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Tax anger shifts spending plans

The County Commission takes complaints to heart, promising a significant drop in next year's tax rate.

By WILL VAN SANT
Published September 9, 2006

CLEARWATER - The anger took Pinellas County officials by surprise.

One by one, residents bitter over rising insurance costs and property tax bills pleaded for relief.

"I don't trust you with my money," Lee Wilkerson, 48, of Indian Rocks Beach said as an overflow crowd cheered. "What you guys are cultivating is a tax revolt."

It was an unusually bruising confrontation for the Pinellas County Commission on Thursday night, and it came only two days after Commissioners Susan Latvala and Calvin Harris won easy victories Tuesday.

After nearly four hours of complaints, commissioners vowed to change course. After months preparing a county budget rife with new spending on social services, they promised the frustrated crowd a significant cut in next year's tax rate.

"We just can't keep the blinders on," Latvala said after the public had spoken. "I'm in support of making some dramatic changes."

"I think the message has been sent," Commissioner Karen Seel said. "There is going to be a reduction in the millage."

About 90 people showed up for the first of two budget hearings, and about half took turns at the microphone.

The state Constitution softens the impact of tax increases on most residential property owners. But many who spoke Thursday night owned small business or rental property that are not protected from increases in tax assessments.

Some said they are struggling to make ends meet under the rising tax burden. Others said they took out second mortgages to cover surging bills.

"You guys have to help us," said Marty Altner, 59, who has rental properties in Clearwater Beach and throughout North Pinellas. "You have to rethink this entire situation."

In the past year, Altner said, taxes on some of his rental properties have risen more than 87 percent.

Jim Crumley, 62, of Dunedin, who also owns rental properties, said his taxes went up 28 percent this year.

Moreover, those increases come on top of crushing jumps in property insurance premiums. Crumley told the board that it was time to give businesspeople some relief instead of offering a range of revamped human welfare programs.

It's unclear where the county will trim spending. But $10-million for affordable housing, $1-million for homeless programs and $2.7-million to increase monthly assistance to the indigent are all options to be cut.

Commissioner Bob Stewart was floored by the change in direction. After all, he said, members discussed the spending initiatives at length and agreed that they were needed.

"I feel like I'm driving a 16-wheeler, a Mack truck," Stewart said, "and we are being asked to turn this thing around in a cul-de-sac."

The final budget hearing is Sept. 19. The new fiscal year begins Oct. 1.

Riding a record 20.3 percent rise in property values, County Administrator Steve Spratt had proposed a $1.97-billion spending plan for 2007, up 12 percent over this year.

As part of the budget package, a small cut was proposed for the countywide tax rate: from $6.80 per $1,000 of assessed property value to $6.60.

But, as those who spoke Thursday night were happy to remind the board, the county could slash the rate to $5.72 per $1,000 and generate the same amount of revenue in 2007 as this year thanks to the rise in property values.

By Monday, commissioners are to give Spratt some direction on where and how they think cuts can be made. Some members said Thursday that taking money from the county's $130-million in reserves could play a role.

Spratt said he was ready to help the commissioners deliver the tax reduction but warned that the task would not be without consequences.

"It can't just be fun with numbers," he said, "because it affects people's lives."

[Last modified September 9, 2006, 06:43:38]