Tax ax could ease its edge
By MIKE DONILA
Published June 13, 2007
A state proposal to roll back property taxes might not hurt Clearwater as much as leaders initially feared.
For now, anyway.
Clearwater has braced itself for a $12-million hit in 2007-08 and even targeted $7.5-million in jobs, services and facilities for the chopping block.
But under a state plan lawmakers are discussing this week, the city would face property tax cuts of just $3.7-million next year - though it will be roughly $6-million less than the city might have collected under current law due to increases in property values.
Still looming, though, is the new "super" homestead exemption that - if approved by the Legislature and voters - would force further tax breaks. That part of the equation, however, wouldn't take effect this year.
Until lawmakers officially act, city leaders say they're still preparing a proposed budget that reflects the initially-discussed $7.5-million in reductions. But they'll revisit proposed controversial cuts like the Morningside Recreation Center, the beach recreation center and the beach library.
"When we made those decisions we said that nothing was set in stone, " Mayor Frank Hibbard said. "But they were things we had to consider and we thought we'd even have to do more than what we're obviously faced with right now.
But Hibbard warned that with the "super" homestead exemption looming, it may be just a temporary reprieve.
City leaders are expected to talk about the cuts on Monday.
"Everything is still a moving target and things are in flux . . . but we'll adjust, " City Manager Bill Horne said. "We'll factor in what the state Legislature does and what the council does, so the budget you see in September will be much different from the (late June) preliminary budget."
As it stands, Clearwater is prepared to close the two recreation centers, the beach library branch and slash library operating hours across the city.
In addition, leaders set their sights on more than 90 jobs, funding for the Jolley Trolley beach transportation service and special events, and a number of nonprofit organizations.
The Florida Legislature today continues debate on its two-part plan to lower property taxes.
One part forces local governments to roll back their tax rates.
The other part creates a new homestead exemption that would need voter approval, and would essentially eliminate the Save Our Homes 3 percent cap in exchange for a super exemption that would eliminate taxes on 75-percent of the first $200, 000 of a home's value and a 15-percent exemption on any value above that.
The tax rollback is easier to enact because it requires only a straight majority vote of the Legislature before heading to the governor.
If approved, nearly every Florida city and county government would be forced to cut property taxes in 2007-08 below this year's taxes. How deep those cuts go would be based on how much those governments' tax collections grew in the preceding five years.
Clearwater, under the legislative proposal, would be forced to cut 7 percent, or about $3.7-million, compared to this year's property tax collections.
Compared to what the city might have collected in 2007-08 due to an increase in property values, the city is losing another $2.3-million.
And they still face the uncertainty of deeper cuts should lawmakers place the super homestead exemption on the ballot for January or later.
Among the cuts when Clearwater was contemplating $12-million in reductions: taking police officers out of the two high school, eliminating a firefighting rescue squad and cutting millions in infrastructure plans.
That potential is prompting Clearwater Fire Chief Jamie Geer to travel to Tallahassee today, joining other fire officials, to lobby against cuts they believe will reduce response times and public safety.
BY THE NUMBERS
Clearwater property taxes
$53.3M Property tax collections this year
$55.6M Collections next year if no changes to law
$49.6M Collections next year under Legislature's proposal
Fast Facts:
Budget-writing time line
This week: Florida Legislature began two-week special session.
June 30: City administration gives the council a proposed annual spending plan.
July 16: First budget workshop for the council.
July 19: Council sets 2007-08 millage rate.
July 25: Second Council budget workshop.
Aug. 13: Public hearing on the budget.
Sept. 6: Council's first formal consideration of final budget.
Sept. 20: Council votes on budget.
Oct. 1: Fiscal year 2007-08 begins.