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Belleair Beach holds the line on taxes

But the council considers other ways to stem a rising tide of expenses.

By SHEILA MULLANE ESTRADA
© St. Petersburg Times
published August 25, 2002


BELLEAIR BEACH -- Property owners in Belleair Beach won't face a tax increase next year after all. But their water and sewer rates are likely to rise.

The City Council agreed last week to override the recommendation of its finance committee and transfer $36,700 from its reserves. The committee had recommended increasing property taxes by 5.6 percent to cover a budget shortfall.

As a result, the city's millage rate of 2.469 mills per $1,000 of taxable property value will remain unchanged for the third year in a row.

Property taxes make up about 22 percent of all revenues in the city's proposed $1.56-million budget, which is more than 8 percent higher than the current year's budget.

One of the biggest increases in the new budget is health, dental and life insurance premiums, which have risen more than 50 percent in the past year.

Belleair Beach pays 100 percent of employee health insurance premiums.

Council member Mary Jo Henderson suggested the city consider passing on some insurance costs to its employees in the future. "Maybe this is something that has to change," she said.

Another councilwoman spoke of rising expenses in general. "I don't know how you can keep running a city with all the costs. We have to do something eventually," said Kathy Dalpiaz, who led the finance committee. "A 5.6 percent increase is not a bad increase."

Although the rest of the council agreed that additional revenue is needed, members kept employee salary increases and a $20,000 contribution to the YMCA to cover membership fees for its residents in the proposed budget.

City employees are slated to receive a 2.7 across-the-board pay increase (including cost of living). Each employee will be eligible to earn an additional merit pay increase of up to 3 percent.

"We finally have a stable staff. I think we need to reward them, not go backward," said council member Lynn Rives.

The city has agreed to join Indian Shores, Indian Rocks Beach and Belleair Shore to finance special YMCA programs for their residents.

Instead of raising property taxes, the commission plans to look at increasing water and sewer rates next year. The council asked its finance committee to consider conducting a formal rate study, required by state law, that would determine how water and sewer rates should be raised.

The city's water and sewer system is losing more than $3,000 a month. The city charges residents a flat rate, no matter how much water they use. A flat rate for the first 1,000 or 2,000 gallons consumed each month with a scaled usage rate above that amount could generate significant income, according to city officials.

"We've been subsidizing water," said presiding officer Bert Cutler.

The council is looking at other fees. One might involve charging homeowners $100 for a rental permit to lease to seasonal visitors.

The budget will be formally presented to residents during a public hearing at 6:30 p.m. Monday at City Hall. A second hearing on the final budget will be held at 6:30 p.m. Sept. 9.

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