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Value gains may freeze tax rate
An almost 25 percent rise in property values will offset the increased revenue needs anticipated for the new, toll-freebridge.
By KATHY SAUNDERS
Published June 25, 2006
TREASURE ISLAND -- Higher real estate values will allow city commissioners to avoid an anticipated increase in property taxes next year. City Manager Ralph Stone said he had expected to be recommending a tax increase of one-third to one-half of a mill this year. (A mill is equal to $1 for every $1,000 of assessed property value). If the millage rate is adopted, the owner of a home valued at $400,000 would be required to pay $1,050.88 in property taxes. However, property tax bills contain other charges, including school district taxes. Stone figured the city would need the increase to make up for the $1.6-million a year loss from toll revenues now that the new, toll-free bridge is open. Stone presented the proposed 2006-07 budget to commissioners last week. Approximately $8.5-million of the $31-million budget makes up the city's general fund or major operating fund. A large part of the overall budget includes the remaining construction costs for the new bridge. The $50-million drawbridge is expected to be completed at the end of 2007. With about $400,000 remaining in the Causeway Bridge Fund, 2007 will be the first year with no toll revenue. Thanks to a 24.6 percent increase in property values, though, the city will receive an extra $880,200 to make up for the losses. In addition to the property values, the city has continued to cut services and keep department spending at a minimum, Stone said. Last year, the city cut nearly $500,000 in services, including eliminating one police officer position and funding for the annual beach Sun, Sand & Symphony celebration. This May, the city's chamber of commerce paid for the beach concert. In addition, every department has cut spending by about 5 percent. City commissioners will spend the summer discussing the proposed budget. The city's fiscal calendar begins Oct. 31. Highlights of Treasure Island's proposed 2006-07 budget: * The total budget is $31,062,370.* The proposed millage rate is 2.6272. The last time city commissioners increased property tax rates was 2001.* The general fund is $8,527,210. The general fund is the city's major operating fund. It includes money for police and fire protection, building inspections, repairs, maintenance and beautification of city buildings, equipment and land, and recreation and leisure programs. In addition, the overall management of the city, including financial and legal services, is funded through the general fund. Local property taxes make up 54 percent of the city's revenue. Franchise and utility fees, licenses and permits, charges for services and fines make up much of the remainder.* The city manager is asking for one new, full-time employee to help maintain the city's streets and property in the municipal facilities department. In addition, he wants to increase the hours of an employee in the information technology department from eight to 20 hours a week to help produce the city's cable television shows and Web site. * A 3.7 percent cost of living increase will be applied to all personnel.* The city's capital improvement funding comes primarily from Penny for Pinellas revenue and grants. The projects proposed for the next fiscal year include: A. The Treasure Bay Marina - $500,000. B. Vehicles and Equipment (including another garbage truck for automated trash pickup) - $337,570. C. Information and Technology - $256,100. D. Bascule Bridge Contingency -$250,000. E. Paradise Boulevard Intersection - $220,000. F. Gulf Boulevard and 107th Avenue Intersection and Crosswalks -$346,400. G. Beach dune walkover access -$372,000. (The proposed budget does not include the controversial beach trail extension).
[Last modified June 25, 2006, 03:20:41]
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