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Spending up by $21 million, taxes down
By DAVE SHELTON
Article published on Wednesday, July 16, 2008 |
LARGO – City taxpayers will likely see a slight drop in their city tax bills this year despite a $21 million increase in city spending.
Although the city commission voted July 15 to a higher millage rate, city staff said all of its needs could be met with a much lower tax rate. The commission set the ceiling for its 2009 fiscal year tax rate at 3.8448 but will most likely lower that during public hearings in September.
The city staff and two commissioners asked that the ceiling be set at 3.6514, the same as this year's tax rate. This, they explained, would raise enough money through property taxes to support the proposed $143,387,100 budget for the next fiscal year beginning Oct. 1.
That spending total is about $21 million more than the current budget yet reflects a shortfall of nearly $2 million in city operating expenses cut by state mandates. The city has already begun service and personnel cuts to make up for that shortage.
In arguing to hold the tax rate at this year's level, Commissioner Rodney Woods continued his growing battle against almost any city spending plans. He was joined by Commissioner Mary Gray Black who has fought for lower tax rates since she was elected three years ago.
“We've been annexing property and our tax base is expanding,” Black said.
She explained that, despite a reduction in property values in the city last year, she felt no need to raise any more money from property taxes.
Woods agreed, seconding her motion but they failed to gain support from other commissioners. A vote for the “rollback” rate of $3.65 per $1,000 of taxable value showed four commissioners in favor of that ceiling with only Woods and Black voting against it.
Amy Davis, assistant to the city manager, told commissioners that if the city approves the tax rate at the “rollback” rate, a home assessed at $200,000 would be billed about $600 for city taxes, about $39 less than in the current year. She said that if the rate were set at 3.6514, the tax bill would be about $570 or $69 less than this year.
In a related development, commissioners learned that Pinellas County is planning to renege on the amount of money it has previously agreed to pay Largo for providing emergency medical services.
The contract, signed last year, calls for the county to pay Largo nearly $4 million with a 4 percent annual increase. Fire Chief Mike Wallace reported that the county, now citing state-mandated budget restrictions, can no longer afford to pay the full amount.
After negotiations with the county, Wallace said, he was able to get the county to agree to pay only $83,000 less than they were obligated to pay under the 10-year agreement.
Commissioners then struggled with whether it might cost the city more in legal fees to fight the proposed cut than the $83,000 lost. Mayor Patricia Gerard added that it might also cause “ill will” in an already tense relationship between the city and county.
Wallace asked the commission to give him time to determine if he could manage a 2009 budget without having to cut any services or jobs because of the reduced revenue before deciding whether to fight the county.
City Attorney Alan S. Zimmet advised that the county was unlikely to win such a battle if it reached the courts. He explained that the first step would be for the two sides to seek resolution through state “dispute resolution” meetings, before taking the matter into a court.
Wallace warned, however, that if the city decides to accept the funding cut, it might leave the door open for the county to cut even more next year.
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Article published on Wednesday, July 16, 2008
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