The proposal for a $1 tax-rate hike follows increases in sewer, solid waste and drainage rates.
By SHANNON TAN
Published September 9, 2004
LARGO - Opposition to the city's proposed tax rate hike - the second in two years - is building.
The Finance Advisory Board - a citizens group that reviewed the city's budget - voted against the rate increase. The Largo/Mid-Pinellas Chamber of Commerce sent out a fax to its members to let them know they could be hit by a tax increase.
Tonight, the City Commission will take the first step toward approving a property tax rate increase of $1 for every $1,000 of taxable property value. Officials will also consider proposed budget cuts that could reduce the millage rate increase.
Currently, homeowners pay the city $3.75 for every $1,000 of taxable value. That means an owner of a $100,000 home with a $25,000 homestead exemption pays the city about $281.28 a year in taxes.
The proposed hike would follow increases in sewer, solid waste and drainage rates, which take effect Oct. 1. Last year, officials approved an increase of 35 cents for every $1,000 of taxable property value.
"I don't have any confidence at all when a budget is increased from $110-million in 2004 to $124-million in 2005," said board member John Atanasio. "Staff recommended an increase of 41 additional people. Justify to me why you need 41 more people."
Atanasio said the board "diligently worked and scoured and researched and made many recommendations to the City Commission." But the commission did not adequately act on those recommendations, he said.
The board's recommendations include:
No millage increases in fiscal 2005 and 2006.
Deleting commission raises in fiscal 2005 and 2006.
Redoubling the city's efforts to obtain 100 percent grant funds for police computers.
City officials, however, say a tax increase is inevitable. The city's big-ticket expenses include the new $21-million Largo library and $4-million in new computers for police cars. And health care costs are soaring.
"I really don't want to do it, but I don't see any way around it," said Commissioner Harriet Crozier.
The tax increase is needed to provide new and enhanced services, said Kim Adams, management services director. "We are adding new police officers, we are adding a whole new police system, we will be opening a brand new library that's 21/2 times the size of the current library," he said.
The 1-mill increase would also help reduce the possibility of a projected tax rate hike in fiscal 2007, said Adams, the management services director.
Mayor Bob Jackson said that the rate hike is excessive. He supports an increase of 75 cents for every $1,000 of taxable property value. "It's an awful hit to citizens," he said of the utility and property tax hikes.
While the Largo Chamber of Commerce said it does not take a stand on the proposed increase, encouraging members only to attend the hearing, a draft of a fax sent earlier this week to its members stated that "businesses will bear the greatest burden."
Gigi Arntzen was the only advisory board member to vote against not having an increase.
"We have to face reality here," she said. "It's not going to be a pretty picture when they get done with what they need to get done to avoid a millage increase."
Arntzen said she was satisfied with changes the city staff made to the budget. Instead of borrowing $2.9-million for police computers in 2005, the proposal calls for costs to be spread out over three years.
Commissioner Gay Gentry said she does support some of the recommendations, especially one suggesting a policy that tax and utility rate increases be reviewed every three years. "In reality, taxes have to go up because the cost of living is going up," Gentry said. "I think it would have been better over the years to have some incremental increases on a scheduled basis so we wouldn't be at the point we are now."
In the past, Largo has prided itself on being able to provide services for "cheaper than cheap." The city's property tax rate stayed the same for 11 years before it was raised in 2003. Solid waste collection rates were unchanged for 11 years. Drainage and sewer rates hadn't increased since 2001.
But if the city doesn't raise taxes this year, said Commissioner Pat Burke, "we are digging our hole deeper and deeper."
Services would have to be cut as a result, Gentry said.
She calculated that her city property taxes will decrease by $14 if Largo does not raise its property tax. If the rate increases by 1 mill, she will pay $74 more a year. That money means additional firefighters and new computers for police cars, among other things.
"When I look at it like that," she said. "It's worth it."
IF YOU GO
A public hearing on the city's budget and property tax rate will be held today at 5 p.m., Largo City Hall, 201 Highland Ave.
