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Lower tax rate will bring more revenue

The budget plan would reduce tax rates slightly, but increased property values might mean more money for the Lealman fire district.

By ANNE LINDBERG
Published August 31, 2005

LEALMAN - For the second consecutive year, the Fire Commission has reduced the tax rate under a budget the group tentatively adopted Monday.

But a drop in the millage, or tax rate, does not necessarily mean property owners in the Lealman fire district will pay less in taxes. With rising property values and development in the area, a lower tax rate will actually bring in more money in the 2005-06 fiscal year than in the current tax year.

The current tax rate of 4.999 mills would drop to 4.7 mills for the coming year if the board gives its final approval. A mill is $1 of tax for every $1,000 of assessed property value.

That 4.7 mills is expected to bring in $4.75-million in property taxes compared with the $4.42-million raised this year with the higher millage.

The money raised by property taxes makes up the bulk of the overall $6.1-million fire district budget.

The remainder comes from $1.03-million in county money for emergency medical services; $185,760 from Kenneth City, which contracts with Lealman for fire service; and $150,000 from the Bay Pines VA Medical Center, which also uses Lealman for fire service.

The overall $524,878 increase over the current year's budget of $5.6-million is caused by higher personnel costs and operating expenses, Lealman Commission Chairwoman Becky Harriman said.

Final approval of the budget and tax rate are scheduled for 6:30 p.m. Sept. 7 in the meeting room at Fire Station 18, 4017 56th Ave. N.

In other business, the Fire Commission unanimously voted to ask for a mediator to try to iron out issues raised by a lawsuit the group filed earlier this year against Pinellas Park and St. Petersburg.

The commission sued the two cities in May, alleging that both annexed property worth millions from the district but failed to assume primary responsibility for fire service in those areas.

State law generally requires that governmental entities try to work out their differences in mediation before lawsuits between them can go forward.

Fire Chief Rick Graham also said the plans for the new fire station that will be built on 54th Avenue N have been approved by the county. Graham said he did not yet have copies of the plans, but "if I could do a little dance for you, I'd (go) around the room."

Approval of the plans means the Lealman district can open the construction contract for bids.

[Last modified August 31, 2005, 01:22:13]