Cities, disclose where tax rebates are going

For the second year in a row, Pasco commissioners are wondering where the money goes. Not their money. Not any longer, anyway. The cash in question is the property tax rebated to four Pasco cities involved in community redevelopment. Last week, county commissioners approved cutting checks to New Port Richey, Port Richey, Zephyrhills and Dade City totaling more than $3.5-million.

Most of the money is headed to New Port Richey and Port Richey, both of which declared the entire cities blighted. This year, New Port Richey is to receive just under $2.4-million and Port Richey, $956,000. Dade City and Zephyrhills receive substantially less because they limited the redevelopment to portions of their downtown cores.

Under state law, county tax dollars attributed to growth in the cities' tax bases are returned to those governments to pay for redevelopment. Dubbed tax-increment financing, the amount grows as the taxable value within the designated redevelopment zones increases.

But, also under state law, the cities' community redevelopment agencies are required to provide an accounting of the money to each taxing authority that contributes.

In other words, the cities have to tell the county how they are spending the money that otherwise would have been available to Pasco commissioners to fund government services or reduce the property tax rate countywide.

Last week, the county staff said that only Zephyrhills had complied. Figures. The city taking the fewest dollars provides the most accountability. It was the same situation in 2006.

Zephyrhills is to receive less than $84,000, money that it is bankrolling to help pay for downtown facade improvements. But, on its redevelopment front, city officials are meeting today to gather more information about the former Wachovia Bank building at 38421 Fifth Ave.

The city is contemplating buying the two-story building and possibly converting it into a new City Hall or library. Part of the due diligence includes ascertaining whether the second story of the building is sturdy enough to hold the weight of shelved books.

Note to Port Richey: This is the way to do it. Decide how to use property before acquiring it. It's a preferred alternative to the let's-buy-it-and-we'll-figure-something-out-later approach that the city is taking with the Port Richey Mobile Home Park.

The latest county check will push CRA funding to Port Richey to more than $3-million. The city tax base more than doubled in value since its blighted designation five years ago. The recent decision to buy the mobile home park and the endless application for permits to dredge residential canals are the most tangible evidence of the city's pursuing redevelopment.

New Port Richey can at least point to a litany of ideas and a few completed projects for the $8.6-million its received. The city uses some CRA dollars for personnel costs and borrowed against future revenue for the $14-million renovation of the recreation center and acquisition of property downtown for future development.

Each of the cities should welcome the scrutiny of its spending decisions because the county had no input on the front end of the creation of these redevelopment districts.

With the Legislature limiting future property tax rate increases, community redevelopment agencies shouldn't expect a free pass on accountability.

[Last modified December 9, 2007, 20:33:43]