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Politics

City balks at deep tax cuts

Largo commissioners use a little-known provision in the state tax law to ease budget cuts.

By LORRI HELFAND
Published July 25, 2007

LARGO - The City Commission voted Tuesday night to override a state law mandating property tax cuts next year, making it one of just a handful of Florida communities to do so.

Using a little-known provision in the law that the Legislature approved this year, a super majority of the commissioners, 5 of 7, voted to stave off the deep cuts during a special meeting, saying they think residents wanted services more than a tax break.

City commissioners approved a maximum property tax rate lower than the current rate, but higher than state requirements that reduce city property tax collections 9 percent.

"We have a little flexibility to put back in the budget those programs that are near and dear to many of your hearts. I feel we need that flexibility," said Vice Mayor Harriet Crozier.

Commissioners voted to set the cap at $4.01 for every $1,000 of taxable value, with Commissioners Andy Guyette and Mary Gray Black opposing. That amount would be a rate reduction of about 6 percent, but because of rising assessments and other factors, the city would raise about the same amount of money it collected this year with a rate of $4.28.

The maximum rate approved Tuesday will be included in notices sent to property owners by the Pinellas County Property Appraiser's Office on Aug. 20. City leaders will have the option of keeping that rate, or reducing it when they approve the budget in September.

Most commissioners said they still intend to reduce the tax rate more, but they wanted leeway to salvage important programs.

Had commissioners followed the state mandate, the property tax rate would have dropped to about $3.65 for every $1,000 of taxable value and resulted in a loss of about $2.8-million in operating funds.

City staff told commissioners that drop in funding would require several cuts, including closing the library on Sundays, closing two nature parks during the week, closing outreach programs for at-risk kids and not funding events such as the city's Fourth of July fireworks celebration.

The tax rate approved Tuesday night would bring in about $1.2-million more than the state mandated rate.

"I'd like to see us end up somewhere in the middle," said Mayor Pat Gerard.

Commissioner Rodney Woods said he would end up supporting a rate closer to the mandated rate when the budget is adopted.

Six residents spoke about the tax rate at the meeting. Two urged city leaders to stick with state mandates. Two pleaded with city leaders to keep nature parks open. And two asked them to seek a compromise.

The new state law requires local governments to collect less property taxes in 2007-08 than they did this year. In Largo's case, the requirement was 9 percent less. But the law also allows local governments to opt out of additional cuts.

With a super majority vote -five out of seven commissioners in Largo's case - property tax rates for the upcoming fiscal year can be set to bring in the same amount of money as the current year.

Largo is not alone in its decision to do that. Sarasota and Lakeland city leaders also approved maximum property tax rates above those set by state property tax legislation. Polk City unanimously voted not to roll back rates at all.

[Last modified July 25, 2007, 08:06:53]