any funds to taxpayers. A detailed review of the FY2017 City budget can be found here.

Commissioner discussion after the speakers and City staff presentation addressed funding the Palmer-Munroe Teen Center ($180,000) and repealing the business tax ($2 million).

Also, Commissioner Ziffer addressed a request from Dr. Ed Holifield who asked the Commission to reduce the rent for the Neighborhood Medical Center since Tallahassee Memorial Hospital gets a property tax break from the City of Tallahassee.

Ziffer indicated he would ask City staff to find the money to implement Holifield’s request.

Next Steps

The City of Tallahassee will hold their next budget meeting on July 13th, 2016. At that meeting City Commissioners will vote on a mileage rate and review new information provided by City staff.

The Citizens’ groups plan on promoting their “Citizens’ Budget” as an alternative to the City’s FY2017 budget. TR was told no future meetings were currently scheduled.

The City Commission Chambers is available because the City Commission decided to roll out the FY2017 budget at the Walker-Ford Community Center located on the southside.

A press release stated a “coalition of citizen groups who are committed to repealing last year’s $5 million property tax increase will hold a “citizens’ budget workshop” this Monday, June 20th at 6 pm until 9 pm at City Commission Chambers.

The groups include the Budget Hawks, Citizens for Responsible Spending (CRS), and the Network of Entrepreneurs and Business Advocates (NEBA).

The release stated the groups will offer an alternative budget, called the “Citizens’ Budget”, and explain how their budget will put more money back into the pockets of the citizens of Tallahassee.

Why hold a workshop?

Penny Herman, a former mayor of Tallahassee and one of the leaders of Budget Hawks said, “We have offered commissioners ideas to save the city money because taxpayers have seen their property tax millage rates raised three times in the last nine years, our ideas have been repeatedly ignored. Last year for the first time in the history of Tallahassee, the millage rate was increased above 3.7 mills. At the same time, we have seen the fire service fee sky rocket up 25% in one year that now cost homeowners $200 per year.”

The prospect of having dueling workshops is bound to add more publicity and controversy to a budget process that has drawn criticism from local media and several local citizens groups since the City proposed a 27% property tax increase last year.

“The groups chose to hold their workshop at the same time as the City’s budget role out to demonstrate the dramatic differences between the two budgets,” said Catherine Baer of Budget Hawks.

The debate intensified after the 3-2 vote on July 8, 2015 set the tentative millage at 4.55 mills, which is a 23% increase.

Mayor Andrew Gillum, City Commissioners Nancy Miller and Curtis Richardson supported the 23% increase, while City Commissioners Scott Maddox and Gil Ziffer opposed the increase.

Since that vote, a group of individuals, calling themselves the Budget Hawks, stepped up their request for information, fired off emails, and met with elected officials.

Business groups like NEBA and the Tallahssee Board of Realtors continued their opposition to any tax increase and offered alternatives to the increase in public hearings.

At the August 19, 2015 City Commission meeting, a 45 minute discussion among City Commissioners revealed some evolving positions on the budget.

So, where do the City Commissioners stand now.

TR spoke to a number of sources to get their impressions on where they think the Commissioners stand on the property tax increase and how  the final vote on the increase will turn out in September.

The consensus is that City Commissioners Richardson and/or Miller hold the deciding votes on how much property taxes will increase. Also, most believe that the grassroots movement is having an impact by providing Commissioners with another source for information about the budget.

Listed below is a synopsis of the Commissioners position based on public statements and opinions from TR sources.

Mayor Andrew Gillum has been a strong supporter of the full 27% increase from the beginning. He argues that the City has structural problem and needs to increase property taxes to ensure stability. He has voiced his confidence in the City Manager and has made an impassioned plea for body cameras for  police officers. He voted with Commissioners Richardson and Miller for the tentative 23% increase on July 8th.

Current Assessment:  Gillum prefers the 27% increase, but will vote for the next highest increase.

Commissioner Scott Maddox has been against the property tax increase from the beginning. He says he has never voted for property tax increase because the “majority of our land is off the tax rolls and an increase in property tax unfairly places the burden on the backs of small businesses and homeowners.”

His position is that “Property tax increases should be an absolute last resort.” He has offered ideas on possible reductions in spending at public hearings.

Current Assessment: Maddox will not vote for a property tax increase. The unanswered question is will he try and persuade others to do the same.

Commissioner Gill Ziffer voted with Maddox against the tentative 23% increase on July 8th. His alternative was lower, but not zero. Since that time, Ziffer has acknowledged he would support using one time monies, like the $2 million from the BP settlement, to offset one –time expenditures, which are a significant part of the proposed tax increase.

Current Assessment: Sources tell TR that Ziffer’s leadership will be the deciding factor on if the tax increase is completely erased. Some are suspicious of Maddox’s no property tax pledge, but if Ziffer acknowledges enough new revenues and cuts to hold the line on an any increase, other Commissioners and City staff will take note.

Commissioner Nancy Miller has been a supporter of the increase and voted for the 23% increase. She has argued that the increase is not that much and is required to maintain our quality of life.

As of late, she appears open to spending cuts, however, at the most recent City Commission she said “One thing that has been clear to me is that we have just failed to communicate the need to the people. I have asked the City Manager to do that. We need to make our case better.”

But she also asked staff to consider the BP settlement money and come back “with a lower increase or none at all. “

Current Assessment: No one really knows where she will finally come down. One source called Miller “the real wild card.” Miller is obviously feeling the pressure from business supporters, but she has a history of voting in favor of City staff. She has been willing to meet and listen to different positions on the budget, but her latest comments indicate she thinks this is a public relations problem, not a spending problem.

Commissioner Curtis Richardson is new to the process and supported the 23% increase. However, since then, he has been one of the most engaged Commissioners in terms of meeting with those groups and individuals who opposed the increase.  At the August 19 Commission meeting he said “I looked at a number of the recommendations by the Budget Hawks and thought they were reasonable and should be considered by this Commission.”

Current Assessment: Commissioner Richardson, while new on the Commission, has significant ties to management staff. Sources believe that the Commissioner will listen to new ideas and understands the significance of the increase, but are not sure where he will come down.  Sources note that Richardson is up for election next year and this may play some part in his approach to making a decision.