The Budget Process

The City of Tampa's annual budget process routinely begins in November with the preparation of initial revenue and expense estimates, which are reviewed with the Mayor. In February, departments prepare various objectives and performance reports. The Mayor meets with department managers and develops the service delivery objectives for each department. Then the Mayor determines the amount of funding, or target budget, to be allocated to each department. Targets are based on current budget levels, level of service desired by the Administration and estimates of available revenues. Each department then prepares its budget for the upcoming fiscal year within the target amount.

The resulting budgets are reviewed and requests for additional funding are considered. A Budget draft is sent to City Council in mid-July. The completed Recommended City Budget is presented to City Council in August. Finally, budget hearings are held and the Budget is adopted by the end of the current fiscal year (September 30).

November/December - Initial revenue and expense estimates are prepared and reviewed.

February/March - Mayor meets with departments and develops service delivery objectives and funding levels.

BD03il - Target budgets are finalized and allocated to each department.

May - Departments prepare budgets within target amounts.

June - Mayor reviews budgets and requests for additional funding.

July/August - The Recommended Budget is presented to City Council.

September - Public hearings are held and the budget is approved by City Council.

October 1 - New fiscal year begins.

The Budget process allows for amendments as conditions change during the year. An amendment may be initiated by the Mayor at any time and, after City Council approval, the appropriations of funds are realigned.
For further explanation of budget and financial terms, refer to the Related Financial Information section of this document.

Objectives

The City's major budget and management objectives for FY98 and future years are as follows:

Fiscal

Keep recurring expenses in line with recurring revenues.

Use private enterprise to supply public services when such agreements are cost effective.

Use Tax increment financing to combat blight and to promote economic development.

Strive for continued excellence in budgeting and financial reporting.

Review rates, fees and charges annually to be sure they continue to reflect the cost of services.

Limit rate increases to one major enterprise (water, sewer, solid waste, parking) a year, as necessary.

Provide matching funds and "seed'' money to leverage grants and other assistance.

Personnel

Recognize employees for exceptional performance and creativity.

Provide employee development by promoting training programs.

Offer City employees training, counseling and referral services for stress, drug abuse and other personal difficulties.

Stabilize labor relations through multi- year contracts.

Service

Promote the safety and welfare of Tampa's citizens by controlling and preventing crime.

Provide high quality utility services at reasonable rates.

Develop long-range plans in order to meet demands for City services.
Support City housing programs by public and private financing.

Contribute to the quality of life in Tampa by improving leisure services and facilities.

Continue support of the State Growth Management Act.

Maintain existing infrastructure and require that development contribute to growth related infrastructure improvements.

Community

Encourage public participation in developing solutions to City problems.

Encourage the development of neighborhood organizations as a means of public participation.

Obtain the support of the business community for improvements desired by the citizens.

Utilize local universities and the business community where their expertise might offer improvements to City performance.

Promote participation of women and minority business enterprises in City contracts.

Intergovernmental

Improve planning for growth within the City by coordination of various planning agency proposals.

Cooperate with other local governments in matters of regional interest.

Develop proposals for the Hillsborough County Legislative Delegation agenda on matters requiring State action.

The FY98 Budget

Total funds available in FY98 will be $445 million.



The Tax Operating funds amount to $247 million, with nearly 50% allocated for public safety.



Expenditures for Enterprise funds will total $171 million,
with the largest portion going to Sanitary Sewer.

Comparing FY97 to FY98

Funds available in FY98 will total $444.5 million. Of this, $436.5 million is being appropriated in this document for the various Tax Operating, Enterprise, Internal Service and Grant funds. Additional funds available are Bond funds($7.4 million) and previously appropriated Job Training Partnership Act funds ($.6 million).

A comparison of the major budget components is shown in the following table:

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The Tax Operating funds are increasing from $226.9 to $247.4 million, distributed as follows:

In FY98, Enterprise funds show a net increase of $1.5 million, primarily due to increases in the Water and Solid Waste Departments.

City-wide Construction Programs

In FY98, the Capital Improvement Program will be $43.8 million, an increase of $8.2 million over FY97. The primary increases are: $3.4 million in the Utility Tax Fund for Sulphur Springs Pool Improvements ($1.5 million), upgrading the City's financial system and the Year 2000 conversion ($1.3 million) and improvements to City facilities ($.5 million); the Community Investment Tax of $6.2 million for projects in the Fire, Parks, Recreation, Public Works and Stormwater Departments; and $2.4 million in Enterprise Funds for Water and Sanitary Sewer projects.

Significant decreases occurred in Transportation Impact Fees ($2.3 million decrease) due to reduced revenues and the Utility Tax Construction Bond($1.7 million decrease) which expends the remaining funds available.

The following table is a comparison of funding sources. Major projects are summarized in the following narrative.

For specific project descriptions, see the Recommended Capital Improvement Budget Book.

Personnel Authorizations

In FY98, the City of Tampa will provide the necessary municipal services to the citizens of Tampa with 4,397 authorized full-time equivalent positions, the same level of staffing as that of FY97.

As you can see from the graph, few positions have been added over the last several years. When added, they were generally for the Police and Fire Departments and for the NEAT program in the Parks Department.

For FY98, in addition to continuing the critical review process for the filling of vacant, non-uniformed positions, City departments have designated over 50 full-time positions that will remain vacant for the entire fiscal year. The savings from these positions helped balance the budget for FY98.

Tax Operating Funds Revenues/Ad Valorem Taxes

Property tax revenue is $66 million, or 27% of Tax Operating funds.
Other State and local taxes supply $101 million (41%), and various fees, charges,
revenue sharing and interest account for the balance.


Taxable property values within the City have increased by
8.29% from the FY97 Budget to the FY98 Budget.



Newly constructed properties, placed on the tax rolls for the first time in FY98,
make up $140 million of the $10.6 billion tax roll, a 9% decrease from theFY97 level.



The property tax rate remains at 6.539 mills, the same rate used sinceFY90,
due to continued efforts to contain costs and through budget control measures.



In FY98, ad valorem taxes collected by the City will total $66.0 million.
The $5 million increase over FY97 Budget resulted from changes in property
valuation and addition of previously untaxed property to the tax rolls.



Again in FY98, the cost of police services alone exceeds property tax revenues.

Sales Tax

The FY98 Sales Tax estimate, provided by the Florida Department of Revenue, is $20.8 million; 1% higher than the $20.5 million budgeted for FY97. The Florida Sales Tax rate remains at 6% and Hillsborough County has added a local option 1/4 cent for indigent health care and a1/2 cent for Community Investment projects.

Other Taxes

In FY98, Franchise Fees are expected to decrease 1.6% below the FY97 level. Reductions are primarily due to a rate rebate implemented by Tampa Electric Company during FY97. The rates charged are 6% on electricity, 5% on gas service, 1% on telecommunications and 5% on cable communications.

No growth is anticipated for Utility Tax revenues in FY98 due to a reduction in electric utility rates. The tax rate for utility services is 10%, except for telecommunications which is taxed at 7%.