Sarasota News Leader

04/05/2013

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Sarasota News Leader April 5, 2013 Page 36 If the CRA were to go away in 2016, the city would have to start paying the above expenses out of regular tax money — which it could, because the city would receive $3.1 million in regular — and unrestricted — property tax revenue when the CRA has expired. But today the $3.1 million from the base-versus-current taxes formula generates only about $500,000 in new money for the city ($3.1 minus the $2.6 million). Everything else covers existing services. The $3.5 million in county taxes kicked back to the CRA? Almost all of it ($3.4 million) covers debt service for prior bond issues. In other words, this CRA scheme made possible a series of bond issues to build capital projects, and it funded ongoing city services. What is left from the $6.6 million total is a mere $500,000 for anything new. City Commissioner Terry Turner. File photo During a February joint City-County commisIf this is hard to read, it is also hard to write. sion meeting, city commissioners pressed the I am neither a financial genius nor a brilliant county to extend the CRA, but none suggested business correspondent. But the crux of this for how much longer — or whether it would is the finances of our city, its future and ours. be a true "extension" using the same 1986 "baseline," or if the CRA should be re-estabON BASE? OFF BASE? lished using a "baseline" from another year. When the CRA ends in 2016, the city would collect the same $3.1 million, but it could County Commissioner Joe Barbetta favored spend the money anywhere. No longer would the extension but said he wants to change the the money be tied to downtown and New- administration of the CRA. Other county commissioners were lukewarm to the extension, town. but all agreed to establish a study committee The county is already factoring its $3.5 mil- to look at an extension or a re-establishment lion share into proposed out-year budgeting, and what kind of governing structure should filling a gap between expected revenues and be used. anticipated expenses in 2016 and beyond. But at least one and maybe more county com- At their April 1 City Commission meeting, 11 missioners are willing to consider extending people were appointed to sit on the committee to study the future of the CRA; the County the CRA.

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