ST. PETERSBURG — The City Council slowed Mayor Rick Baker's attempt to bank another $2 million in a rainy-day fund last week — and some members want to spend the money elsewhere.
Baker wants to save the cash, which is among unspent money when the fiscal year ended Sept. 30, for future emergencies. Yet the city already has nearly $300 million in reserves — savings that most of the council had backed keeping this year, despite tight financial times, spending cuts and some criticism.
But council member Karl Nurse said it's time to spread the $2 million to social service organizations, domestic violence prevention, policing and children's services.
"Certainly, I think this is the rainy day," Nurse said.
The mayor's office had sought a Nov. 16 public hearing in order to shift the money. But at Nurse's urging, the council voted 8-0 Thursday to delay the hearing a week so there's more time to debate where the money should go.
"Once it goes to the rainy-day fund, you can't get it out," Nurse said.
The mayor's office had no qualms with a Nov. 16 or Nov. 23 date. But a decision is due by Nov. 29, the deadline in Florida law to set aside unspent money.
The mayor's office wants to set aside $2 million based on previous spending discussions to increase the reserve fund with any leftover money, First Deputy Mayor Tish Elston said. Baker's office didn't consider using any of the $2 million to soften budget cuts, Elston said.
"I think at this point we didn't because we know that next year we're going to be facing another difficult budget," Elston said.
Council member Wengay Newton — who voted against the 2010 budget because it didn't dip into reserves — also wants to use the money. Nurse voted to approve the budget without dipping into reserves in September. But that budget didn't include the $2 million going into the rainy-day fund, dubbed the "economic stability fund."
Before the addition, it will have more than $20 million in 2010.
It's meant for one-time emergencies, including funding shortfalls, but not for recurring expenses.
Debate over the reserves flared in the recent mayoral election. Mayor-elect Bill Foster promised to protect the reserves, while opponent Kathleen Ford said the city should tap the money, including from the stability fund.
The $207 million general budget was passed without dire cuts. But five firefighter positions were eliminated, utility fees went up and there was no money set aside for a summer youth jobs program.
David DeCamp can be reached at ddecamp@sptimes.com or (727) 893-8779.
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