City Proposes FY19 Balanced Budget

Focus Remains on Maximizing Efficiency and Long-Term Planning

June 06, 2018

At today's City Commission budget workshop, the City of Tallahassee balanced budget for Fiscal Year 2019 (FY19) was presented as proposed by Interim City Manager Reese Goad. The proposed FY19 budget, which totals $890 million, aims to provide the resources necessary to affect positive change in Tallahassee while remaining fiscally responsible. The proposed budget focuses on the Commission's and residents' highest priorities, including public safety, economic development, the expansion of housing options and infrastructure improvements such as roads and sidewalks, all of which culminate into an exceptional quality of life.

"The budget is the most important thing that the City Commission considers each year; it serves as the plan that defines the level of services that we provide our community," Goad said. "As such, my goal in the development of the FY19 budget was to ensure that we did not lose sight of the impact that our City government has on the lives of the residents we serve."

Long-term investment to support efficient service delivery and economic development is a priority for this proposed budget. Tallahassee was recently named in the Top 100 Best Places to Live per Livability.com's 2018 rankings, which cited factors such as our high-ranking educational sector and the many neighborhood and affordable housing options. Tallahasseeans know that this is a great place to live and want it to continue as such for many generations to come, which is why resilient utilities, modern roads and transportation, innovative technology and long-term plans to sustain this infrastructure are key components of the FY19 budget.

The General Fund budget for FY19 is estimated at $157.6 million, and the total FY19 proposed City operating budget is $738.4 million. This is budget invests in public safety, roads, sidewalks, new parks and human services. For FY19, the proposed budget for the general fund includes $58.4 million for the Tallahassee Police Department; $29.2 million for Public Infrastructure, including an additional $6.5 million for road maintenance; $23.7 million for parks and recreation, including the two new parks; and $7 million for human services.

By focusing on the stated priority areas, the community will continue to make strides. Efforts to enhance public safety are paying off; crime is at a five-year low. The greater Tallahassee area has the fastest growing economy per capita in Florida, according to the latest data from the U.S. Department of Commerce, and private development, a driving force strengthening and diversifying our local economy, is thriving in our city, signaling a positive outlook for the next couple of years. Balancing development with neighborhood preservation and the implementation of an Urban Forest Master Plan will continue to be a priority, as will ensuring ample access for all to recreational opportunities.

Currently, the estimated Capital budget for FY19 totals $153.6 million, maintaining sound investment in infrastructure. This request includes a total investment of $19.1 million for public infrastructure projects, $13.2 million for new technology, $11.2 million at the Airport, and $83.4 million in the City's six utilities. To ensure capital projects meet community needs and are fiscally responsible, planning and reviewing is a year-round process as phases of each project are completed.

The investments being made in infrastructure are producing results for the community. Thanks to more proactive, efficient approaches, this year, the City will repair five times more lane miles of road than in 2015, and a total of 15,000 sidewalk trip hazards have been removed since January 2017.

The Ad Valorem tax rate is proposed to remain at 4.1 mills, with a significant portion generated from new developments. New construction assessed value is three times the percentage rate of growth as compared to increased assessed values on existing properties. As such, the revenue generated will benefit police, parks, roads, and human services to support the growing community.

The annual Municipal Cost Comparison (MCC) shows that the City of Tallahassee, when compared to its peers, provides the full range of services at a lower cost to residential and commercial customers than 10 out of 11 cities of similar size and offering similar services within the state of Florida.

"The City of Tallahassee is a robust organization, and Tallahassee is a place City employees are proud to call home," Goad said. "With a focus on the value and quality of the services delivered and the long-term fiscal health of the community, we are committed to providing a high level of customer service in all areas, while also looking at ways to control costs and increase efficiency."

The City is committed to a transparent budget process, and this workshop was part of the City's ongoing budget series for FY18 and planning for FY19. The proposed budget was developed through a multi-stage process that factored in the Municipal Cost Comparisons, City Commission priorities and input, public involvement and the status of the FY18 budget.

The next budget update will be on July 11. Two more updates and public hearings will be held on September 12 and September 26. The final FY19 budget is anticipated to be adopted at the September 26 meeting. FY19 begins October 1.

Information about the City's budget is always available through OpenGov and the City's online budget, both accessible through Talgov.com.