Commissioners take the first step toward approving an increase of $1 for every $1,000 of taxable value. The proposed hike would follow increases in sewer, solid waste and drainage rates, which take effect Oct. 1.
By SHANNON TAN
Published September 10, 2004
LARGO - The city's property tax rate will likely increase for the second time in two years.
In a 4-3 vote Thursday, city commissioners took the first step toward approving an increase of $1 for every $1,000 of taxable value. The proposed hike would follow increases in sewer, solid waste and drainage rates, which take effect Oct. 1.
The Finance Advisory Board, composed of citizens who review the budget, opposes the rate hike. Residents are also upset that commissioners have tentatively voted to give themselves a 3 percent pay raise.
"I'm against the tax increase," said resident Jim Janowski. "I believe because of the financial situation, you should be against your raises. You've got us in a catastrophic state of fiscal irresponsibility."
City officials, however, say a tax hike is inevitable. 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, while drainage and sewer rates hadn't increased since 2001.
Big-ticket expenses include the new $21-million Largo library and $4-million in new computers for police cars.
Mayor Bob Jackson, Vice Mayor Pat Gerard and Commissioner Charlie Harper voted against the increase.
"Progress is not associated with a tax increase," said Harper, who wanted a smaller tax hike. "By raising taxes, we are hurting our ability to compete (with other cities)."
If the tax increase is approved, homeowners would pay the city $4.75 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 $356.28 a year in taxes.
Revenues usually rise even without a tax increase because property values go up and the city annexes more land, resident Martha Gibson pointed out.
"I think we need to run this (city) more like a business and balance the income more with the spending," she said.
Commissioner Pat Burke said the city would not be in this position if it raised taxes incrementally over the years. Last year, the city approved a $0.35 increase for every $1,000 in taxable value.
"We are facing a 1-mill increase now because we didn't increase it enough last year," she said.
The 1-mill increase would help reduce the possibility of a projected tax rate hike in fiscal 2007, said Kim Adams, management services director.
"I don't want to see another increase for several years," Gerard said.
Commissioners also passed a tentative $112-million budget for fiscal 2005 and a planned $102-million budget for 2006.
Instead of borrowing $2.9-million for police computers in 2005, the revised budget calls for costs to be spread out over three years.
In order to do so, officials had to cut or defer general fund expenditures for the next two years.
That means a deputy fire chief position will have to go. Forget the $10,000 for city hall maintenance.
But commissioners voted 5-2 to put back the three firefighter/paramedic positions in this year's budget. The amended budget was approved on a 6-1 vote.
The final vote and public hearing on the tax rate increase and budget will be Thursday.
