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Letter to the editor

Budget knife may pare less

Some endangered programs survive in the Clearwater city manager's budget plan.

By MIKE DONILA
Published July 5, 2007

CLEARWATER - Recreation centers, a library branch and donations to a number of organizations and programs might not get cut after all.

City Manager Bill Horne last week released his proposed budget for fiscal year 2007-08, a $390-million overall spending plan that eliminates a number of services, programs and jobs.

But Horne's plan cuts property taxes more than is required by the Florida Legislature. And that could leave room for some controversial cuts to be restored when the City Council begins budget meetings July 16 - assuming elected officials adopt a lesser tax cut or dip into the city's reserves.

"I think everything is still up for discussion, " Mayor Frank Hibbard said. "Maybe we can use (reserves) for certain things, maybe give us a chance to phase things out so there's not as much of a shock to our citizens as far as those changes."

Horne's plan reduces the city's general fund - the day-to-day operating budget - by 2 percent to $119.9-million in the fiscal year that starts Oct. 1.

The 350-page plan would cut the city's property tax millage rate by 15.5 percent, cut about 90 full-time positions and chop funding for three recreation centers and a library. However, there is a 3 to 5 percent salary increase for city employees.

How many city employees will lose their jobs is unclear. Only half of the targeted jobs are filled, and city officials say they'll try to avoid layoffs by finding new positions for those employees affected.

Property taxes pay the largest share of the general fund. More than two-thirds of the fund is spent on personnel and the police, fire and recreation departments.

The total budget - which includes self-supported enterprise funds like solid waste, water and sewer, recycling and parking - is about $390-million.

Horne said this was one of the toughest budgets he's put together since he took over as city manager in 2000, adding that he didn't believe there was anything left that wasn't essential to everyday operations.

"It was painful, " he said. "We cut deeply into the muscle of the city services that we knew our citizens have come to expect ... and those services as we know them won't be the same."

Horne proposes reducing the city's property tax millage rate by 15.5 percent from 5.2088 mills in 2007 to 4.4 in 2008.

Under the proposed rate, a resident who owns a home with an assessed value of $150, 000 and a $25, 000 homestead exemption will pay $550 in city taxes in 2008, assuming the assessed value hasn't increased. That represents a $100 savings for the homeowner over 2007.

The proposed tax cut comes as state leaders passed mandates that push local property tax collections next year below this year's levels. How deep those cuts go is based on how much the governments' tax collections grew during the preceding five years.

Clearwater has to cut 7 percent - estimated at about $3.7-million - compared with this year's property tax collections. Horne, however, has proposed cutting nearly $6-million.

Fast Facts:

Proposed cuts

The City Council will hold a work session July 16 to begin talking about budget cuts. Among the higher-profile cuts proposed by City Manager Bill Horne that are likely to be the focus of council discussion:

- Close recreation centers in Morningside and on the beach.

- Turn the North Greenwood Recreation Center over to a third party to operate.

- Close the beach library.

- Cut funding to the local homeless shelter and Ruth Eckerd Hall.

- End the Officer Friendly program that educates neighborhoods and students about safety.

- Stop paying for the Jolley Trolley beach transit system operation.

[Last modified July 4, 2007, 21:37:04]