CLEARWATER - The Board of Pinellas County Commissioners were presented with an updated proposed capital improvement program during a budget recap meeting on June 22.
The proposed six-year plan covers fiscal years 2010-2015.
Jerry Herron, bureau director of the Office of Management Budget, presented what he described as a “first pass of recommended changes for a huge program.” He said the changes were “forced by economic realities.”
The recommendation is to change the focus to an attitude of sustaining “what we have” with “cautious development of new assets,” Herron said.
The proposed program is fiscally conservative based on a pay as you go plan to avoid the use of credit, although specific projects may be considered for stand along bonding if the priority and cost benefit is warranted, he said.
CIP major revenue sources include:
- Penny for Pinellas
- Transportation impact fees
- 9th cent gas tax for the intelligent transportation system
- 1/2 cent tourist development tax
- Grants and reimbursements
- Enterprise funds used by the airport and Utilities
The biggest of these sources are Penny for Pinellas and the enterprise funds.
Herron told commissioners that Penny for Pinellas, the major funding source for government programs, was projected to be down by about 6 percent - or $125 million - from last year. He said Penny for Pinellas funds had seen an unprecedented three years of negative returns.
“In 2006 total Penny collections yielded approximately $140 million and were projected to rise to approximately $160 million in 2010,” Herron said. “Due to the severe recession, collections in 2009 are now estimated to fall to the $125 million level.”
Revenues in the 2010 to 2020 Penny extension are expected to drop from a projected $160 million to $127 million. Projections show a loss of 25 percent or $233 million for the county’s share of Penny for Pinellas funds through the years 2010 to 2020.
Transportation impact fees are down 50 percent from the previous year which is “way more than ever experienced,” he said. Last year, the fees generated $6 million. Next year, the fees are only projected to bring in $2.9 million.
The 9th cent gas tax for the ITS is down about 3 percent from last year, and the tourist development tax (beach renourishment fund) as well as the enterprise funds also are experiencing revenue issues.
“It is prudent to take steps now to address the new reality,” Herron said.
Herron said a review of the 2010-2015 CIP allocation plan resulted in a new priority for projects in all areas. He said project scopes were being reviewed for maximum cost effectiveness.
He also said operations and maintenance budgets were being re-examined as a result of current and future decreases in ad valorem revenue. The plan attempts to balance immediate needs with available revenue.
Herron said the new plan used the same criteria utilized when the CIP plan was developed in 2006 with top priority going to public health and live safety impacts and benefits. He said future operating and maintenance costs also were weighed heavily in the new plan.
“The recession finally beat the optimism out of us,” Herron said. “We have serious issues to face going forward.”
In general, the CIP budget was reduced by 25 percent with some areas seeing larger reductions in funding dependent on priority, Herron said.
Examples of programs proposed for deferred funding include roadway beautification; implementation of the Heritage Village master plan; countywide park boat ramp land acquisition and development; funding for new recreation or community centers in unincorporated areas; replacement of the county Extension center building; and others.
Other projects are being downsized. For example, roads that had been part of a road widening program will be rehabbed and resurfaced to meet immediate needs.
The commissioners asked for a workshop to consider the allocation of $225 million for the courts and jail projects. Jail overcrowding was a big issue at the time the budget was prepared and voters approved the 2010-2020 Penny for Pinellas program. Since that time, steps have been taken to alleviate the need for more jail space and overflow space is currently being used to generate money for the sheriff’s office.
“We need to do something about this” Commissioner Calvin Harris said.
The commissioners agreed to schedule a workshop on the matter sometime in the fall.
