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August 9, 2012, 9:00 a.m.
Special Call Budget Session

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8:59:24AM >> Good morning.
9:06:39AM Welcome to this special call meeting of the Tampa City
9:06:42AM Council.
9:06:43AM The Chair yields to the Honorable Frank Reddick.
9:06:47AM >>FRANK REDDICK: Thank you, Mr. Chair.
9:06:48AM It's a pleasure to introduce Bishop Michael Lewis senior,
9:06:51AM who was consecrated in 1999 to the office of bishop and
9:06:56AM faith assembly in Christ fellowship.
9:06:59AM He has covered a number of churches around the country.
9:07:03AM He founded Harvest Fellowship Baptist church, now known as
9:07:09AM First Victory Cathedral in March of 1991.

9:07:12AM He's the father of two sons, Michael junior, Jordan Lewis
9:07:16AM and a host of senior pastors.
9:07:20AM He also equipped five full ministries so that many reflect
9:07:25AM the perfect saint for the world of ministry.
9:07:29AM The legacy of fellowship will one day be made of hundreds of
9:07:33AM churches established for God's kingdom on Earth.
9:07:35AM It's a pleasure to introduce Bishop Michael Lewis, who will
9:07:38AM provide us the invocation and the Pledge of Allegiance.
9:07:41AM >> Let us pray.
9:07:46AM Father, we thank you for this opportunity.
9:07:49AM We thank you for this time.
9:07:51AM We pray for our Mayor, pray for our Council.
9:07:57AM We pray for the citizens of this city.
9:07:59AM We pray that you will cover them, protect this place, make
9:08:02AM it a place so that we can live, have peace and enjoy your
9:08:06AM goodness.
9:08:07AM Give our Mayor wisdom and direction.
9:08:10AM Give our Council wisdom and direction to guide this city to
9:08:14AM your glory.
9:08:15AM Amen.
9:08:36AM >> Roll call.
9:08:36AM [Roll Call]
9:08:39AM >>MIKE SUAREZ: Here.
9:08:40AM >>YVONNE CAPIN: Present.

9:08:41AM >>FRANK REDDICK: Here.
9:08:44AM >>LISA MONTELIONE: Here.
9:08:46AM >>HARRY COHEN: Here.
9:08:48AM >>HARRY COHEN: Please note for the record that Chairman
9:08:50AM Miranda is unable to attend today's City Council meeting,
9:08:54AM due to medical reasons.
9:08:57AM He asked that be read into the record.
9:08:59AM So, it is our great pleasure and honor this morning to
9:09:04AM welcome the Mayor of the City of Tampa to present to us and
9:09:07AM to the citizens his budget recommendations for the fiscal
9:09:11AM year 2013.
9:09:13AM Mr. Mayor.
9:09:15AM >>MAYOR: Thank you, Mr. Chairman and members of City
9:09:18AM Council.
9:09:18AM Thank you for the opportunity to be here.
9:09:21AM It's always good to come home for me and having spent eight
9:09:25AM years sitting right there where Councilwoman Montelione is.
9:09:29AM I have very fond memories of this body and I'm appreciative
9:09:32AM of what you do for this city and what you do for this
9:09:36AM administration.
9:09:36AM This has been a challenging budget year, as you can imagine.
9:09:40AM You know, you deal with it every day, just as we do.
9:09:43AM We look into the eyes of our neighbors and we know how they
9:09:46AM have struggled and we know how this recession has say
9:09:50AM effected their lives.

9:09:51AM Sometimes folks are making choices between paying their
9:09:55AM mortgage or paying for immediate since.
9:09:56AM This recession over the last four years has devastated many
9:09:59AM of our friends and neighbors.
9:10:01AM And you will hear in some of the numbers today the drastic
9:10:05AM impact that it has had on our resources.
9:10:09AM But I will tell you that there is light at the end of this
9:10:12AM tunnel.
9:10:12AM I will tell you that we are coming out of this recession.
9:10:15AM I think we are coming out in better shape than most Florida
9:10:18AM cities.
9:10:18AM I actually think Tampa is going to lead Florida out of the
9:10:22AM recession with a different type of economy, an economy not
9:10:25AM dependent on real estate.
9:10:26AM An economy that is diverse, focused on creating the jobs of
9:10:29AM the future.
9:10:30AM And I think what you will see in this document sets the
9:10:34AM groundwork for that.
9:10:35AM As you will see in the title of this, changing Tampa's
9:10:39AM economic DNA, that is exactly what we are attempting to do.
9:10:42AM To create what I hope will be the city of the future,
9:10:46AM creating jocks of the future, so our young kids, after they
9:10:49AM go to college, will return to this community and our best
9:10:52AM and brightest will not be leaving us for Austin, Texas or
9:10:55AM Raleigh Durham or Charlotte, North Carolina.

9:10:59AM That they will stay here and raise their families.
9:11:01AM So this budget has been a major undertaking, if you will.
9:11:07AM As you recall, when all of us came here in 2011, we were
9:11:12AM facing a $30 million deficit.
9:11:14AM Thanks to the hard work of this great staff that's behind
9:11:18AM me, we were able to resolve that.
9:11:20AM We were able to do it without raising property taxes.
9:11:22AM Without laying anybody off.
9:11:24AM And being able to pay the men and women who put Kevlar on
9:11:28AM and bunker gear for us every day, to pay them what they
9:11:32AM deserve.
9:11:32AM To do a job most of us don't have the courage to do and we
9:11:35AM should honor them.
9:11:36AM This year's budget was not much different, candidly.
9:11:40AM This year's budget, we were facing $7 million deficit, after
9:11:44AM fixing last year's deficit.
9:11:46AM Largely due to the decline in property valuations.
9:11:49AM Which you will see later on in this presentation.
9:11:51AM This will all be up on the screen shortly.
9:11:54AM And we have had to make do with less.
9:11:56AM We have had department heads doing far more with far less
9:12:01AM employees.
9:12:01AM With far smaller budgets.
9:12:03AM But they are doing yeomen's work.
9:12:06AM And I can't say enough good things about this staff and what

9:12:09AM they do every day for us and for this community.
9:12:12AM They get up every day.
9:12:13AM And they come to work and their people come to work and our
9:12:18AM employees come to work and they do one heck of a job for us.
9:12:21AM They do it with a lot less money than what we had before.
9:12:24AM But they don't complain.
9:12:25AM They don't complain.
9:12:26AM They just get up and do what the public expects of us and
9:12:30AM expects of them.
9:12:30AM And I couldn't be prouder of them.
9:12:34AM So I want to, I want to thank Sonya Little and Dennis Rogero
9:12:42AM specifically.
9:12:42AM We could not have done this without their experts tell us.
9:12:45AM They have been a guiding hand for all of us as we move
9:12:47AM through these turbulent times.
9:12:49AM I want them to know how much I appreciate what they do.
9:12:52AM I wouldn't be here as knowledgeable as I am, without them.
9:12:55AM And so, thank you for making me sound like I know what the
9:13:02AM heck I'm talking about.
9:13:03AM That's tough to do in my case.
9:13:04AM Let's see what we have got.
9:13:06AM It's been a busy year in spite of all the economic
9:13:09AM challenges.
9:13:09AM It has been a very, very good year.
9:13:11AM In spite of declining revenues, we collectively as a city

9:13:16AM have gotten a lot of things done.
9:13:18AM Some of them I'm going to focus on before we move into the
9:13:20AM budget presentation, as many of you know we came to this
9:13:24AM office wanting to restructure how we do business and make us
9:13:27AM more competitive.
9:13:28AM And you have been a part of that.
9:13:30AM Councilwoman Montelione was intimately involved in that as
9:13:32AM we set about making the City of Tampa far more competitive
9:13:36AM and open for business.
9:13:37AM Because I will tell new no uncertain terms, we can't cut our
9:13:40AM way out of this deficit.
9:13:41AM It's just not going to happen.
9:13:43AM We are already cutting into muscle.
9:13:44AM The only way we get out of this is grow our way out of this
9:13:47AM economy.
9:13:48AM The only way you do that is become far more competitive, to
9:13:51AM get people through the permitting process, to get them out
9:13:54AM there moving dirt and throwing up steel and creating jobs
9:13:57AM and opportunities and creating revenues most importantly.
9:14:00AM So we set about changing the DNA.
9:14:02AM Changing the culture.
9:14:03AM And I think we have done that.
9:14:05AM I think we are now the model for how permitting in a
9:14:08AM regulatory process should work.
9:14:10AM We are being held up as an example certainly our neighbors

9:14:13AM to the west in Hillsborough County, as they have gone
9:14:15AM through a similar process as we did, in terms of
9:14:18AM streamlining and permitting process, making the regulatory
9:14:21AM process more user friendly.
9:14:22AM Making sure we are there to help and not to impede.
9:14:25AM We have introduced new software technology that literally
9:14:28AM will allow you to access your permits from your smart phone.
9:14:31AM We have changed the culture.
9:14:34AM Relocated bodies.
9:14:35AM We changed lines of authority.
9:14:37AM We have moved budgets, instead of having to take your plans
9:14:39AM and walk all over the city to different departments, that
9:14:43AM had oftentimes conflicting advice and conflicting
9:14:46AM recommendations, where no one was in charge, you now walk
9:14:48AM across the hall.
9:14:49AM Time is money to people who are carrying interest on loans.
9:14:54AM And so we have changed the culture of our permitting and
9:14:58AM regulatory process.
9:14:59AM And I couldn't be happier.
9:15:01AM As many of you know, we are in the midst of creating a blue
9:15:04AM print for our downtown that hopefully will be the blueprint
9:15:08AM for the next 25 years, long after all of us are gone.
9:15:11AM We combined an urban land institute panel with the HUD
9:15:15AM grants that we are now calling the envision project.
9:15:20AM We have gotten over 500 suggestions, gone out to

9:15:24AM neighborhoods to engage them.
9:15:25AM I want this to be their plan, not our plans.
9:15:27AM Whether neighbors in Ybor City or Channelside or Tampa
9:15:29AM Heights, or west Hyde Park, we want folks to be engaged.
9:15:35AM We want them to take ownership of their destiny, help create
9:15:40AM the blue print for this community.
9:15:42AM The urban land institute is helping with the west bank
9:15:45AM project.
9:15:46AM When all of us leave office, that river ought to be the
9:15:48AM center of our downtown, no it the western edge.
9:15:50AM I think all of us are committed to doing that.
9:15:53AM So the opportunity to redevelop naked, whether North
9:15:54AM Boulevard homes, or whether it's all the property that is
9:15:57AM owned by the government, almost to Columbus avenue.
9:16:01AM To create an environment that is Riverfront focused, that is
9:16:06AM mixed use, affordable, for-market housing is an opportunity
9:16:12AM we will not be presented with again.
9:16:14AM So there's a lot going on.
9:16:15AM We have a number of projects that are underway.
9:16:19AM You've seen, many of you were at the opening of the
9:16:22AM Floridan.
9:16:22AM Mr. Mark cop list did an amazing John.
9:16:26AM Be the federal courthouse, again, another contract that you
9:16:29AM approved.
9:16:30AM Will be breaking ground and getting started quickly.

9:16:33AM I even saw last night that the Kress Building is being
9:16:38AM energized and activated for the RNC.
9:16:44AM That's the last piece in that Franklin Street corridor that
9:16:47AM will transform that environment.
9:16:50AM The Avenue of the Arts, we will be ready, fences will be
9:16:53AM down in time for the RNC.
9:16:54AM Some of the artwork still has to be placed there.
9:16:57AM But that will be ready as well.
9:16:58AM The Riverwalk grant, we collectively will finish what five
9:17:04AM mayors prior to this administration have attempted to do.
9:17:08AM And that is to finish that Riverwalk.
9:17:10AM Thanks to the Obama administration, who gave us $11 million,
9:17:14AM we are now going to be in a position to finish that land
9:17:17AM piece on Kennedy Boulevard.
9:17:18AM Currently there is an uninterrupted stretch of about a mile.
9:17:21AM This last piece from Curtis Hixon Park over to the Cap Trust
9:17:29AM piece will finish that Riverwalk.
9:17:31AM And we'll be able to say with a great deal of pride and a
9:17:34AM great deal of gratitude from mayors going back to Mayor Bill
9:17:38AM Poe that we have finished this Riverwalk.
9:17:41AM I think you will see that change.
9:17:45AM Permit activity is up.
9:17:47AM Commercial about 10% up.
9:17:48AM We have underway currently upwards of $300 million in
9:17:52AM projects that are ongoing out in the community.

9:17:55AM From multi-family in Channelside, multi-family in west Hyde
9:18:01AM Park, north Hyde Park in some of the work Tampa general is
9:18:05AM doing, there's a $300 million bubble coming through that
9:18:08AM will help us on the revenue side.
9:18:10AM On the neighborhood side of things, a number of programs
9:18:13AM that we have launched over this last year with your help,
9:18:15AM including operation win.
9:18:17AM Which as you know Jake Slater really deserves the credit for
9:18:21AM pulling that together.
9:18:23AM It's working with our neighborhoods to improve their quality
9:18:25AM of life, using folks who are on some type of community
9:18:28AM control to give back to their communities.
9:18:31AM We are out there, I think it's once every month in different
9:18:33AM neighborhoods, going through alleys and rights-of-ways and
9:18:37AM cleaning things.
9:18:38AM Really has a direct impact on peoples' lives.
9:18:42AM Improving stormwater drainage throughout the city.
9:18:44AM Next week, you are going to be voting on some parks and fee
9:18:48AM reductions.
9:18:50AM For me it was more important that we get the kids in our
9:18:53AM center and get them off the streets.
9:18:55AM And I think, and Greg Bear can talk to this later on.
9:18:59AM He did a pilot program this spring where they eliminated the
9:19:02AM rec card for spring soccer.
9:19:04AM And as a result of that, we saw 47% increase in

9:19:08AM participation.
9:19:09AM So what will happen, the number of customers will increase
9:19:12AM so the reduction in fees I think will end up, we will have
9:19:17AM significantly more young people in places where our coaches
9:19:20AM and our rec leaders can mentor them and protect them because
9:19:23AM otherwise I can tell you that they're going to be out on the
9:19:25AM streets and they are going to be Chief Castor's problem.
9:19:28AM So we are far better to do that and take a short-term hit
9:19:32AM and in the long-term benefit this community.
9:19:34AM Additional opportunities in the neighborhoods.
9:19:36AM The opportunity corridors that you have seen in our downtown
9:19:40AM areas.
9:19:41AM All of the gateways into our downtown areas have been
9:19:43AM energized and invigorated and brought back to life.
9:19:48AM It is going to be a spectacularly beautiful city.
9:19:51AM Not just for the RNC, but for all of us for eternity.
9:19:55AM We're going to stay on top of maintenance.
9:19:57AM Not going to let those corridors go to seed, if you will.
9:20:00AM And the opportunities each year to do different sections of
9:20:04AM the city in concentric circles moving out from downtown is a
9:20:10AM commitment we are going to make.
9:20:11AM Next year we may go from Martin Luther King into the
9:20:14AM downtown area.
9:20:15AM Year after that, from Hillsborough into Martin Luther King.
9:20:17AM Identifying these gateways and doing what we can to make

9:20:20AM sure that they deserve -- they get the credit that they
9:20:23AM deserve.
9:20:24AM Public safety.
9:20:28AM I can't say enough about the leadership of Chief Castor and
9:20:31AM the Tampa Police Department.
9:20:32AM Crime in the City of Tampa dropped 7% from 2011 to 2012.
9:20:43AM That represents in this Councilmembers is almost unheard of
9:20:47AM around America.
9:20:48AM That represents a drop of nearly 65% in crime in the last 10
9:20:55AM years.
9:20:57AM I mean, that is an astounding number.
9:20:59AM And most importantly, you know what that translates too?
9:21:02AM That's over a hundred thousand less victims.
9:21:05AM And those victims are us.
9:21:07AM They're our family members, they're our neighbors.
9:21:11AM Members of this community.
9:21:12AM Tampa police department has done an amazing job in reducing
9:21:15AM those crimes and doing it without adding significant
9:21:18AM additional personnel, by changing their tactics, changing
9:21:22AM their strategies, being flexible and Chief Castor and the
9:21:26AM entire command staff of Tampa Police Department deserves an
9:21:30AM awful lot of credit.
9:21:31AM We are a far safer community because of what they do and
9:21:35AM those men and women need to be thanked every time we see
9:21:38AM them.

9:21:38AM And I appreciate what you guy does every Thursday in
9:21:40AM honoring some of them.
9:21:42AM Some of the other things we have been involved in.
9:21:43AM A gun buy-back, where we took a thousand guns off the
9:21:47AM street.
9:21:47AM That's an amazing number.
9:21:49AM A thousand guns not in standards a of people who would
9:21:51AM commit crimes or kids who may find them and accidentally
9:21:54AM shoot themselves.
9:21:55AM We have built a new fire station in New Tampa.
9:21:58AM A number of you were out there, fire station 22.
9:22:01AM In addition to all the things that we normally do, as a
9:22:05AM city, and as an administration, as a staff, we are in the
9:22:09AM midst of hosting the biggest thing Tampa has ever done.
9:22:14AM I've been around for three of the four Super Bowls.
9:22:16AM Hosting the Republican National Convention is ten times more
9:22:20AM difficult than all of those combined.
9:22:22AM And in addition to all of their day-to-day jobs, all the
9:22:26AM people that you see behind me have been working other jobs
9:22:29AM to get ready for this convention.
9:22:31AM I mean, Santiago Corrada has done an amazing job
9:22:32AM coordinating all of these folks.
9:22:36AM Chief Castor, our transportation people, our purchasing
9:22:38AM people, Tampa fire rescue.
9:22:40AM We have been all hands on deck to get ready for Tampa's

9:22:44AM coming-out party.
9:22:45AM Because other than the Olympics, this convention will be the
9:22:49AM second-most-viewed television event in the entire world this
9:22:56AM year.
9:22:57AM This is our time to shine as a community.
9:22:59AM This will be a lift for us as a city, unlike anything we
9:23:03AM have ever done.
9:23:04AM So to all the folks that have been involved in this, which
9:23:06AM is pretty much everybody here behind me, we're going to put
9:23:09AM on one heck of a show.
9:23:11AM We're going to put on one heck of a show.
9:23:13AM And we're going to tell the world Tampa's story.
9:23:16AM Will there be incidents?
9:23:17AM Absolutely there will.
9:23:19AM Have we tried to anticipate everything we could?
9:23:21AM You belt you.
9:23:23AM We have trained harder.
9:23:24AM I think we are ready.
9:23:26AM It's game time.
9:23:27AM All of us, particularly Chief Castor, are ready to go play.
9:23:30AM And we're ready to tell Tampa's story to the entire year.
9:23:33AM 10 years from now 20, years from now they will look back on
9:23:36AM this event when we hosted the RNC and they will say this was
9:23:39AM Tampa's turning point.
9:23:40AM This is when we joined those great cities around the world

9:23:44AM as somebody, as a place of destiny.
9:23:46AM So, this year's budget is a total of $804.4 million.
9:23:53AM The total budget increases about $45 million from fiscal
9:23:59AM year 2012.
9:24:00AM That is largely due to enterprise fund activity, including
9:24:04AM in this amount is the $11 million we got from the federal
9:24:08AM government for the Riverwalk grant.
9:24:09AM In addition, stormwater and wastewater have some capital
9:24:12AM projects ongoing.
9:24:13AM We also have $27.8 million deficit.
9:24:22AM You heard me reference that early in my comments.
9:24:25AM What you see on the screen here are some of the things that
9:24:29AM contribute to that.
9:24:30AM Obviously, we have got significant capital projects going
9:24:33AM on, both in all of our enterprise funds.
9:24:36AM We have got pension increases to the tune of about
9:24:40AM $3.2 million.
9:24:41AM I will tell what you this doesn't include is the first
9:24:43AM quarter performance, in which the stock market did
9:24:46AM significantly better.
9:24:47AM So obviously as you know, our pension funds are tied to the
9:24:52AM performance of the stock market.
9:24:53AM We think over the next year or so, if the stock market
9:24:56AM continues to perform as it does, this number will drop.
9:24:58AM But this number does not include the first quarter's

9:25:00AM performance.
9:25:01AM You have obviously got salary increases there in terms of
9:25:05AM merit and step increases.
9:25:08AM Let me talk a little bit about what you saw here in terms of
9:25:11AM a two percent negotiated payment.
9:25:13AM As you know, when I came to office last year, we rein-stated
9:25:19AM the merit increases for ATU, Tampa fire, local 754 and the
9:25:25AM PBA.
9:25:26AM We structured a two year labor contract.
9:25:29AM We are beginning of the second year.
9:25:31AM We reinstated the steps so all those employees would get
9:25:37AM merit and step increases.
9:25:38AM We also put into that contract what's called a wage
9:25:41AM reopener.
9:25:42AM That means that, bargaining units have the opportunity,
9:25:47AM along with the administration, to revisit the wage issue.
9:25:50AM That's all that we are allowed to talk about in the context
9:25:54AM of lakes negotiations.
9:25:55AM What I have proposed for those -- and bear in mind,
9:26:01AM virtually everybody last year got something.
9:26:04AM Virtually everybody last year got something.
9:26:08AM The only group that did not get anything were those
9:26:12AM employees, both bargaining unit as well as employees that
9:26:15AM are administrative and, you know, the unclassified
9:26:20AM employees, that were maxed out.

9:26:22AM That were at the top of their pay grade.
9:26:24AM So you had a lot of senior patrol officers, MPOs,
9:26:28AM sergeants, captains in the fire department who got nothing.
9:26:31AM And had not gotten a pain crease for three or four years.
9:26:35AM So what we did this year, and I propose this to the PBA, and
9:26:40AM I'm happy to report today that they took it to their members
9:26:42AM and was approved by over 70%.
9:26:45AM Was that we would do a two percent nonrecurring, one-time
9:26:52AM check to those members who were maxed out, who had not
9:26:57AM gotten a pay raise in three or four years.
9:26:59AM So at the end of this, over the last two years, last year
9:27:05AM and this year, everybody in the city will have gotten
9:27:08AM something.
9:27:08AM And I believe they deserve it.
9:27:11AM PBA approved it upwards of 70%.
9:27:14AM Fire and ATU still have yet to engage their members.
9:27:19AM But I will extend to them the very same offer that I made to
9:27:22AM the police department.
9:27:23AM And I am hopeful that their members will see the value in
9:27:27AM this.
9:27:27AM So that's what you see in there in terms of two percent
9:27:31AM negotiated payment.
9:27:32AM Property value reductions, obviously 2.3 million.
9:27:36AM This last one is something I think you should be proud of.
9:27:39AM Health care costs are going up.

9:27:41AM We all acknowledge that.
9:27:42AM Because of the clinics, that this City Council approved,
9:27:47AM health care costs for us are rising at a much slower rate
9:27:50AM than they are for everyone else.
9:27:52AM To the extent that we have had 3800 employee patient visits
9:27:57AM to these two clinics.
9:27:59AM For a total of 17,000 office visits since the two clinics
9:28:03AM were implemented.
9:28:04AM So what that tells me is our employees recognize the value
9:28:07AM of preventive medicine, that they're not waiting until they
9:28:10AM get really sick.
9:28:10AM That these clinics are paying for themselves and that I
9:28:14AM through over time always our employees get healthier and
9:28:17AM healthier and we encourage them to be healthy, and they stop
9:28:20AM making destructive decisions in their health, like smoking
9:28:23AM and overeating, things like that, that we're going to see
9:28:27AM this health care numbers.
9:28:28AM I think we can be looked upon as a pioneer in addressing
9:28:33AM rising health care costs.
9:28:34AM This is the chart that I talked about.
9:28:39AM This is the general fund revenue it is, property tax
9:28:43AM revenues going back to 2007, where we saw $166.2 million
9:28:50AM being derived from property tax refer news, to what we have
9:28:53AM now in fiscal year '13 of $115.28 million.
9:28:58AM That's a big whack.

9:28:59AM That is a devastating reduction in revenues to the city.
9:29:05AM And as all of you know, the cities by virtue of the way
9:29:08AM Florida is structured with no personal income tax are
9:29:12AM heavenly dependent on property tax as the economic engine,
9:29:16AM as is the school system.
9:29:17AM This chart alone tells you the situation.
9:29:20AM And tells you how over the last five years the city has had
9:29:25AM to do what we have always done with far less revenue.
9:29:28AM That number is serious.
9:29:30AM And that's why we find ourselves in a predicament that we
9:29:34AM are.
9:29:34AM When you look at how we spend our money, this is all funds
9:29:38AM both enterprise and general fund.
9:29:41AM It's broken out by general fund, enterprise, is 291 million,
9:29:47AM general funds about 347.
9:29:49AM If you go to the next slide, this is how the general fund
9:29:53AM breaks out.
9:29:54AM As all of you know, our enterprise funds are structured so
9:29:57AM they allegedly and hopefully pay for themselves.
9:30:00AM Some cases, that's not the case.
9:30:01AM But we're going to get to that in a second.
9:30:04AM But what I want you to see is look at how much public safety
9:30:07AM takes out of that general fund.
9:30:08AM 62% of the money that we raise from general fund --
9:30:13AM $213 million is to cover the cost of our police and fire

9:30:17AM department.
9:30:17AM They are expensive departments because they are largely
9:30:21AM labor intensive.
9:30:22AM And personnel costs, as we all know, tends to drive these
9:30:25AM budgets.
9:30:26AM But that's a big number.
9:30:30AM That's not something we should, you know, argue about
9:30:33AM because I think you've seen corresponding reduction in
9:30:35AM crime, which helps all of us.
9:30:37AM But that is the nature of providing a law enforcement agency
9:30:41AM and a fire response that is necessary to cover what we do
9:30:45AM every day.
9:30:45AM I've reduced the general fund budget by about $4.8 million.
9:30:50AM You've seen some of the things on this page that will tell
9:30:52AM you how we did it.
9:30:54AM I asked all the departments on top of last year giving me a
9:30:58AM five percent, 10% and 15% reduction scenario, I asked them
9:31:03AM to go back again this year and give me another five percent.
9:31:06AM Just like last year, gave us a menu that we could go through
9:31:09AM to make the appropriate decisions as to where we had room to
9:31:12AM cut.
9:31:13AM Where there were unfilled vacancies that don't need to be
9:31:16AM filled.
9:31:16AM We have tried to do this as surgically and strategically as
9:31:20AM we possibly can.

9:31:20AM We have done it without laying anybody off.
9:31:23AM Because for me in this economy, if you lay somebody off,
9:31:26AM particularly some of our low skilled employees, it is the
9:31:29AM equivalent of a death sentence.
9:31:31AM So we have tried very, very, very hard not to have to do
9:31:35AM that.
9:31:35AM So some of the steps that we have taken to address the
9:31:39AM $27.8 million shortfall are:
9:31:46AM We of looked at each of the departments and asked them how
9:31:49AM they could help us reduce our costs.
9:31:51AM What you see on this page is how some of the parks and
9:31:54AM recreation, police and other departments have come back to
9:31:57AM us and said Mayor, this is where we think we can find
9:32:01AM savings.
9:32:01AM It may number the historical patterns of departments having
9:32:05AM a little bit more at the end of the year that we were able
9:32:08AM to grab and then give them a more realistic budget.
9:32:11AM But everyone weighed in.
9:32:12AM Everyone understood that this was a challenge and everyone
9:32:17AM did their very best to make sure that we could come to the
9:32:20AM table with a balanced budget.
9:32:22AM The solid waste department and City Council was very helpful
9:32:25AM on this, and I have to thank you.
9:32:27AM There were really two departments that when we all got here
9:32:30AM in 2011, needed a little TLC.

9:32:34AM For various reasons.
9:32:35AM Solid waste was one of them.
9:32:38AM And we came to you with a five year program that allowed us
9:32:45AM to restore solid waste to fiscal responsibility.
9:32:51AM We worked have -- we were very much at risk and I appreciate
9:32:56AM you all recognizing that fact.
9:32:57AM Because we would not have come to you with the package that
9:33:00AM we did had it not been a rather dire circumstance.
9:33:03AM And you did the right thing.
9:33:04AM And I know it was challenging, I know it was painful and I
9:33:08AM want you to know that we appreciate it.
9:33:10AM But what you did is put them back on a path where solid
9:33:13AM waste and as evidenced by a report that we just got back
9:33:16AM from the rating agencies which literally praised the tough
9:33:20AM medicine we all imposed on ourselves and recognized that
9:33:22AM because of what you did, solid waste is going to be fine.
9:33:26AM Solid waste is going to be fine.
9:33:27AM The other department that we have challenges with, that
9:33:30AM should be an enterprise fund is parking.
9:33:32AM We have been discussing this for a year and a half.
9:33:37AM And we are looking at some solutions.
9:33:39AM One of which I'm going to talk about this a second.
9:33:42AM But that is a long-term challenge that I think we're going
9:33:44AM to resolve.
9:33:45AM It's not going to be painless.

9:33:47AM But we don't have a choice.
9:33:48AM I mean we have got to fix it.
9:33:50AM Some of the decisions that were made years ago as to where
9:33:53AM and why and how and some of the deals that were structured
9:33:56AM in conjunction with the construction of parking lots made it
9:33:59AM is impossible to run as an enterprise fund.
9:34:01AM And so, we are all living with things that we did not
9:34:05AM initiate, but we have to deal with.
9:34:08AM There's no point in casting stones.
9:34:09AM It is what it is.
9:34:10AM We're going to get it fixed.
9:34:12AM We're going to get it running and we're going to be as
9:34:14AM competitive as we possibly can.
9:34:16AM So, some of the other steps that we have taken, you heard me
9:34:20AM talk about parking.
9:34:23AM We are going to have to do something that I would generally
9:34:25AM prefer not to do, but we don't have a choice.
9:34:28AM And part of that is to push a little debt downstream.
9:34:33AM We had certain amount of money set aside for the ERP, which
9:34:38AM as you know is the joint infrastructure technology program
9:34:42AM that we are doing with the county.
9:34:44AM The number came back in significantly larger than what we
9:34:49AM had budgeted.
9:34:49AM So we made the decision to finance the acquisition of all of
9:34:54AM this technology.

9:34:55AM And in doing so we freed up the cash we had set aside for
9:34:58AM this.
9:34:59AM And applied that to the deficit.
9:35:02AM The same thing is going to be true of the parking debt.
9:35:05AM The parking system was costing us about $6 million a year.
9:35:08AM That we were coming out of general revenue to pay for what
9:35:11AM should be an enterprise fund.
9:35:12AM That is not sustainable over time.
9:35:14AM And so what we have decided to do is to push the debt on the
9:35:19AM parking system out.
9:35:21AM It will cost us some money.
9:35:23AM Will cost us some interest.
9:35:24AM But what we will be able to do is free up what would have
9:35:26AM been the $6 million that we would've applied to that parking
9:35:30AM problem and use it to help fix the deficit.
9:35:35AM There's a number of other things in here where we have saved
9:35:40AM $2 million.
9:35:41AM The convention center is doing very, very well.
9:35:43AM Revenues are up at the convention center.
9:35:46AM We other to have a big year this year as a result of the
9:35:48AM RNC.
9:35:48AM Tampa Sports Authority, our obligations where are somewhat
9:35:53AM reduced.
9:35:55AM So, at the end of this, what we are left with is an
9:35:59AM $8.7 million fund balance decision.

9:36:05AM As many of you know and because I did the same thing last
9:36:10AM year and I will continue to do it as long as I'm the Mayor.
9:36:13AM The previous Mayor, to her credit, left us in fairly good
9:36:18AM financial shape.
9:36:19AM She was a good steward of our resources and left us a fund
9:36:23AM balance, which in essence is sort of a rainy day fund for
9:36:27AM the city.
9:36:27AM When she took office it was $20 million.
9:36:29AM When she left offers, it was $120 million.
9:36:32AM And as a result of that, we have the ability in these very,
9:36:36AM very dire times to tap that fund balance to make up
9:36:41AM shortfalls, if need be.
9:36:42AM We have tried consistently, because that is not a preferred
9:36:46AM option.
9:36:46AM But in this case, it's the only option.
9:36:48AM And so we will tap fund balance for about $8.7 million.
9:36:53AM The end result of all of that is that we will submit to you
9:36:57AM today a balanced budget.
9:36:59AM Without tax increases, without laying people off and still
9:37:03AM being able to pay our employees that do a great job for us
9:37:06AM every day.
9:37:07AM Our fund balance remains very, very healthy.
9:37:10AM In spite of tapping it last year for about 6 and tapping it
9:37:14AM this year for 8.7, our fund balance by Wall Street standards
9:37:20AM is in good, good financial shape.

9:37:23AM We have about 27% coverage, which is very, very strong for a
9:37:28AM city our size.
9:37:29AM The other thing that you hear a lot about around the
9:37:32AM country, and I think it directly goes to the contributions
9:37:37AM of the Mayors that preceded me, and how diligent they were
9:37:41AM about making sure that they lived up to pension obligations.
9:37:44AM I mean all of us have heard horror stories of unfunded
9:37:47AM pension liabilities out there around the country.
9:37:50AM You have cities and municipalities and counties that have
9:37:52AM only funded 20% of their obligations to their retirees.
9:37:56AM I will tell you, with a great deal of pride, that the mayors
9:38:00AM that preceded me have funded their obligations to the tune
9:38:03AM of a hundred percent.
9:38:05AM Our fund balances in our respective pensions are at 99%
9:38:09AM funded and 90% funded.
9:38:11AM There is no looming pension liability.
9:38:15AM There is no looming pension crisis for the City of Tampa.
9:38:18AM And that is to the credit of a lot of folks who preceded us,
9:38:23AM as well as great financial management by the pension funds,
9:38:26AM particularly the police and fire pension fund.
9:38:29AM Which in my evidence, a role model how to grow a pension
9:38:35AM fund, how to run a pension fund.
9:38:36AM This is accounting nonsense.
9:38:40AM [ Laughter ]
9:38:44AM >>MAYOR: This is stuff we have to put in there.

9:38:47AM I don't understand and I don't expect you too either.
9:38:50AM All right.
9:38:50AM The millage rate.
9:38:53AM Another something we should be proud of.
9:38:55AM We have not raised the millage rate since 1988.
9:38:58AM I was there the last time it happened.
9:39:00AM As you see from this chart, 2007, our rate was 6.5390, which
9:39:06AM is what it had been since 1988.
9:39:07AM The rollback rate puts us now at 5.7326.
9:39:11AM There will be no millage increase this year.
9:39:14AM And I think that's something all of us should be proud of
9:39:17AM because the folks that sent us here expect us to live within
9:39:19AM our means, even in spite of the ongoing financial crisis.
9:39:23AM So for the average homeowner, the average home in the City
9:39:27AM of Tampa assessed value at 157,000 minus the $50,000
9:39:32AM homestead exemption.
9:39:33AM Taxable rate at 107,000, multiplied times our millage and
9:39:38AM average tax assessment in the City of Tampa is $613.
9:39:41AM Which I think given the services that we give to them is a
9:39:45AM bargain.
9:39:45AM And we should be proud of holding the line on taxes.
9:39:48AM Here's another chart of how much we receive in property tax
9:39:53AM this year.
9:39:54AM $115.28 million.
9:39:56AM You see next to that is the cost of the police department

9:39:59AM and the fire department.
9:40:00AM $206.5 million.
9:40:03AM It is an expensive undertaking.
9:40:06AM This chart, you see how financially sound we are in our
9:40:13AM pension plans.
9:40:14AM General employees is funded at 99%.
9:40:17AM Police and fire is funded at 90%.
9:40:20AM You as Council should take great pride in that.
9:40:24AM Something near and dear to all of your hearts because you
9:40:27AM are the tip of the spear when it comes to entire acting with
9:40:30AM constituents is strong neighborhoods and quality of life.
9:40:32AM As you can see from this chart and as you can see from this
9:40:35AM fiscal year, we are committing even more money to quality
9:40:39AM neighborhoods and quality of life issues.
9:40:41AM Last year we came in at 12.4, which is 2.4 more than the
9:40:45AM preceding year.
9:40:46AM Last year Mayor Iorio's term.
9:40:49AM We are upping that to $15 million because it's important.
9:40:52AM It's important to me and important to you because you are
9:40:55AM out there on the street, interacting with folks.
9:40:58AM They need to know that we are hearing their concerns and so
9:41:00AM you will see an increase in that fund as well.
9:41:03AM Some of the projects that we will be undertaking, as all of
9:41:11AM you know, we have been in the midst of looking at our
9:41:14AM aquatic facilities to where the needs are.

9:41:18AM Obviously the two pools also we worked on this year were
9:41:21AM Williams pool and Roy Jenkins.
9:41:23AM Both of those are well on their way to being completed.
9:41:26AM We're looking at our other facilities, but I will tell you
9:41:29AM unequivocally, we have to make business decisions when it
9:41:33AM comes to some of our facilities.
9:41:34AM If the use is not there, the demand is not there, it makes
9:41:37AM no sense to put a lot of money into projects that don't make
9:41:40AM sense.
9:41:40AM And so we need to be careful about how we do this because
9:41:43AM it's not the construction costs, it's the operation and
9:41:45AM maintenance ongoing that ends up costing us a lot of money.
9:41:49AM Perry Harvey Park you see, street resurfacing, sidewalk
9:41:52AM construction, those are some of the numbers.
9:41:57AM These are some of our needs over the next, over the next
9:42:02AM year.
9:42:02AM And our capital improvement program, actually it's from
9:42:05AM fiscal year '13 to fiscal year '17.
9:42:08AM We have a lot of needs.
9:42:10AM We are an old city, we have aging infrastructure.
9:42:13AM And we need to stay on top of it.
9:42:15AM And to do that in an environment where we have less
9:42:17AM resources, where there is less federal money is a challenge.
9:42:21AM And we often end up Band-Aiding hundred-year-old pipes.
9:42:25AM But we're doing the best we can.

9:42:27AM And each year we try to do a little bit more.
9:42:30AM But we definitely try and stay ahead of where we are.
9:42:32AM This is near and dear to your heart.
9:42:34AM You're going to get a big chart with this shortly.
9:42:37AM These are your individual City Council districts.
9:42:39AM For those of you who are at large like I was, take credit
9:42:43AM for all of them.
9:42:44AM [ Laughter ]
9:42:46AM >>MAYOR: For those of you who are single member districts,
9:42:49AM what we have done for you is highlighted in each of your
9:42:52AM districts all of the CIP projects that we are undertaking
9:42:56AM this fiscal year, so you can go out and talk about it to
9:42:59AM your friends and neighbors.
9:43:00AM Not included in this is last year's projects.
9:43:03AM Some of which are still under way.
9:43:04AM And also not included in this is road resurfacing.
9:43:07AM Which I know is a big deal for a lot of us.
9:43:10AM I hit those potholes too.
9:43:12AM And road resurfacing is not included in this because it is
9:43:15AM an ongoing exercise that we are involved in all over the
9:43:19AM city.
9:43:19AM Some of the major capital projects we talked about earlier,
9:43:22AM the Riverwalk.
9:43:23AM Thanks to the Obama administration, the continued
9:43:27AM rehabilitation of some of our aquatic facilities.

9:43:31AM Perry Harvey Park, as the old Central Park village
9:43:36AM transforms itself into something new and something different
9:43:39AM and something we all should proud of, in terms of the Encore
9:43:42AM project.
9:43:43AM As they come out of the ground, we want to make sure we have
9:43:45AM the green space up and running at the same time.
9:43:48AM Perry Harvey Park will be a great transition from Encore
9:43:51AM into our downtown areas.
9:43:52AM Waterworks Park, as many of you know, we are in the midst of
9:43:56AM negotiating with Richard Gonzmart for the rehabilitation of
9:43:59AM the Waterworks Park.
9:44:01AM We're going to reclaim the spring there.
9:44:03AM You just approved last week I believe the expenditures for
9:44:07AM Waterworks Park itself.
9:44:08AM I would encourage you strongly to sever the existing
9:44:16AM relationship, Tampa Heights relationship.
9:44:18AM I can't tell you how necessary that is for us to move
9:44:21AM forward and start anew.
9:44:23AM As you heard from Mr. Gonzmart's representatives last week,
9:44:26AM we need that fresh relationship.
9:44:28AM And I hope you see it the same way because we need to get
9:44:31AM that going.
9:44:32AM That will be a spectacular project and will anchor the Tampa
9:44:35AM Heights area and the north end of the Riverwalk.
9:44:38AM Which I think will be really an exciting destination.

9:44:41AM Some of the other major stormwater projects, Drew Park,
9:44:45AM obviously is in the midst of a three phase project.
9:44:51AM This is something near and dear to a lot of your hearts.
9:44:55AM Many of you were involved, I was not, in the decision and
9:45:01AM the recommendation to deal with the whole issue of canal and
9:45:05AM canal drainage.
9:45:06AM And the sediment issue in some of those canal also.
9:45:09AM Always many of you recall, the members of the Council that
9:45:12AM sat on this before, I think Councilmember Mulhern had set
9:45:16AM aside a million dollars in the previous budget.
9:45:18AM EPA backed away from a grant for another million dollars.
9:45:22AM I think we have an obligation because we made commitments to
9:45:26AM those folks to get that job done.
9:45:28AM And Councilmember Cohen has been very active with the
9:45:31AM neighbors out there.
9:45:32AM I think it's the right thing to do.
9:45:33AM We have been dealing with this for a decade.
9:45:38AM We need to live up to those commitments, despite the fact
9:45:42AM the EPA walked away from a commitment.
9:45:45AM But we have in the budget an additional million dollars to
9:45:48AM get those canals cleaned up.
9:45:51AM And I think as Councilmember Cohen knows, having attended a
9:45:55AM meeting just recently, vast majority of the neighbors and
9:45:59AM the neighborhoods are not only appreciative, but are very,
9:46:02AM very supportive of this.

9:46:03AM And I look forward to getting this done.
9:46:05AM Transportation-wise, we have some major, major
9:46:09AM infrastructure improvements.
9:46:11AM Councilmember Montelione lives it every day in New Tampa.
9:46:14AM We got a lot of work under way, a lot of roads that are torn
9:46:17AM up.
9:46:18AM A lot of stormwater projects, wastewater projects that you
9:46:23AM are seeing out there.
9:46:25AM Those are great investments of our dollars and things that
9:46:27AM we need to do.
9:46:28AM We have got a wastewater project, the Krause pumping
9:46:32AM station, which most of us driver by.
9:46:34AM Right on the river that is due for some renovations.
9:46:37AM North Tampa, we have some water pressure issues.
9:46:41AM We got reclaimed water that we would like to expand.
9:46:45AM We got facilities, Tippin facility that needs some
9:46:50AM additional work as well.
9:46:54AM And we have -- you have set the dates for the public
9:46:59AM hearings on September 13th and September 27th, where the
9:47:02AM public will be encouraged to come and participate.
9:47:06AM I think when this is all said and done, Councilmembers, you
9:47:13AM should proud of this staff behind me.
9:47:15AM I mean, they have done an amazing job in some very, very
9:47:19AM difficult times crafting this budget and putting this
9:47:21AM together on top of dealing with all of the other things that

9:47:23AM they deal with every day.
9:47:24AM The result is, it's a smaller government.
9:47:27AM It's a more efficient government.
9:47:28AM It's a leaner government.
9:47:29AM And the key for us is when we come out of this recession,
9:47:32AM and I truly believe there is light at the end of this
9:47:34AM tunnel, we need to make sure that we keep our government
9:47:37AM small.
9:47:38AM And that any additional increases in valuations get
9:47:41AM reinvested in infrastructure and projects that are going to
9:47:44AM create jocks and create opportunities.
9:47:45AM But I think all things considered, in spite of that crushing
9:47:49AM deficit, to be able to put together a budget that does not
9:47:53AM lay anybody off, that does not increase taxes, and that
9:47:56AM rewards our great employees, is a compliment to this staff
9:48:01AM that's behind me and that you deal with every day.
9:48:03AM This is the new normal.
9:48:06AM It really is.
9:48:08AM You know, I've been here when we have had boom times.
9:48:11AM I've lived through a recession in the early 90s.
9:48:14AM But this is unlike anything that we have ever experienced.
9:48:17AM And it's not been easy.
9:48:22AM But I am ever the optimist because I sense things changing.
9:48:26AM And I really believe that we will come out of this in better
9:48:29AM shape because of the decision that is you have made, than

9:48:32AM most cities around Florida.
9:48:33AM I think we're going to come out poised to lead this state.
9:48:38AM You know that my focus is economic development.
9:48:40AM You know my focus is creating value and adding value to the
9:48:44AM tax rolls.
9:48:45AM We have got to find ways to grow our way out of this ditch.
9:48:49AM And I will continue to be focused on that.
9:48:51AM And I will continue to take every opportunity to literally
9:48:55AM spread the message of Tampa, Florida.
9:48:57AM But I will tell you, we can't do it without you.
9:49:00AM You have been great partners in this last year.
9:49:02AM You should be proud of what this city has accomplished.
9:49:05AM I think when we go down the list of things, and you know
9:49:08AM when I look at the list of stuff that we have done
9:49:10AM collectively over the last year, in the middle of the
9:49:13AM greatest recession that this country has seen since the
9:49:15AM great depression, you should take great pride.
9:49:18AM Not only in the job that you do, but in the progress that
9:49:21AM this city makes.
9:49:22AM I mean I truly believe that this city is ready for its next
9:49:27AM chapter.
9:49:28AM And we're going to get through this.
9:49:29AM We are absolutely going to get through this.
9:49:31AM We're going to do the tough things that we have to do.
9:49:34AM We're going to make the tough decisions.

9:49:36AM But at the end of this, we will be a better city because of
9:49:38AM it.
9:49:39AM And I think the next seven years for those of us that intend
9:49:44AM to be here for seven, are going to be good years.
9:49:46AM We will have one more difficult year I think next year.
9:49:50AM But if we continue to grow the economy, if we continue to
9:49:53AM drive those permits up, if we continue to cut ribbons and do
9:49:57AM deals and create jobs and look for opportunities to partner
9:50:00AM with the private sector, I think this city is ready for a
9:50:04AM transformation.
9:50:05AM And I think when we look back 15 years from now, 20 years
9:50:08AM from now, you will take great pride in the fact you
9:50:11AM participated in this.
9:50:12AM And they will look back and say this is when Tampa turned
9:50:15AM that page.
9:50:15AM And we were all a part of it.
9:50:17AM So I submit to you a balanced budget.
9:50:19AM I strongly encourage your adoption of it.
9:50:21AM I look forward to the public participation and I want to
9:50:25AM thank you for being such great partners for this staff and
9:50:28AM for me and I will tell you unequivocally we scant do it
9:50:31AM without you.
9:50:32AM And I am very, very thankful.
9:50:34AM So we will now give you the budgets books and the staff will
9:50:36AM be here to address any of your questions.

9:50:39AM And I am honored to be your Mayor and thankful to be your
9:50:43AM friends.
9:50:43AM [ Applause ]
9:50:57AM >>HARRY COHEN: Well, as the Mayor mentioned, we will now be
9:51:00AM taking this budget and we have a citizens budget advisory
9:51:04AM committee that is already hard at work.
9:51:07AM They have been meeting regularly and they will be making
9:51:11AM suggestions and observations to us.
9:51:14AM In addition, we will have our non-ad valorem public hearing
9:51:17AM on August 16th.
9:51:19AM And then we will have two public hearings on the budget
9:51:24AM where members of the public are encouraged to come and talk
9:51:27AM to us about their concerns.
9:51:29AM We'll have an opportunity to talk to staff.
9:51:32AM The first one's going to be September 13th at 5:00 p.m.
9:51:36AM That's a Thursday.
9:51:37AM And the second one will be Thursday, September 27th, also at
9:51:42AM 5:00 p.m.
9:51:43AM Are there any questions for staff from Councilmembers before
9:51:47AM we adjourn to the CRA?
9:51:49AM Councilmember Suarez?
9:51:51AM >>MIKE SUAREZ: I have one question.
9:51:52AM Ms. Little?
9:51:53AM I'm always happy that you sit in the front seat because when
9:51:57AM it's these discussions, you're the person and the face I

9:51:59AM want to see.
9:52:01AM >>SONYA LITTLE: Good morning.
9:52:02AM >>MIKE SUAREZ: Before we get started I wanted to reiterate
9:52:04AM what the Mayor had said in terms of the ease of doing
9:52:07AM business with all of you, especially your department.
9:52:11AM The chief of staff, all the other people that are in the
9:52:14AM city administration in terms of how open and honest you are
9:52:18AM about answers and questions.
9:52:20AM We really enjoy working with you.
9:52:22AM I don't speak only for myself, I don't believe.
9:52:24AM I think we all agree that you all are terrific to work with
9:52:27AM and we're really happy to have you here.
9:52:30AM >>SONYA LITTLE: Thank you, sir.
9:52:31AM >>MIKE SUAREZ: Having said that.
9:52:32AM [ Laughter ]
9:52:33AM >>MIKE SUAREZ: Always start with the sugar.
9:52:34AM I just have one quick question.
9:52:36AM This is an easy one.
9:52:38AM Our fund balance is, I think the Mayor said is 27% for the
9:52:43AM public -- it's 27% of the total expenditures, is that
9:52:46AM correct?
9:52:47AM >>SONYA LITTLE: Yes, sir.
9:52:49AM >>MIKE SUAREZ: And most cities, counties, other public
9:52:52AM entities, where are -- is that a number that is, you know,
9:52:57AM the right number to have?

9:52:59AM Or is it below, above?
9:53:01AM Where are we in relation to that kind of savings?
9:53:05AM >>SONYA LITTLE: An acceptable target is 20%.
9:53:07AM Of expenditures.
9:53:10AM And we have done periodic surveys to see where our peers
9:53:15AM fall.
9:53:16AM And they're all over the range.
9:53:17AM I can tell you not many of them are in excess of 20%.
9:53:20AM So the fact that we are landing for fiscal year '13,
9:53:24AM projecting 27% is a very positive.
9:53:27AM And as we speak to the credit industry, we get very, very
9:53:32AM positive feedback on that level at 27%.
9:53:36AM >>MIKE SUAREZ: And I just want to point out, and this is
9:53:39AM also just for public consumption primarily, which is one of
9:53:42AM the things the Mayor also mentioned was about where we are
9:53:44AM in terms of funding our pensions.
9:53:46AM One of the reasons why those fund balances are low
9:53:49AM throughout the rest of the country, in different
9:53:52AM municipalities is that they are now catching up to fund
9:53:55AM those pension funds that they did not fund as they went
9:53:58AM along.
9:53:59AM And that again as he mentions, is a testament to the mayors
9:54:02AM prior to this administration, that continue to fund into the
9:54:05AM pension fund.
9:54:06AM We are much healthier as a result of it and I'm glad that

9:54:09AM we're continuing that healthy trend.
9:54:11AM The second question I have, Ms. Little is, in terms of we
9:54:16AM have got two on the proposed 2013 budget.
9:54:21AM We have all funds.
9:54:22AM We have $804 million.
9:54:24AM We have got a debt service of 39.9% and then we have an
9:54:28AM enterprise fund of 36%.
9:54:30AM Does the enterprise fund number also include that debt
9:54:34AM service for those particular funds in relation to, meaning
9:54:38AM that they're separate, that number includes debt service,
9:54:41AM correct?
9:54:42AM >>SONYA LITTLE: Yes, sir.
9:54:43AM It does include debt service.
9:54:45AM >>MIKE SUAREZ: So the 291 million is not only just the fund
9:54:48AM itself but is also the debt service that we have to pay for
9:54:50AM each one of those funds?
9:54:51AM >>SONYA LITTLE: That's correct.
9:54:52AM >>MIKE SUAREZ: That's all I have.
9:54:53AM I appreciate it, chair.
9:54:54AM Thank you, Ms. Little.
9:54:56AM Thank you very much for your work.
9:54:57AM >>SONYA LITTLE: Thank you.
9:54:59AM >>HARRY COHEN: Councilmember Montelione.
9:55:00AM >>LISA MONTELIONE: Thank you, Mr. Chair.
9:55:01AM I echo Councilman Suarez's comments.

9:55:07AM The staff has been phenomenal.
9:55:09AM Each and every one of you have answered all of our
9:55:13AM questions, whenever we pose them to you during the year.
9:55:16AM And at this budget time is probably going to be the most
9:55:20AM intense questioning of our departments.
9:55:24AM Can you tell me the decrease in the Community Redevelopment
9:55:27AM Agency's contribution, exactly what is the decrease and if
9:55:37AM there's not a number attached.
9:55:39AM It just says general fund budget decreases, 4.8 million as a
9:55:44AM total.
9:55:44AM But there's not numbers associated with each of the items
9:55:47AM listed here.
9:55:52AM >>SONYA LITTLE: The number is roughly 300,000.
9:55:56AM >>LISA MONTELIONE: And how is that going to affect what we
9:56:00AM have for the redevelopment agency?
9:56:06AM >>SONYA LITTLE: As far as?
9:56:07AM I'm sorry.
9:56:08AM >>LISA MONTELIONE: Well, we're reducing, if I understand,
9:56:13AM we're reducing the general fund, I see Mr. McDonaugh is
9:56:17AM there, like kind of wanting to jump in here.
9:56:22AM Maybe he can shed some light.
9:56:24AM >>MR. McDONAUGH: Actually, what that is, it's an increase in
9:56:27AM support of administrative functions by the CRAs.
9:56:30AM So, what had happened in the past was more funds were
9:56:34AM dedicated from the CRA for administrative costs.

9:56:38AM The city has stepped up and actually absorbed more of the
9:56:41AM costs.
9:56:42AM One example is that they fund a portion now of the
9:56:46AM convention center bond, which in the past was paid wholly by
9:56:49AM the CRA.
9:56:50AM They also were absorbing a larger percentage of the
9:56:53AM administrative costs.
9:56:55AM So actually it does not negatively affect the -- what they
9:56:59AM have done is actually shouldered more of the burden to allow
9:57:02AM the CRAs to use the monies that come into them for the
9:57:06AM work in the CRA districts.
9:57:08AM >>LISA MONTELIONE: Thank you.
9:57:09AM I wanted to highlight that because I know it's been a
9:57:11AM concern of our neighborhoods and our communities who are in
9:57:14AM CRA districts, that so much of the CRA money was being used
9:57:19AM for administrative costs.
9:57:23AM So I'm always happy to hear that more general fund money.
9:57:27AM >>MR. McDONAUGH: The administration is very acutely aware of
9:57:30AM the diminished amounts of money that the CRAs have gotten
9:57:33AM in the past few years.
9:57:34AM And as in two successive years absorbed more of the
9:57:39AM administrative costs.
9:57:41AM >>LISA MONTELIONE: Thank you, Mr. McDonough, for
9:57:44AM clarifying that.
9:57:46AM >>HARRY COHEN: Okay.

9:57:47AM Well, I want to also take this opportunity to thank all of
9:57:50AM the staff for just everything that you do during the course
9:57:53AM of the year.
9:57:53AM There are so many faces in this audience I've seen at night
9:57:58AM and weekends and at neighborhood meetings, answering
9:58:01AM difficult questions and always going the extra mile for all
9:58:04AM of us and our constituents.
9:58:06AM And that goes for the police department and the fire
9:58:08AM department as well.
9:58:09AM We really appreciate it.
9:58:10AM And could not, as the Mayor said, just could not do it
9:58:14AM without all of you.
9:58:16AM We will look forward to continuing this conversation about
9:58:18AM the budget over the weeks ahead.
9:58:20AM There will be public comment and new business tonight at the
9:58:25AM evening meeting of City Council.
9:58:27AM On items of course first that are on the agenda, and then if
9:58:32AM we have any additional time for anything off the agenda.
9:58:35AM We are going to recess now and Councilman Reddick will be
9:58:41AM back in a few minutes as the chair of the Community
9:58:43AM Redevelopment Agency.
9:58:44AM Five minutes.
9:58:45AM Thank you.
9:58:46AM [recess]