Pensacola finance director warns of general-fund shortfall; city closes $110 million bond sale

Miss Lavoie, presenting the city’s third-quarter financial report, told the City Council the general fund is expected to finish the fiscal year with a loss driven primarily by the loss of just over $1,000,000 in franchise-fee revenue and lower-than-anticipated state sales tax receipts. “The general fund will actually finish the year with a loss,” she said.

Lavoie gave fund-by-fund detail: the half-cent sales tax was $3,900,000 at the third quarter against a $6,900,000 budget; parking-management revenues exceeded estimates after rate and enforcement changes; the stormwater operational fund finished roughly as expected following a prior assessment increase; and sanitation is likely to show an operational loss after accounting for capital-equipment surcharges. She told the council to expect a supplemental budget resolution recognizing about $54,000 in sanitation revenues on the next agenda.

On the Community Maritime Park Fund (which operates the stadium, parking and adjacent park), Lavoie warned recurring revenue will not cover larger stadium capital needs and recommended structural budget changes; developing nearby parcels to generate lease and property-tax revenue is the long-term remedy. She estimated about $2,000,000 in carryforward from local-option sales tax going forward.

Lavoie also characterized the airport fund as a relative bright spot and briefed the council on recent financing. “We closed on the $100,000,000 bond,” she said, adding that favorable market conditions allowed the city to borrow $110,000,000 instead of the planned $100,000,000 and maintain the same debt service. The finance briefing noted a large legal settlement that will negatively affect the gas-utility fund’s year-end results.

The presentation prompted council questions about the scale of sanitation shortages and parking revenues; Lavoie said parking income is roughly two-thirds fines and one-third permits and reiterated the need to monitor the general fund gap. Council members did not take formal action on the report during the agenda conference; staff indicated follow-up supplemental budget items would appear on the next council agenda.

What happens next: staff will present supplemental budget resolutions and year-end entries to the council as part of the upcoming regular meeting, and the council will see formal recommendations for any structural changes to the Community Maritime Park Fund.