FY12 Adopted Operating Budget & Capital Improvement Budget

City of St. Petersburg, Florida – FY 2012 Adopted Fiscal Plan
incorporated in this budget, the total decline in city property tax revenue from the 2007 level will be
approximately $34 m illion per year. O ur expectation is that this sharply reduced revenue level
represents a new benchmark level of resources available to the city General Fund.
The taxable property value for the City is expected to decline by 10% again for fiscal year 2013 with
smaller declines in 2014, 2015 a nd 2016 as the economy recovers. Recovery is not expected to be
dramatic and new legislation at the state level may hinder the increase of taxable property values as
the economy improves.
The following chart shows the increase in taxable values and subsequent declines experienced in
FY09, FY10, FY11 and FY12. The projected taxable value of $12.1 billion for 2012 is close to the
2005 amount. During the most rapid period of taxable value growth, 2004 to 2008, the City was
able to reduce the millage rate by approximately 1.2 mills.
20,000,000,000
18,000,000,000
16,000,000,000
14,000,000,000
12,000,000,000
10,000,000,000
8,000,000,000
6,000,000,000
4,000,000,000
2,000,000,000
0
Gross Taxable Property Values
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Budget Strategy
In order to meet the challenge of providing a high level of service while experiencing the fifth
straight year of declining property tax revenue, a combined approach of substantial budget cuts,
appropriate revenue enhancements and judicious use of fund balance was required. C ity
departments submitted budget reduction packages of 1%, 3%, and 5%, which were then reviewed
carefully to determine which reductions would have the least impact on service delivery to the
residents. In addition, a number of departments participated in a service level budgeting exercise.
Most of the departmental budget reduction packages included some position eliminations or
restructuring of staffing. As a result of these measures, this budget includes the elimination of 42
full-time positions at an approximate, annual cost savings of $2.8 million; $254,000 of this amount
as a result of positions eliminated midyear in FY11. It is expected that most of the affected
employees will be offered other positions within the City and that the number of actual layoffs will
be small. Since 2001, and including the most recent position reductions, the cumulative, total fulltime
positions reduced is 373 with a substantial percentage of that total attributable to management,
professional or supervisory positions.
Fiscal Year 2012 A-5 Summary Reports