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Letter to the editor

Beachtowns will not kill raises

Many spending cuts are planned; some raises are less than expected.

By SHEILA MULLANE ESTRADA, Times Correspondent
Published September 9, 2007

Upcoming budget hearings

Beach communities are in various stages of reviewing their 2007-08 spending plans. Some commissions have held their first hearings and now are in the final stretch of setting their property tax rates and budgets. Others have yet to present their final tax and budget proposals to the public. Here is a schedule of upcoming budget hearings (unless otherwise noted all meetings are at the respective town halls)

Decision time is quickly approaching for Pinellas County's beach communities as officials shave their budgets to meet state-mandated reductions in property tax rates.

Proposed spending cuts range from fewer paper clips because of across-the-board reductions, to less comprehensive health insurance for employees, personnel cutbacks, and fewer ambitious capital projects.

In all towns, employees will still get raises, but perhaps not as much as in the past.

The cause of all this budget angst is a new state law reducing property taxes for Florida residents. The law requires that all municipalities roll back their millage rates to last year's levels, with future growth capped at the level of personal income and population growth.

The law's complicated formula dictates that Pinellas beach communities cut property tax rates by 9 percent for the 2007-08 fiscal year.

So far, none of the beach communities opted to exceed the cap, a step permitted under the law but only through a supermajority commission vote or formal referendum.

"Our budget is lean and mean," North Redington Beach Mayor Bill Queen said.

"Small towns don't have a lot of employees and can't look to personnel costs for significant savings."

Adding to the towns' budget caution is another, possibly even larger, revenue cut that could go into effect if the state's voters approve a constitutional amendment in January calling for a new super property tax exemption.

"The cumulative effect of the property tax reform legislation will be increasingly difficult to meet without sacrificing discretionary expenses and laying off employees," Madeira Beach City Manager Jill Silverboard warned her commission.

Here is a brief review of each community's proposed tax rates and spending plans for the coming year:

St. Pete Beach

Despite the double blow of a lower property tax rate of 2.3764 mills (compared to the current 2.6 mills) and a drop in property values, the city's proposed $15.39-million budget is actually nearly $200,000 higher than the current budget. That is largely the result of growth in utility fee collections, higher parking and fire inspection fees, and a $350,000 increase in the county's contribution for city-provided emergency medical services.

The 2007-08 budget calls for the elimination of six staff positions, including the city's public information officer, a librarian, and the leisure services director. A reorganization will fold the recreation, parks and public works departments into a newly named public services department.

Most city employees, including those covered by union contracts, will received a 2.57 percent cost of living raise and an average 3.5 percent merit increase. The commission is also considering a 10 percent increase in sewer fees, as well as spending $66,000 to hire a Washington, D.C., lobbyist to help secure new federal grants for the city.

Treasure Island

Regular operating expenses are projected to drop more than $2-million to a total budget of $14.08-million, compared to this year's $16.24-million operating budget.

With construction of the causeway bridge complete, the city is planning to spend $221,330 next year for operations and some maintenance. The city spent $15.6-million this year to build the bridge.

Spending cuts were achieved by delaying or reducing capital projects, including installation of crosswalks on Gulf Boulevard, reducing staff through attrition, eliminating some recreation activities, including the Rock Around the Clock downtown street party, and across-the-board cuts from paper clips to gasoline. City employees will receive a 3 percent cost of living increase, but will see lesser health and other insurance benefits. No department head, except the city clerk, is slated to get a raise.

Madeira Beach

Property taxes here are slated to drop from the present 1.9 mills to 1.7954 mills, while spending was slashed $3.19-million, Cuts ranged from changes to the Madeira Way Streetscape Project, a 12 percent reduction in operational spending, and a halt to most capital projects. One thing that was not eliminated, however, was the annual fireworks display on the Fourth of July.

The budget also calls for some staff cuts, but grants nonfire employees a 4 percent cost of living increase. Firefighters under union contract will receive a 2.5 pay plan adjustment plus a 3 percent step increase.

The city is increasing marina and recreation program fees to ensure the programs are financially self-sustaining. Sewer fees are not slated to change, however.

Redington Beach

While cutting its property tax from 2.10 mills to 1.9410 mills, the commission is actually increasing spending, thanks to higher revenues from fees and transfers from other accounts. The total 2007-08 budget of $3,420,984 represents a 26.4 percent increase in expenditures over the current year's spending.

Most of the increased spending will be used for capital projects including stormwater improvements, seawall repairs and street repaving and repairs. Spending cuts were generally across the board. Employees will receive a 3 percent cost of living increase.

North Redington Beach

Commissioners cut spending by eliminating the annual fireworks display, virtually all commission travel and sharply reducing spending on parks and recreation.

A $150,000 state grant will enable the town to plant palm trees along Gulf Boulevard, as previously planned. The town's four employees will receive merit pay increases ranging from 3 to 5 percent.

The resulting $803,000 budget will be funded by a 0.7511 millage rate - still the lowest in the county with the exception of tiny Belleair Shore.

Redington Shores

The town's proposed 1.5229 property tax rate, which reflects the state-mandated 9 percent reduction from the current 1.6800 tax rate, forced the town to cut operational spending by more than $400,000.

Except for the elimination of the Fourth of July fireworks, no major programs or services were cut. Rather, the $2.16-million operating budget is the result of "line by line" cutting, according to town officials. Employees, however, will still get a 4 percent cost of living raise.

Indian Shores

The mandated cut in property tax rates in this community is compounded by a 2.5 percent drop in actual property values. This represents a net loss of more than $125,000 in property tax revenues.

Nonetheless, the town is planning to give its employees an average 3 percent merit increase. This cost is partially offset by other revenue increases, including: contract policing fees from Redington Shores, which will generate $377,532, more than a 10 percent increase over the current year; as well as increased fees for parking.

Indian Rocks Beach

After lengthy budget workshops and a public hearing, a number of potentially divisive budget issues remain unresolved. So far, the property tax rate dropped from the present 1.5467 mills to 1.4695 mills.

The total proposed $7-million budget, however, is 16.1 percent higher than the current budget - largely due to a proposed interfund loan of Penny for Pinellas funds to pay for improvements to the sewer system. Without the loan, the proposed sewer project could force a sewer rate increase for residents.

Commissioners recently eliminated one of two deputies, but are considering hiring a community policing officer who would provide roving, part-time patrol coverage. Other cuts include a reduction from 3 percent to 2.5 percent for employee cost of living raises, a $25,000 cut in the city's contribution to the Beach Art Center, and continuing delay of a proposed library study. Further cuts still under consideration include $30,000 for a Gulf Boulevard beautification study, and $10,000 for live televising commission meetings.

Belleair Beach

More than $80,000 in cuts for street resurfacing projects, elimination of the Town Council's membership in the local chamber of commerce, and postponement of a walkway at Baldwin Park are among the spending reductions needed to balance the city's $2.5-million budget. The biggest cut, however, came as a result of a decision earlier this year to disband the city Police Department. Contracting with the Sheriff's Office is saving the city more than $200,000. The cuts were needed after the council opted to exceed state mandated property tax cuts. The new ad valorem tax rate is 1.98 mills, compared to the present rate of 2.31 mills. This reduction represents a 13.38 percent decrease in property taxes. Employees will receive a 2.7 percent cost of living increase and a 2 percent merit pay increase. Still undecided is whether to accept a pending Southwest Florida Water Management District stormwater project grant, which would require the city to come up with some $250,000 in matching funds.

Belleair Shore

Technically, this town of only 55 homes will see an increase in its tax rate from the current 0.5164 mills to a new rate of 0.5256 mills. The town is still in compliance with the new state property tax laws, however, because its total valuation dropped enough to offset the slight tax rate hike. The town's $89,400 budget is actually $200 less than the current year's spending plan. The town has only one part-time employee, who will receive a 6 percent pay hike. The remainder of the town's projected revenues will be used to improve beach access points, install slow speed buoys, and pay for consultants assisting in updating the town's comprehensive plan.

NOTE: One mill property tax rate translates to $1 in taxes for every $1,000 of taxable property value. For example, a home valued at $200,000 after homestead exemptions would be billed $200 for each mill levied in taxes.

[Last modified September 8, 2007, 22:15:06]