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Proposed budget increasesutility rates

By NICOLE JOHNSON
Published July 4, 2006

Largo residents won't see an increase in their property tax rates next year, but they may have to pay more for utilities.

The city's millage rate of 4.28 will stay the same, according to the city's proposed biennial budget. But with an expected 21.6 percent increase in property value next year, that will equate to about $3.2-million in additional revenue.

Costs associated with renovations to the city's utility infrastructure, however, will trickle down to residents, causing them to pay more for trash pickup and sewage over the next two years.

The cost of trash pickup could be less if a plan to eliminate the city's recycling program is approved. About 25 percent of city residents participate in the program.

The proposed budget, released Monday, outlines city spending over the next two years.

The budget is expected to be $126.9-million for 2007, and $129.8-million for 2008, about a 2 percent increase each year.

"Just like everybody else, we're paying more for fuel, and the normal cost of business is going up," said Assistant City Manager Henry Schubert. "Plus, we're going to be doing a considerable amount of improvements to the sewer system in the next couple years."

Largo began its budget process in November. Administrators use historical trends and future projections to determine how much the budgets will be in the coming years.

The City Commission is expected to review the budget in August and hold two public hearings. The proposed plan is scheduled to be adopted in September.

The budget is broken down into three categories: operating, personnel and capital improvements.

The city's overall operating budget is estimated at $49.2-million in 2007 and $51.6-million in 2008. The city expects to spend more than $6-million of the operating budget on improving its utility system.

The Environmental Protection Agency has mandated the city make improvements to its sewage system that would prevent overflows after heavy rains. Now, $3-million of next year's proposed budget will go to maintenance of the city's sanitary sewer infrastructure and renovations to the city's water reclamation facility.

In addition, when the Department of Transportation begins road work on U.S. 19 and Ulmerton Road next year, the city will have to spend $3-million to relocate utility lines.

The personnel portion of the budget is expected to be $55.3-million next year and $57.6-million in 2008 because of the new hires and pay increases.

That's compared to $53-million in 2006.

A chunk of that is due to a proposed 4 percent pay raise for non-union city employees. Fire and union employees contracts are still under negotiation, Schubert said.

The city expects to hire for about 30 positions over the next two years, the majority of which will be in the community development department.

"There's so much development going on that we need to hire new people to process and review new development proposals and consider permits" Schubert said.

As for new building projects, the city expects to spend $15-million in 2007 and $13.3-million the following year.

Big ticket items include $2.3-million in renovations to the former library at 351 East Bay Drive. City officials want to convert the building into a new recreation facility. The current downtown community center, on Fourth Street, is set to be moved into the former library space. The building has been vacant since a new library opened last year at Central Park Drive.

Also included in the proposed budget is more than $5-million in design and renovation costs for two recreation centers.

At the Southwest Recreation complex, at Vonn and Wilcox roads, the city plans to "remove the racquetball courts and expand the building into that space," Schubert said. The expansion will cost more than $2-million over the next two years.

The Highland Avenue recreation complex is also due for some attention. The metal building, on Highland Avenue across from City Hall, was built in the 1970s. In the 2008 budget, there is $3-million set aside to begin the design process for a replacement. The money will also go to replacing the softball field at the Highland site.

The field will likely be moved to the Southwest complex, where city officials hope to build a Little League field, Schubert said.

It's still early in the budget game, but one city commissioner spoke up about the plan on Monday concerning the administration's proposal to eliminate the recycling program.

"I'm firmly in disagreement with that," said Commissioner Gay Gentry, noting she hadn't thoroughly reviewed the budget yet. "I think we need to get more people involved in the process. ... It's not that difficult to sort your newspapers and glass bottles."

[Last modified July 4, 2006, 00:46:19]