The City Commission says its budget could require a 29 percent rate increase. Also, some reclaimed water fees go up.
By LORRI HELFAND
Published July 16, 2003
LARGO - The City Commission, which has been mulling over its first property tax increase in 11 years, voted unanimously Tuesday for an option to raise it 29 percent.
Commissioner Pat Gerard said the city may have to raise taxes even though she doesn't like the idea.
"The discussion tonight is discussing the maximum rate," Gerard said. "No decision's been made how much we'll raise taxes, if at all."
The proposal adopted Tuesday is required to satisfy state law regarding notices to taxpayers, which will be mailed on Aug. 15.
A city staff budget proposal, released two weeks ago, called for a 22 percent tax rate increase.
Staff members said the city would need to raise taxes 75 cents per $1,000 of taxable property value to cover an increase in health insurance premiums and contributions to police and fire department retirement plans.
Staff members also projected a 50 cent per $1,000 increase the following year to help pay for a new Police Department computer system.
The Finance Advisory Board, a citizens group that will review the budget for the next three weeks, said it favored the 29 percent increase of a $1 per $1,000 rather than two tax increases back to back.
Assistant City Manager Henry Schubert said he couldn't promise that it would be enough to prevent future increases.
The commission took the advice of the citizens group.
The current tax rate is $3.40 per $1,000. That costs the owner of a $125,000 home, who claims standard $25,000 homestead exemption, $340 in city property taxes. If the 29 percent increase - to $4.40 per $1,000 - is approved, that homeowner would pay $440.
The 75 cent per $1,000 increase would provide the city about $2-million more revenue. The $1 per $1,000 increase would provide about $2.7-million.
A final decision will be made when the City Commission adopts next year's budget in September. The city will hold the first public hearing on the budget Sept. 2. The new fiscal year takes effect Oct. 1.
In other action, the City Commission:
Approved designated watering days for reclaimed water users. Property owners with even addresses would be permitted to water with reclaimed water on Mondays, Wednesdays and Saturdays and odd addresses would be permitted to water on Tuesdays, Thursdays and Saturdays.
Approved an "availability fee" for people who live in neighborhoods where new reclaimed water service is installed. Residents who live where the service is offered, but decide not to use it would pay $5 monthly - half of the fee now charged to users.
Approved a rate increase for commercial reclaimed water customers. The customer rate for in-city users would go from 40 cents per 1,000 gallons to 64 cents per 1,000 gallons and the rate for customers outside of the city would go from 50 cents per 1,000 gallons to 80 cents per 1,000 gallons.
