Print

Email story

Comment

Letter to the editor

City weighs public spending priorities

Expecting an $8-million hit, officials will seek input from focus groups before cutting services.

By Lorrie Helfand, Times Staff Writer
Published February 24, 2008

City leaders are bracing for long-range cuts in the wake of new property tax legislation.

At last week's City Commission meeting, Largo staff predicted a budget shortfall of $8-million over the next five years.

As a result, budget cuts next year could range from $2-million to $3-million - or more.

"It's really too early to determine what the actual impact will be," said Jonathan Evans, assistant to the city manager.

The city is waiting for firm figures from the Pinellas County Property Appraisers Office in May about whether the real estate downturn has caused property values to fall, and by how much. Then there's the possibility of additional revenue reductions proposed by state legislators, he said.

Property tax revenue for the 2008-09 fiscal year is expected to be $14.68-million, which is $2-million less than this year and $274,000 less than 2006.

"This will not be a onetime shot," said Commissioner Harriet Crozier "It's going to go on for several more years."

Estimates take into account legislation adopted last year that restricts future property tax revenue increases and passage of Amendment 1 on Jan. 29.

The approval of Amendment 1 means 2008 property tax bills will include an additional $25,000 homestead exemption on local government taxes, but not school taxes. That is expected to save the average homeowner $240 this year.

But Largo's staff has not been able to gauge the ramifications of portability, another element of Amendment 1. It allows homeowners to take the tax savings they enjoy under the Save Our Homes cap on assessments to a new home. Benefits vary, depending on how the new home's value compares to the old one.

"There's no way to project how many people are going to move and what value home they're going to move into," said Amy Davis, assistant to the city manager.

Property taxes make up a lot of the revenue that goes into the city's general fund, which pays for services such as police, fire and recreation.

The city is exploring ways to combat budget shortfalls, such as increasing user fees and improving efficiency. But officials also expect to reduce or cut some city services.

So Assistant City Manager Henry Schubert suggested asking residents what services they think are most important before staff began detailed work on the budget.

"It seems to make sense that we should ask them what their opinions are," Schubert said.

For the first time, the city is holding a series of four budget focus groups to determine the most palatable reductions for residents. Staff invited about 80 active city residents who serve on city advisory boards or have attended the city's Citizen Academy program to participate in those groups.

On March 3, information gleaned from those four focus groups will be presented at a community workshop at Largo Public Library.

If you go

Want to share your ideas about city spending? A community budget focus group will be held from 6 to 9 p.m. on March 3 in the Jenkins Wing of the Largo Public Library, 120 Central Park Drive.

[Last modified February 23, 2008, 21:19:42]