Bradenton to face budget crunch in 2010

BRADENTON – The city needs to prepare for another difficult budget, Carl Callahan warned the City Council on Wednesday.

He said he’s going to be starting the process early this year because sinking property values will mean less tax revenue coming in depending on valuation. If valuation falls 3 percent, Callahan said, the city could have a $1.3 million deficit. Or it could be another figure.

He said to expect a ”sizeable decrease.“ ”I’m not hoping for one. I’m hoping that the numbers are fine,“ he said. Still, ”I have to think it terms of a lot less revenue this year and how we’re going to deal with it.“

There is talk around the county government of a $12 million to $15 million deficit.

At the city workshop, Callahan also mentioned that Tax Increment Financing for the city’s Community Redevelopment Agencies has fallen, with the Central Community Redevelopment Agency taking a financial beating that puts its 2009-2010 funding below its 2006-2007 level.

The 14^th Street and Downtown CRAs have also seen funding decline, according to a handout attached to the workshop agenda.

The CCRA’s TIF of nearly $461,000 is almost $37,000 less than last year; the 14^th Street CRA fell $33,463 to $275,500; and the Downtown CRA fell $49,250 to $949,100. The total TIF decline is nearly $120,000 for all three CRAs.

The City Council will be meeting with the boards of the CRAs in March to discuss issues of mutual interest.

In the meantime, Callahan said, the TIFs are down and the CRAs will have to manage with less money.

Budget discussion

The City Clerk described ”significant decreases in revenue“ that he said are putting a strain on the government. ”One of the things we hope to see over the next few months out of these workshops is getting into the budget process real early,“ he said. ”It’s going to be a difficult budget year.“

He said he hopes to get the budget out early this year because it will affect the way the city does business and he wants to let the public have its say.

The goal is to avoid a surprise in September.

Mayor Wayne Poston said he had a reaction to state Sen. Bill Bennett’s comment that cities and counties have an expense problem, and not a revenue problem. ”That’s absolutely wrong,“ Poston said. ”We have revenue problems just like the states do.“

The city has done a good job in the downturn, Callahan said. There are 350 employees in the general fund, and 270 to 280 are public safety personnel, so there are 70 or 80 people in the general fund who are working and making the city operate.

”We have limited resources as to how to effect change,“ he said. ”That’s what we’ll be working on during the year.“