LARGO – The City Commission at its April 8 workshop session examined the $200,529,300, five-year Capital Improvement Program that still keeps the city’s millage rate at 3.6514.
The CIP is a planning document for major capital improvement projects such as new buildings, road improvements, maintenance projects, computer software purchases and other items that exceed $100,000 or more.
Bob Murray, chairman of the Finance Advisory Board – an agency that studies the city’s finances and makes recommendations – said three meetings have been held to study CIP projects. He said the seven-member board made some recommendations, but essentially saw no major cuts in programs.
The board met three times last month, on March 12, 19 and 26, and heard presentations from the heads of each city department.
Kimball R. Adams, finance director, told commissioners that the city’s “rainy day” or reserve fund is in good shape, though unexpected expenses such as increasing fuel costs and the possiblility of major weather events, could reduce reserves.
“There is no such thing as having too much money in reserves,” Adams said. “Every city needs reserve money to meet unexpected expenses and we are no different.”
The city currently has equal to about 10 percent of its general fund in reserves, down from roughly 20 percent that was backed up in previous years. City officials are striving to build a 15 percent reserve to meet unexpected costs and especially in light of shaky future economics caused by state-mandated tax reform.
Amy Davis, assistant city manager, said the proposed fiscal 2009-2013 CIP calls for, among other things, substantial sanitary sewer service improvements as mandated by the Florida Department of Environmental Protection and two new recreation facilities.
The sewer project currently has an estimated budget of $54 million over the next five fiscal years. Construction of the new Community Center in fiscal year 2009 is expected to be $10.107 million and another $19.3 million is targeted for the design and construction of the Highland Recreation Complex.
To help city officials and taxpayers better understand the CIP projects, the document format was overhauled to include characterization of projects by program areas rather than by department. The new format also provides summaries, useful life cycles of purchased or constructed items, projected revenue and other information.
Davis, in her report to commissioners, said the property tax rate will remain at 3.6514 mills. However, there may be increases in the future to meet escalating costs and shortages expected by state tax reform demands.
To enable the Construction Services Fund to be self-supporting, annual permit fee increases of about 5 percent are projected. A 15 percent increase in sewer rates and a 20 percent increase in residential solid waste increases in 2010 are projected.
