Increased property values are yielding extra tax dollars for Zephyrhills.
By MOLLY MOORHEAD
Published July 28, 2003
ZEPHYRHILLS - Without raising rates, Zephyrhills will see a $367,000 windfall in property tax revenues next year.
City Council members plan to maintain the current tax rate of $6.42 per $1,000 of taxable property.
That rate is considered an increase of nearly 6 percent because property values climbed so substantially in the past year. According to county estimates, an additional $49.5-million is on the tax rolls, an increase of 12 percent.
The additional tax money puts Zephyrhills in a healthy position to start the new budget year, said City Manager Steve Spina, who presented a draft budget to City Council members last week.
It more than offsets the loss of $220,000 in revenue from Pasco County for providing fire service in districts outside the city, and it helps soften increases in employee health insurance and workers' compensation insurance costs.
The good news comes at a time when other municipal governments are having to make painful cuts.
"We're doing pretty good, actually," Spina said. "We try to watch our money. Council's pretty tight-fisted. We've been living within our means."
Three factors have created the current situation, Spina said: ability to expand and annex property, proximity to Tampa and an infrastructure already in place to accommodate the growth.
"We've handled it pretty well," he said.
One place the numbers are looking especially promising is at the municipal airport. Because of some timely reimbursements on state grants, the city will have to pay just $9,100 toward the airport deficit for the current year. That's down from the $206,000 Spina expected to pay.
And for next year, he budgeted just $12,000 in general funds to subsidize the airport.
The airport's entire 2003-04 budget is $1.3-million less than last year, when the airport invested in several large projects. The primary one, construction of nine new hangars, is nearly complete and should begin generating income as new tenants rent the space. The new budget also includes cuts in advertising, professional services and debt service.
Spina said he is pleased with the progress at the airport, which has operated in the red for several years.
"It's doing much better," he said. "It's coming a long way."
- Molly Moorhead covers news about Zephyrhills. She can be reached at 352 521-5757 or toll-free 1-800-333-7505, ext. 6108, then 29. Her e-mail address is moorhead@sptimes.com
