Print

Email story

Comment

Email editor

Millage may head down to 5.25

The final rate will be set by the council after a public hearing Thursday at City Hall.

By MIKE DONILA
Published September 20, 2006

CLEARWATER - City leaders are set to lower taxes a little more.

The City Council on Thursday will hold its final public hearing to discuss how the city will spend money for fiscal year 2006-07, which begins Oct. 1.

Initially, the millage rate was lowered from 5.75 to 5.42. That, however, wasn't good enough for many of the residents who complained about high rates at marathon council meetings.

The council is now ready to lower it to 5.25, a half mill decrease from the current year's millage rate.

The average Clearwater home has a taxable value of $143,000 (including a $25,000 homestead exemption and a 3 percent increase in the home's assessment). That homeowner currently pays $822.68 in city taxes. Under the proposed half mill reduction that homeowner would pay $751.18 in city taxes, a $71.50 savings.

"We've tried to be responsive to the pressures that all the citizens are feeling, from homeowners insurance to fuel costs," Mayor Frank Hibbard said. "People are beginning to get hit and I think we are trying to be responsive."

Hibbard says he doesn't expect the rate to be cut further than half a mill. He reiterated that the council will hold public meetings soon to discuss what services, if any, should be cut to continue to hold down taxes.

To make the additional proposed cuts for this year, the city had to reduce spending by $1.7-million, said budget director Tina Wilson.

Clearwater is now expected to:

- Use $400,000 in Penny for Pinellas funding to pay for the sailing center expansion project, rather than take the money from the general fund.

- Impose a 1 percent salary savings on all departments, most of which can be achieved though employee attrition. This will save $500,000.

- Take $300,000 from a $17-million reserve tank to make a one-time additional contribution to Ruth Eckerd Hall, instead of using tax revenue.

- Reduce contributions from tax revenue to a street and sidewalk fund by $500,000. (This fund would still get about $3-million.)

Officials throughout the county say they've seen record numbers of people coming to budget hearings, protesting what they say are out-of-control property taxes.

And so far, the residents have been successful, as county officials, as well as some other local cities, have tweaked their budgets, looking for last-minute cuts.

The Clearwater City Council has met with the public several times, with each meeting lasting several hours. Most who spoke complained that rising property tax revenue should go to the residents.

"When we had our first budget hearing, I heard a lot of people raising really good concerns, and at that time our budget was going up about 11 percent. ... You have to ask yourself: 'Why do we need that much?' " council member Bill Jonson said. "I'm pleased that city managers were able to reduce the millage rate."

During the public hearings Clearwater residents suggested that the city cut employees and services.

As it stands, the general fund, which covers much of the day-to-day operations for the city's departments, will increase by almost 11 percent to $123.6-million for the upcoming fiscal year. Those numbers will change slightly if the millage rate changes.

The city will get $12-million in additional revenue from taxes and fees. But it will be gobbled up by jumps in fuel, utilities and insurance costs and bumps in pension contributions.

The total proposed budget, which includes self-supported enterprise funds like solid waste, water and sewer, recycling, and parking, is $399-million.

[Last modified September 20, 2006, 00:39:11]