Print

Email story

Comment

Email editor

Temple Terrace

City's tax rate holds steady for 7th year

Though come expenses were up, the contribution to a pension fund dropped, helping the city hold the line on taxes.

By JOSH ZIMMER
Published August 19, 2005

TEMPLE TERRACE - City Finance Director Lee Huffstuttler feels lucky.

The City Council told him not to include a tax increase in next year's proposed budget. The problem was Huffstuttler thought the city needed a small increase last year but was turned down. Going into the 2006 budget season, all he saw was more of the same - higher costs for salaries and services.

Then the city's contribution to the public safety pension fund dropped by a half-million dollars. The dark clouds suddenly lifted.

"That, for lack of a better word, saved me," he said.

Huffstuttler recently introduced a $20.9-million budget, an $845,000 increase over the current year's budget. But it accomplishes his task: The proposal maintains Temple Terrace's current millage rate of 4.91 for the seventh straight year.

A mill represents one tax dollar per every $1,000 of assessed property valuation. At that rate, the owner of a $150,000 home who takes a standard $25,000 homestead exemption would pay $614 in city taxes.

In addition to the surprise break on pension contributions, the city will benefit from an 8 percent increase in property values. The proposed budget also foresees a 28 percent jump in rental collections from city-owned properties off N 56th Street, site of Temple Terrace's proposed redevelopment project.

The plan, which must be approved by Sept. 30, still finds money for four new police officers, along with some new city clerk and library staff.

"I'm not in favor of raising taxes," City Council member Frank Chillura said. "That has to be an absolute last resort."

Insurance costs continue to rise, Huffstuttler said. The city also is absorbing large raises awarded to police officers last year, and a nearly $200,000 jump in debt service payments related to improvements at the city's recreation center and land purchases at the redevelopment site.

On the upside, the projected 12 percent increase for health, property casualty and workers compensation insurance is relatively modest compared to prior years, he said.

The health of the economy will be a key factor in the city's financial picture, he said. It helps determine what people spend on local housing and businesses.

"I think the economy is pretty good," he said. "I'm hopeful it will continue."

Josh Zimmer can be reached at 269-5314 or zimmer@sptimes.com

[Last modified August 18, 2005, 11:46:08]