By Mayor Mark Sheldon
The City of Panama City Beach recently completed the 2022-23 budget process, approving a General Fund budget of $73,287,740.
This is the largest budget in the City’s history. But there are some unique reasons why it is so large and some of them are related to the COVID-19 pandemic.
When the pandemic began in early 2020, the world economy experienced a major shut-down. Manufacturing stopped, many businesses closed, and workers went home. We entered into about a two-year period of a global shortage of many consumer goods, electronic components, raw materials, and much more.
As the world economy opened back up, the problem was confounded by a new dilemma: a shortage of skilled labor. New labor expressions like quiet quitting, the great resignation, and ghosting described the problems our economy was having getting restarted. Because of labor and material shortages, less companies have bid on City projects, and prices have come in much higher than expected.
During this time, the City had dozens of capital projects in the works – from the construction of a new fire station to drainage projects. These funded projects have been pushed into the new budget year.
The good news is, we are ready to get started with these long-awaited projects, and they are spread across all departments. The biggest portion of our budget goes to pubic safety. Fire and Police account for 52% of the General Fund expenditures.
As you consider this long list of large capital outlays, I would ask you to look at it in terms of investment within our community. We know that some of our infrastructure is old, and we are moving forward with our 5-year plan to fix what’s broken, as well as prepare for future growth and development.
As you think about this, please remember, the City is the largest community in Florida without an ad valorem tax and we are the fastest growing community in Bay County. The one percent business tax on all goods sold within the City is our largest source of income. This is paid by our local residents, visitors and daily commuters.
This year, we have budgeted for:
• A safe room at Frank Brown Park
• A new Fire Station by City Hall (Station 31)
• A new Fire Station on Alf Coleman Road (Station 32)
• An Enterprise Resource Planning (ERP) software system to manage day-to-day business activities in accounting, purchasing, project management, utility billing, employee HR, and more
• A new Police Substation on the east end of the City
• A new K-9 facility
• Lighting for the Frank Brown Park festival site
• Improvements to North Richard Jackson Boulevard
• Construction of a fire training tower
• Construction of a safe room on Gulf Boulevard
• Adding sidewalks to Hills Road
These projects total $28.8 million and many have been in the planning for years. Some of these are partially funded by grants, and we are excited to see construction begin soon.
The Front Beach Road Community Redevelopment Area (CRA) is also a record budget which includes $58.77 million for Segments 3, 4.1, 4.2, and 4.3 as well as improvements to Powell Adams Road and Alf Coleman Road. More than a million dollars is being spent for lighting improvements on Front Beach Road and South Thomas Drive.
In the area of Storm Water, we are expending more than $6 million total for a variety of drainage capital improvement projects around the City, including the offshore outfall, Gardenia Street drainage improvements, Randy Road drainage improvements, Colony Club drainage improvements on Eagle Drive, Vestavia and San Souci improvements, and Palmetto Trace intersection improvements.
Capital projects in the Utility Department include 22 separate projects for the Water Department and 34 for Wastewater. New water mains, water main relocations, ground storage tanks, water system replacements and improvements will be made across the City in areas including Gulf Highlands, Woodlawn, Laguna Beach, Alf Coleman, the Front Beach Road CRA, Lantana, Rose Lane, Mandy Lane, Argonaut, West Laird and more.
We are doing the same kind of upgrades in wastewater, adding reclaimed transmission lines and connections, installing odor control, rehabbing gravity sewer lines, expanding capacity, replacing lift stations and much more in many of these same areas where water projects will be ongoing.
At the Aquatic Center, we will be replacing the HVAC in the locker rooms. We will also be replacing the HVAC in the Library.
Cities have many needs. We ask our staff to assess their greatest needs each year. Some things, like upgrading water and sewer services and improving drainage, cannot be postponed. Just like in your household or business, Panama City Beach consistently must balance our greatest needs and decide how to spend our funds for the greater good.
Kudos to our City Manager and Assistant City Manager, Accounting team, and Department Heads for their work on the budget, and ALL City staff for working hard every day to make sure that our public safety, recreational, utility, street, stormwater, building and planning and CRA projects move forward.
