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Letter to the editor

Commission looks to lessen tax cuts

Mayor Pat Gerard says residents want to keep programs instead of more cuts.

By LORRI HELFAND
Published July 19, 2007

LARGO - Could property owners in this mid Pinellas city not see a hefty tax break after all?

City leaders are thinking about overriding the Florida Legislature's requirement that the city reduce property tax collections 9 percent to save popular programs and services.

The proposal - offered as an option Tuesday night by Assistant City Manager Henry Schubert - would require five out of the commission's seven members to approve a maximum property tax rate that raises the same amount of money as the city collected this year.

Several commissioners said they'll likely vote for the plan at a special meeting next Tuesday.

"People are starting to call us like crazy about school resource officers and outreach programs and everything we've talked about cutting," Mayor Pat Gerard said Wednesday. "That just gives us a little extra room to maneuver."

Under the property tax overhaul the state Legislature passed earlier this year, Largo was expected to lower its property tax rate to about $3.65 for every $1,000 of taxable value.

Schubert proposed the commission instead approve a tax rate of $4.01 for every $1,000 of taxable value, which, because of rising assessments and new development, would raise about the same amount of money the city collected for 2006-07, when the tax rate was $4.28.

The maximum rate approved by commissioners will be provided to the Pinellas County Property Appraiser's Office, which will mail notices to property owners on Aug. 20.

Local governments can levy rates lower than the amount in the notices, but not higher. Largo's actual tax rate will be set in September.

If Largo commissioners choose the higher rate over the mandated cuts, city leaders will have a chance to hear from the public before committing to trims that could cut city services, Schubert said.

Some residents aren't crazy about the city's latest decision.

"I think it stinks," said resident Bryan Jenkins, fed up with years of rising taxes and fees.

About 15 people have written commissioners and others have called, trying to save workers and programs from the chopping block.

Several commissioners said setting a higher maximum rate would give them leeway to cut taxes to some degree and still save popular programs.

"I wouldn't want us to put ourselves in a bind where we could not raise it higher if we needed to," Commissioner Rodney Woods said. "I'm mindful that residents want us to keep taxes as low as possible, but residents also want good services as well."

Vice Mayor Harriet Crozier and commissioners Gigi Arntzen and Gay Gentry said they were in favor of setting a maximum rate higher than the mandated one.

"I think that was a wise recommendation," Gentry said.

Arntzen said it would give the city the option of decreasing the rate without being forced to.

"We can always lower it," Arntzen said.

But Commissioner Andy Guyette said he'd be reluctant to buck those property owners complaining of too-high taxes.

"What I'm hearing so far, is we need to make the cuts," Guyette said. "At this point, I'm ready to support the mandated rate."

The new law freezes local government property tax revenues for fiscal year 2007-2008 at the current year's level and requires additional cuts to tax revenues - an extra 9 percent in Largo's case. But the law also allows local governments to opt out of additional cuts.

With approval from two-thirds of the governing body, property tax rates for the upcoming fiscal year can be set to bring in the same amount of money as the current year.

Fast Facts:

IF YOU GO

Special meeting

The Largo City Commission will hold a special meeting to set the maximum property tax rate at 6 p.m. Tuesday, City Hall, 201 Highland Ave. Public comment will be taken.

Largo property tax rates

Current rate: $4.28 for every $1,000 of taxable value.

Staff proposed rate: $4.01 for every $1,000 of taxable value. It would bring in about $17.9-million in tax revenues.

Legislature's mandated rate: $3.65 for every $1,000 of taxable value. It would bring in $16.3-million in revenues.

Under the staff plan, a person whose home is assessed at $175,000, minus the standard $25,000 homestead exemption, would pay about $602 in city taxes. Under the Legislature's mandate, that same homeowner would pay about $548.

[Last modified July 18, 2007, 22:16:00]