Budget director Liz Makofske told the Council Thursday that, like every year, the administration would eliminate the preliminary shortfall before public hearings in September. The current goal is to \u201cbalance the city\u2019s needs with its resources by making difficult decisions\u201d based on shared priorities.<\/p>\n
\u201cImagine literally cutting our budget 50%,\u201d said Council Chair Lisset Hanewicz. \u201cThose are jobs; those are people. That\u2019s services. What happens to the economy of a city? Because the government is a partner in making a city work.<\/p>\n
\u201cIt\u2019s so frustrating to be continuously attacked for something that is necessary in a society.\u201d<\/p>\n
The city projects property values and\u00a0ad valorem taxes<\/a>\u00a0to increase slightly again in fiscal year 2027. However, officials believe the era of high year-over-year increases is over.<\/p>\n St. Petersburg expects $426.7 million in general fund revenue and $444.5 million in expenditures. The latter number includes a $10.1 million increase in salaries and wages and a $13 million jump in employee benefits: Blaise Ingoglia, the state\u2019s chief executive officer,\u00a0admonished the city<\/a>\u00a0for those costs a day before the budget priority meeting.<\/p>\n Recent messaging from the Florida Agency for Fiscal Oversight (FAFO) and the Department of Government Efficiency (DOGE) did not deter Council members, who want to maintain or increase employment levels to reach long-set goals. Hanewicz noted that developers and residents frequently request additional permitting staff.<\/p>\n The Council appears to have reached consensus on four other budget priorities. Those include investments in public safety, environmental resiliency, infrastructure and St. Petersburg\u2019s tree canopy \u2013 particularly after an estimated 20% loss due to Hurricanes Helene and Milton.<\/p>\n Council member Copley Gerdes was the first to address the $18 million funding deficit. He is unsure if the city, still rebuilding from the \u201cdestruction we saw in 2024,\u201d will bridge that gap \u201cwithout some serious thoughtfulness, and, frankly, some changes.\u201d<\/p>\n \u201cSo, I am completely changing my budget priorities,\u201d Gerdes added. \u201cMy budget priorities are, essentially, to stay at current funding levels for non-discretionary spending. And, obviously, to increase at the levels necessary for discretionary spending.\u201d<\/p>\n He proposed a hiring freeze on new full-time employees, unless they fill a current vacancy. Gerdes said the city should not increase spending on new initiatives until the state and, ultimately, voters pass pending property tax legislation.<\/p>\n \u201cI think we need to do everything in our power to make sure we are being conservative enough that if a change were to happen, we can be nimble enough to go along with that, and we\u2019re not putting our core services at risk.\u201d<\/p>\n Tom Greene, assistant city administrator, explained the potential impact of multiple property tax relief-related bills. State leadership has pledged that at least one proposal will be on ballots in November.<\/p>\n House Bill 201 would eliminate non-school property taxes on homesteaded properties. If passed, St. Petersburg\u2019s expected revenue would plummet from $229 million to $89 million.<\/p>\n After funding the police and fire departments, officials would have $99.7 million to allocate to other departments. Those include community enrichment (which oversees parks and recreation), general government, public works, city development, and housing and neighborhood services.<\/p>\n A bill to eliminate property taxes for seniors with homesteaded properties would cut $35 million in funding and result in a 19% reduction in services across all non-public safety functions. \u201cWe know that something is going to change for us from the state level,\u201d said Council member Gina Driscoll.<\/p>\n Driscoll also noted that residents are \u201cpaying more and more every year, but they don\u2019t feel like they\u2019re getting more and more in return.\u201d She will have a \u201chard time telling people with a straight face\u201d that their utility rates will increase by another 8% in October.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-fl\/wp-content\/uploads\/2025\/10\/JS-728x90-1.png\")
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