The staff reported that “the preliminary FY 2017 budget totals $246,254,510 which reflects a 3.2 percent increase from FY 2016. As a point of comparison, the recently passed State of Florida budget increased 4.8 percent.”

The proposed budget includes an estimated $5.58 million in new revenues and expenses.

Also, the budget, for the second consecutive year, provides relief from the City’s 27% increase in fire service fees for those who live in the unincorporated area. In order to maintain the fee at lower levels, the County Commission reduced the fees for the unincorporated area by 15% for FY16 and FY17. The County Commission approved $1.2 million from the general revenue fund to be used for this reduction. The full rate will become effective October 1, 2017 (FY18) without further action.

NEW REVENUES

Based on the current millage rate of 8.3144 and the preliminary information provided by the Property Appraiser on June 1, 2016, the property tax will raise $3.125 million more than last year.

The Public Service Tax (PST) will raise an additional $2.25 million. This is in part due to the end of a 3 year repayment schedule to the City of Tallahassee of $2.1 million for over payment of the PST to the County from FY 2010 – FY2013.

Sales taxes are anticipated to generate additional revenue of approximately $823,650 and the gas tax revenue is expected to increase by $549,100.

On the negative side of the ledger, the Communications Tax will bring in approximately $316,000 less than last year.

NEW EXPENSES

The Sheriff’s Law Enforcement and Correction budget will receive the largest portion of the new spending with an increase of $2.33 million. The new expenses will pay for four new deputies and four non-sworn positions in the jail. This also includes  increases in salary and benefits (including health insurance).

Staff is recommending increasing the recurring transfer to the County capital program in the amount of $1.0 million. During the recession, the County suspended the transfer of recurring dollars to the capital program. The goal is for the County to reach $4.0 to $5.0 million in recurring funds which will be used for capital expenses.

The next largest category is the $941,00 that will be allocated to Leon County employee salaries and benefits. This category includes raises and increases in healthcare costs.

TR’s next report will identify new priorities adopted by the County Commission and the projects to be funded by the County’s capital budget.

A comparison of the County and City operational spending trends since 2008 are shown in the table below.

[table id=11 /]

Since 2008, Leon County expenditures have increased by $7.4 million or 3.76% while the City of Tallahassee spending has increased by just over $80 million or 17.4%. The table shows that over the last three years Leon County spending has increased by just under $5 million and City spending has increased by approximately $45 million.

A graphical representation of Leon County spending, shown below, indicates that Leon County spending was relatively flat from 2010 through 2013, before increasing in 2014.

A graphical representation of City spending, shown below, indicates that City spending had dramatic increases in 2011 and 2013. In 2011 spending increased approximately $37 million over 2010 levels and in 2013 spending increased approximately $42 million over 2012 levels.

What are the major drivers of City spending during this period? The General Fund, which supports core city services like public safety and parks, increased by approximately $6 million over the period from 2008-2014.

It appears the major drivers of non-fuel spending during this period were the electric utility and sewer funds. Tallahassee Reports has requested additional data from the City to determine the exact dollar amount, but preliminary estimates indicate that these two funds increased by a total of $50 million from 2008-2014.

Tallahassee Reports will publish an update to this report when more data becomes available.