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Politics

Commission may add fees to beef up $3.5-million budget

A workshop session is scheduled for Thursday.

By SHEILA MULLANE ESTRADA, Times Correspondent
Published July 29, 2007

Despite anticipated lower property tax revenues, the city's $3.48-million proposed 2007-08 budget calls for a 10 percent increase in spending.

Commissioners took their first in-depth look at the budget Thursday as they debated departmental expenditures and possible rate increases and new fees for sewer, garbage and a variety of utilities and city services.

"This year's budget has changed markedly. The Legislature's actions on property taxes has impacted every city in Florida," said Interim City Manager Steve Cottrell.

The commission, he said, will make the final decisions on the level of spending on "mission critical vs. secondary services."

Since just how much property taxes will change in the future is still an unknown, he said the city may have to tap its reserves. He suggested several areas where the city could generate new revenues.

"Without new revenues or cuts in spending, we would have difficulty in balancing the budget," Cottrell said.

Cottrell projected the city will have about $1.1-million in reserves at the end of the fiscal year. Because of expected increases in spending over the next five years, that reserve could be completely gone by 2012 unless new revenues are found.

The commission has set its tentative property tax rate at 1.51 mills for next year, a reduction from last year and slightly below the maximum allowed under new state law.

Actual property tax revenues, as proposed in the tentative budget, will drop by about $50,000.

Among the decisions the commission faces are a possible sewer rate study that could result in higher fees, or selling the sewer system to Pinellas County, as other beach communities have done.

Fees could be raised or created for cable television, stormwater, parking meters and utilities such as electricity, water and natural gas.

"The revenue from a 10 percent public-services tax could exceed the total revenue from property taxes," Cottrell told the commission.

Spending could be cut, Cottrell said, by eliminating existing positions; reducing or dropping merit and cost-of-living increases for employees; eliminating the Shoreline, a city-published newsletter; and eliminating funding of nonprofit groups, as well as reducing beach raking.

Other possible spending reductions could include delaying capital projects, eliminating recycling and even cutting commission salaries.

The commission will discuss the budget again during a workshop session at 5 p.m. Thursday. Final approval will not occur until September.

[Last modified July 28, 2007, 20:59:31]