The property tax rate remains unchanged at $4.425 per $1,000, but the city faces a $562,000 revenue shortfall.
By MEGAN SCOTT
Published September 17, 2004
DUNEDIN - Dunedin passed a $79-million budget Thursday and a property tax rate of $4.425 per $1,000 of taxable valuation.
Commissioners Bob Hackworth and Dave Eggers voted against the budget because planned expenses exceeded revenues. Despite a 7.5 percent tax rate hike last year and increased property values, Dunedin had to use $562,000 in reserves to balance the budget.
They joined the rest of the commission in voting to approve the millage rate, which remained at the same rate as last year.
"I find it alarming . . . that the best we can do is provide a budget that has a shortfall of $562,000," Eggers said.
An increase in insurance and law enforcement costs raised the general fund budget to about $31.3-million - a 9 percent increase from last year. Dunedin will pay 8.2 percent more for service from the Pinellas County Sheriff's Office.
Commissioner Deborah Kynes asked Eggers and Hackworth what they wanted to cut.
"You want to cut law enforcement?" she asked. "You want to cut leisure services? Do you want to cut the community center?"
Hackworth said there were several expenses that could be axed, including the hiring of seven new full-time staff members, travel for city officials and investment in the golf course.
He added that those expenses should be considered only when the city had a surplus.
"There is money in this budget that can be cut if the consensus of the commission is to have a conservative fiscal management process," Hackworth said.
Kynes said she understood the desire for a balanced budget, but said it was too late.
"Unless someone can hand me a budget, presto, I will vote on what has been presented to me tonight, which is the proposed budget which we have worked on for six months," she said.
The commission also rejected a proposed increase of $1.50 in stormwater fees.
Commissioner Julie Scales, who had previously voted for the increase, said Thursday she needed more specific information about the city's drainage projects before she could approve the increase from $4.50 to $6 per month per household.
She was concerned that the dredging of Cedar Creek would have been one of the first projects - something that would only benefit a small number of homeowners.
Scales, along with Hackworth and Kynes, voted no to the increase, which would have generated $450,000 in revenue.
Director of Public Works Doug Hutchens said that would force the elimination of some drainage projects, but Hackworth and Kynes said they wanted to find another way to support them.
Hackworth said he would make a proposal at another meeting to use Penny for Pinellas Funds. "I don't want it to be presented that by this fee not passing, we don't have at least the opportunity to make a commitment to funding significant stormwater projects this year and into the future," Hackworth said.
Commissioners also approved a $3.6-million, 5-year contract with the Pinellas County Sheriff's Office. Over the past nine years, Dunedin has saved about $22-million using the Sheriff's Office rather than maintaining its own police force.
