Weather | Sports | Forums | Comics | Classifieds | Calendar | Movies
SHANNON TANAs they struggle to pay for such items as computers in police cars, officials have sought to reduce routine expenses and avoid a larger tax rate increase.
LARGO - The City Commission took the first step Tuesday toward increasing Largo's property tax rate for the first time in 11 years.
In a 6-1 vote, commissioners tentatively approved an increase of 35 cents for every $1,000 of taxable property value.
Currently, an owner of a $100,000 home with a standard $25,000 homestead exemption pays the city about $255 a year in taxes, or $3.40 for every $1,000 of taxable value. With the new tax rate, the same homeowner would pay $281.25.
The increased tax rate would add more than $960,000 to a proposed budget of nearly $100-million for fiscal 2004. Commissioners voted 5-2 to approve that budget Tuesday night.
With several big-ticket expenses looming in 2004, such as computers in police cars, city officials have tried to trim expenditures to avoid a large tax rate hike.
Department heads, for example, were asked to recommend positions and services that could be cut. In the past few months, three rounds of cuts totaling more than $3-million reduced expenses in the $50.6-million general fund.
The budget calls for a decrease of 6.9 percent in capital and operating expenditures, but a 10.7 percent increase in the general fund.
There's the $700,000 jump in medical insurance costs, Mayor Bob Jackson noted, while the city has to make a $1.1-million contribution to the police and fire pension fund to make up for disappointing stock performance. And around $4-million for computers for police cars.
"To be able to absorb all of that . . . I think we've done a good job," he said.
Largo resident J.B. Butler said he was concerned city employees would be laid off to avoid a large property tax rate increase.
"I'm tired of talking as if the tax rate was some kind of a sacred icon," he said. "I think we need to take some perspective about this outside of the ideology and the religious devotion to the concept that taxes are bad."
Commissioner Pat Burke voted against the tax rate hike. She said she disagreed with some of the cuts.
"I will pay more not to cut Largo library's hours; I will pay to have decorations up and down West Bay Drive," she said.
"We have nickeled and dimed this budget to death this year."
Commissioners did vote 5-2 to amend the tentative budget by adding $21,300 for employee holiday gift certificates.
"That $21,000 represents half a job for somebody else," said Commissioner Charlie Harper, explaining why he voted against paying for gift certificates.
Several commissioners expressed dismay they had to eliminate positions such as the Police Department's volunteer coordinator.
"I don't think any of us feels great about this budget," Commissioner Pat Gerard said.
"We don't feel great about raising your taxes because we know many people live on a fixed income.
"You have to trust we've taken everything out of here that we can."
A second public hearing on the property tax rate will be held Sept. 11 at 5:01 p.m.
- Shannon Tan can be reached at shtan@sptimes.com or 445-4174.