After Director of Financial Administration Kelly Strickland dropped the news on the Sarasota City Commission that the city’s financial picture going into next fiscal year is more bleak than expected, Vice Mayor Kathy Kelley Ohlrich asked her, “Why did you feel compelled to bring this information to us now?”
“We are going into the fiscal year 2027 budget process, and I feel that you need to know,” Strickland said. “You need to know where we ended up, how we’re doing this, … so that you can see where we’re at.”
Where they are at, Strickland said during the commission’s April 21 meeting, is $4.3 million less than expected in the general fund unassigned fund balance, essentially the city’s rainy day fund. At $13.7 million, that is far less than the Government Finance Officers Association recommendation of a fund balance between 17% and 35% of the city’s annual operating budget, and significantly less than the $35.5 million in fiscal year 2022. Going into the fiscal year 2027 budget cycle, the fund balance is at 10.8% of spending, far below best practices and the city’s own policy.
The fund balance is intended to supply at least three months’ operating revenue in the event of emergency…