Print

Email story

Comment

Email editor

Indian Rocks Beach trims taxes

Because the city won't benefit from a leap in property values, commissioners have to make cuts before approving a budget.

By SHEILA MULLANE ESTRADA
Published September 28, 2005

INDIAN ROCKS BEACH - A last-minute, 17 percent cut in next year's property tax rates will mostly benefit property owners not claiming a homestead exemption.

Last week, the City Commission unanimously voted to slash the city's portion of property tax levies to slightly below the roll-back rate - which means actual taxes collected by the city will remain virtually unchanged next year despite a projected 23.8 percent increase in property values.

Property owners with a homestead exemption are protected against most of this increased value anyway by a state-mandated cap on property tax increases.

But property owners who can't claim the exemption and new home purchasers would have felt the full brunt of that increased valuation. Not now - at least for the city's portion of the property tax bill. The cut does not affect taxes collected by the county or the school system.

At the same time the commission sharply cut property taxes, it approved next year's budget with only a few minor tweaks.

Here are the numbers:

--2005-2006 millage rate of 1.7811, slightly less than the roll-back rate of 1.7900 mills.

--A total city budget of $6.13-million, of which general operations will cost $3.22-million.

--A $265,416 reduction in general fund reserves to pay for most of the property tax cut.

--Capital spending of $602,825 for special projects and equipment purchases.

Most of the capital spending will go to street, drainage and sewer projects, and park maintenance and enhancements.

The city's reserves were reduced from about 28 to 22.5 percent to fund the tax reduction. City officials said this still leaves plenty of money to cover hurricane or other emergencies.

The decision to cut property taxes came after a resident objected to the proposed tax rate of 2.0995 mills.

Commissioner Jeremiah Carmody called for the commission to cut city property taxes even more.

"We have a pretty good reserve. We are sitting on 28 percent (of general fund expenses). It's not our money. It's the taxpayers' money. I call it surplus or overtaxation," Carmody said.

After cutting the reserve account to fund the tax cut, the commission started to look at the rest of the budget. In the end, very few expenditures were cut.

"At some point, you have to stop," said Commissioner R.B. Johnson, who objected to going through the budget "willy-nilly," looking for items to eliminate.

"I don't know who willy-nilly is," shot back Carmody.

"I do," said Johnson.

They cut $14,100, including eliminating seven laptop computers for themselves and merit pay increases for several employees.

Carmody and three commissioners voted for the budget; only Commissioner Jim Palamara, who had called for sharp personnel cuts, did not.

[Last modified September 28, 2005, 04:41:54]