The topic of updating salaries for the mayor and commissioners took center stage, as the committee reviewed a comprehensive salary survey comparing Tarpon Springs to other cities within the county. The survey revealed that Tarpon Springs’ compensation for its officials had not changed in more than 20 years. For context, Safety Harbor’s mayor earns $6,000, while St. Petersburg’s mayor receives $169,000, with corresponding commissioner salaries also showing significant discrepancies. The potential to attract more candidates for these positions by offering competitive salaries and benefits was also discussed.

Questions arose about whether the city’s stagnant salary structure should be tied to the Consumer Price Index (CPI), similar to other municipalities like Dunedin. The committee estimated Dunedin’s budget to be approximately 35% larger than Tarpon Springs, sparking conversations on budget allocation and the importance of indexing salaries to prevent stagnation. The committee agreed to table the discussion for further exploration and data gathering, particularly focusing on Dunedin’s practices.

Following the salary discussion, the committee turned its attention to the audit report presented by Malden Jenkins, the external audit firm. The annual audit, mandated by state statutes, concluded without any issues or compliance findings. The finance department received a clean opinion. The audit report, a detailed document of around 100 pages, showed no audit adjustments and reflected positively on the city’s financial management.

The committee then reviewed the financial highlights of various funds. The general government income was reported at $786,000, with an ending fund balance nearing $8 million. Enterprise funds, operating on an accrual accounting basis, showed varied results. The water and sewer fund reported a net income of $1.4 million, while the marina fund experienced a net loss of $22,000. Notably, the city’s general fund remained balanced without using unassigned balances for the tenth consecutive year.

The proposed budget overview revealed a total city budget of $100,417,934, with the general fund comprising $36 million. Despite a property tax assessment revision from a projected 3% increase to a 0% increase, resulting in a $450,000 cut in anticipated revenue, the budget remains balanced. Proposed increases include a 2.75% rise in water and sewer rates and a placeholder 5% increase in stormwater fees pending a rate study.

Salary adjustments for city employees were also a significant topic. A cost-of-living adjustment (COLA) of 3% is anticipated, along with potential adjustments for salary compression. The total estimated cost for these adjustments stands at $1.1 million, translating to an overall increase of around 5%, consistent with trends over the past few years.

The capital improvement program (CIP) was discussed extensively, with $212 million identified for projects over the next decade, including public safety and physical environment improvements funded through user fees. Concerns were raised about rising costs for essential projects like fire and police vehicles and street paving, which could strain available funds for other initiatives.

Unfunded projects such as the Cops and Kids building renovation and Craig Park seawall construction were also highlighted. The city’s debt remains low, with options for future financing including bank notes and larger bond issues, though voter approval would be required for terms exceeding ten years.