Should DFAC, Museum, Blatchley House Get City's Safety Funds?

If top city finance officials have their way, money for some Dunedin organizations may come out of a fund set aside for risk safety purposes.

A $800,000 transfer from the city’s risk safety fund is set up to go directly to Dunedin Fine Art Center, the Dunedin Historical Museum and the Blatchley House, according to a preliminary budget for fiscal year 2014 to 2015.

The organizations were promised a $800,000 package to be divvied among their respective projects — $500,000 for the art center’s expansion, $200,000 for museum enhancements and $100,000 for the future renovation of the Blatchley House at Weaver Park — during a confusing 4-1 city commission vote on what was called the "quality of life initiative" in February. Talk at the time was centered on borrowing money to finance the one-time donation to those organizations.

As city officials are examining next year's budget and coming up $1.3 million short, it seems money for those organizations is now earmarked to come from a fund meant for risk safety, a self-insurance coffer that all the departments pay into. Risk safety monies are used for covering insurance issues, workers compensation and similar emergencies.

Karen Feeney, city finance director, and Rob DiSpirito, city manager, say the risk safety fund has been overpaid by $2 million the past few years, and in the interest of balancing the budget, it’s OK to make a one-time withdrawal that goes straight to the art center, museum and Blatchley House. 

At least one city leader disagreed during preliminary budget discussions Monday, July 8.

Vice Mayor Julie Ward Bujalski, who voted in favor of the $800,000 "quality of life" package in February, said it was not good practice to pay for things out of the risk safety fund that are not designated for that purpose.

“That’s kind of like paying for a park out of the water department,” she said. “It's insurance money that all of the departments have paid for. So from a policy standpoint, those departments should get their money back because they've overpaid. And those departments should be able to accomplish some of the things that they've been doing without because they've overpaid.”

Feeney said it would be possible return the monies to those departments, but it would likely mean a higher millage rate increase than already proposed and adding more city debt. 

"I've prepared those numbers and I can get those to you all," Feeney said. 

At Commissioner Julie Scales' inquiry, Feeney said there was no legal requirement to send the funds back to the departments because it is considered excess funds. Her approach to using the extra risk safety money is just philosophically different than Bujalski's position.

"I do see both points of view," Feeney said. 

Previous Coverage:

• City Finance Director Defends Tax Increase for Dunedin
• City Manager on $1.3M Shortfall: Increase Taxes