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Officials against a tax hike

After approving $180-million in capital improvements, commissioners say they just don't want to seek tax increases to fill emergency reserves.

By LORRI HELFAND
Published April 19, 2006

LARGO - City administrators want to gradually increase the property tax rate over the next six years to boost Largo's reserve coffers and pay for rising operating expenses.

But City Commissioners are squeamish about the idea, which they have discussed over the past two weeks during presentations of long-term projects in the Capital Improvements Program, which totals about $180-million. The commission unanimously approved the CIP at Tuesday night's meeting.

Several commissioners voiced concerns about the possible tax increases at the workshops, and Commissioner Rodney Woods reiterated his feelings Tuesday.

"I'm confident that I won't be voting for a tax increase next year," Woods said.

Last week, City Manager Steve Stanton said he hoped to increase emergency reserves to at least $3-million. The city has $1-million for emergency funds.

"While FEMA will provide federal assistance, it takes three to seven days to do that and in a post 911 era I just don't think a million-dollar contingency is responsible now," Stanton said.

City staff's projection included an incremental millage rate increase that would raise taxes from the current rate of $4.28 for every $1,000 of taxable value to $5.75 for every $1,000 of taxable value. Under the current rate, an owner of a home assessed at $100,000 with a $25,000 homestead exemption would would pay $320.69 in property taxes. The increase would call for the same homeowner to pay about $431 by 2012.

The CIP is a host of proposed projects over the next six years and also includes financial projections, maintenance projects and equipment purchases. The feedback from commissioners will guide city staff as it prepares the budget over the next few months.

Several commissioners liked the idea of boosting contingency funds, but don't want to raise taxes to do it.

"I certainly don't want to raise the tax rate ... in order to create a contingency fund," Mayor Pat Gerard said last week, adding that the thought gave her "heartburn."

Management Services director Kimball Adams said emergency funds were calculated as a small part of the increase and that taxes might need to be raised primarily to cover additional services and mounting expenses, such as employee salary and benefits costs.

"A lot of our revenues are not growing as fast as some of the expenses," Adams said.

In 2007, all additional funds brought in by a tax increase would be allocated to the surplus, according to Adams projection. During a six-year period, just 19 percent of additional revenue brought in by increased taxes would go toward the surplus.

Commissioner Andy Guyette said he supported an increased contingency fund, noting Adams' contention that the surplus was a minor factor in his tax projections.

"Remember Austin Powers when he's holding the city ransom for a million dollars? That doesn't cut it anymore," Guyette told his fellow commissioners.

Key CIP projects included a $23.9-million for the redesign and rebuilding of the Highland Complex recreation center and a $2-million renovation and minor expansion of Southwest Recreation Center. Another project, renovating and redesigning the former library, would cost about $2.3-million so the city could house a community arts center and relocate Community Center programs there.

The CIP also included a new computer-aided dispatch and records management system and mobile computer system for the Largo Police Department. Commissioners approved the purchase of that system Tuesday from SunGard HTE, Inc and other vendors at a cost not to exceed $3.2-million.

Lorri Helfand can be reached at 445-4155 or at lorri@sptimes.com

[Last modified April 19, 2006, 01:58:13]