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Two cities see budgets move in opposite directions

Oldsmar's water and sewer expenditures will decrease. Street paving in Tarpon Springs will drive up costs there.

City spending in Oldsmar is expected to go down next year, and Tarpon Springs officials expect a major road project to increase spending.

The Oldsmar City Council on Wednesday unanimously approved a $22.5-million budget for 2004-05 that includes a $3.9-million decrease in city spending.

Spending on water and sewer operations, which will account for 25.4 percent of the city's total budget, will go down more than $600,000. Spending on capital improvements, which in the past have included projects such as the library design and street paving, will decrease by nearly 60 percent to $768,000.

As part of next year's budget, which goes into effect Oct. 1, the city plans to buy a new fire rescue vehicle and to contract with the Pinellas Sheriff's Office for another deputy to help with traffic enforcement.

The property tax rate will remain at 4.65 mills, or $4.65 in city taxes per $1,000 of assessed, nonexempt property value. The city's property tax rate translates to about $581 in city taxes owed on a home assessed at $150,000 with a $25,000 homestead exemption. That hypothetical tax bill does not include taxes collected by Pinellas County, the School Board or other government agencies.

Tarpon Springs commissioners last week approved a $45.2-million budget for the coming fiscal year.

The property tax rate of 4.95 mills, or $4.95 in tax for every $1,000 of assessed, nonexempt property value, will stay steady from last year. For example, a resident whose home is assessed at $150,000, after the $25,000 homestead exemption, would pay about $618 in city taxes.

Many homeowners in both cities could see their property taxes go up because of rising property assessments. At a Sept. 16 meeting, the Tarpon Springs City Commission passed the budget unanimously and passed the taxrate 4-1. Commissioner Peter Dalacos voted no.

The 2004-05 budget is up 15.67 percent over last year. The cost of repaving parts of Tarpon Avenue and Pinellas Avenue accounts for much of that increase. Roughly $4.4-million has been earmarked for that project. Construction is set for late spring.