Tax rates, savings are moving targets

By BARBARA BEHRENDT, Times Staff Writer
Published August 19, 2007

BROOKSVILLE - Hernando County property owners are about to find out how much money they might save with the property tax reductions mandated this year by the Florida Legislature.

Truth in Millage, or TRIM, notices from the Property Appraiser's Office were mailed Friday and should arrive in mailboxes by early this week.

One large chunk of the notice reflects what local homeowners and businesses could pay to support county government services, ranging from law enforcement to road resurfacing.

It is the portion that has generated the most debate.

Hernando County commissioners have set a maximum tax rate more than 1 mill below last year, a move that will result in nearly a $9-million reduction in property tax revenue see below.

A mill is $1 in tax for every $1,000 in appraised taxable property value. A 1-mill cut would mean that the owner of a $125,000 home with the $25,000 homestead exemption would see $100 savings in their tax bill to support county services.

The notice also includes proposed tax rates for other governmental bodies, including the Hernando County School Board, which is not facing the same state-imposed revenue-cutting consequences. Therefore, a cut in the county's portion of the bill might not mean an overall reduction in some property owners' tax bills.

Changes in property values from one year to the next also have an impact on the total bill.

The TRIM notices are a prelude to public hearings that all taxing bodies will be conducting during the coming weeks. Officials can lower proposed tax rates after those hearings but cannot raise them. Actual tax bills will go out early this fall.

While Hernando County officials say they are pleased by what they have been able to slice from their budget, some taxpayers have pushed for deeper cuts. At a recent meeting, several commissioners said they too were looking at ways to trim fat.

Since that meeting, what those trims might be has been discussed only behind closed doors between the County Administrator Gary Kuhl and commissioners. The commission's next scheduled public discussion on the topic comes at 5 p.m. Sept. 13, the date of the first of two required public budget hearings.

Kuhl has also assembled several gatherings of county staffers, business representatives and others in the community to talk about budget issues.

Outside the county government center, the budget debate took a lively turn several weeks ago when local business interests drafted businessman and home builder Blaise Ingoglia to make presentations titled "Government Gone Wild."

His first installment of that presentation was a toned-down version called "An Evening of Change." The presentation, made to builders, Realtors and businesspeople on Aug. 10, was a litany of figures projecting a questionable shadow on county government's fiscal choices.

Some of the facts and figures quoted by Ingoglia were incorrect or incomplete, and Ingoglia vowed to make changes before resident seminars started Friday.

Commissioner Rose Rocco said she could see some value from the community discussion, but only if it was factual.

"If the information is correct and reasonable, then I think it's a good thing," Rocco said. "If it's not, then it's going to create a lot of dissension in the community and a lot of misinformation."

She said the critical issue is to be sure all sides are told.

Commissioner Diane Rowden said she was confused that some of the people behind Ingoglia's program had, in the past, urged the commission to keep the tax rate stable, in order to make community improvements.

"Something has gone totally haywire," Rowden said. "They're giving misinformation. It's sensationalism. They're trying to make us look like a bunch of crooks out here, and that's not the truth."

Commission Chairman Jeff Stabins said he wasn't interested in the "Government Gone Wild" phenomenon.

Stabins urged fellow commissioners at the last public budget meeting to make the most of the several weeks between public budget discussions to let Kuhl know where they would like to see more emphasis on cutting.

The commission's earlier discussions have had an impact on the county's spending plan.

When commissioners voiced concerns that the county staff was proposing to eliminate the county program to demolish derelict structures, that program was restored to the budget.

When the county lost an Animal Services worker and no replacement was allowed, commissioners said they didn't want to see a delay in response time to animal complaints.

County staffers found a way to shuffle employees from the Solid Waste Department and Code Enforcement to fill the job at Animal Services.

Pay raises, which have been higher, were held to 2 percent for cost of living, with the possibility of an added 1 percent for merit, to meet the state mandates for reducing property tax revenue.

Kuhl said he knows that some residents are urging commissioners to cut deeper, trimming another $9-million to $10-million before the tax rate is set.

Commissioner Dave Russell acknowledged that people are following the commission's actions and said he wants to see more reductions than those suggested by the staff.

"I don't think that personally we have gone far enough at this point," he said.

Streamlining operations, combining departments and continuing to use attrition to cut back staffing are possibilities being mentioned by commissioners.

"We're discovering areas where we can cut back and not cause any loss of services," Russell said.

Commissioners and county staffers say they are trying to shrink government while avoiding layoffs, if possible. But some in the Development Department have lost their jobs as building has slowed.

With the possibility that a "super" homestead exemption will be approved by voters in January, county officials say they know that even deeper cuts will be needed in the 2008-09 budget.

"I look upon the budget as a multiyear process," Stabins said.

He said he was pleased that the commission has been lowering the tax rate and called this year's trim "a record tax cut."

Still, he said he had an open mind if additional ways to reduce spending can be found before the final budget hearing on Sept. 27.

In preparation for what the county might face next year, Stabins has been studying the county's public transportation system, THE Bus, for possible changes.

He also wants more focus on the county's Public Works and Fleet Management departments; other commissioners are examining the judicial system and the jail.

"We've really got to get a handle on that whole system," Stabins said of the jail costs. "That's what's really eating up most of the new dollars."

For Rocco, a key area of further study is to find a way for all local governments to seek ways to work together and save money.

"That's a good idea for all of us to work together," she said. "That way we all benefit."

Barbara Behrendt can be reached at behrendt@sptimes.com or (352) 848-1434.

[Last modified August 18, 2007, 20:40:17]