Northpinellas: Tarpon tax rate may stay the same

After two years of cutting the tax rate, officials are looking at maintaining it at about 4.95 mills, or $4.95 in tax for every $1,000 of assessed, non-exempt property value.

For someone who had a home assessed at $125,000 and received a $25,000 homestead exemption, that would translate into a city tax bill of $494.54 next year. That hypothetical tax bill does not include taxes levied by Pinellas County, the School Board, the Southwest Florida Water Management District or other governmental agencies.

With consumer prices nationwide rising at an annual rate of about 4 percent, City Manager Ellen Posivach said she thinks the city would do well next year to keep the same tax rate.

"I view it as a sign . . . that our directors have done an excellent job running their departments in a cost-conscious manner," she said.

Under state law, the city would have to advertise a proposed 6.4 percent property tax increase even though it would be keeping the same tax rate. That's because the overall value of property in Tarpon Springs has grown.

Citywide, the assessed value of property rose 8.1 percent last year. About a third of that growth came as a result of voluntary annexations, many north of the Anclote River, and new construction.

As a result of the growth in assessments citywide, the same property tax rate would generate slightly more revenue. To generate the same amount of property tax revenue as this year, the city would have to roll back next year's tax rate to just below 4.65 mills.

Posivach said city officials would like to deliver a third consecutive decrease in the property tax rate, but need to maintain the same rate just to keep up with inflation. Going to the rollback rate would reduce revenue to the city's general fund by about 2.2 percent.

"You've got to have some way to offset (increases in) basic costs," Posivach said.

The city's $13.2-million general fund is just one piece of the overall city budget, which would total nearly $30.8-million. The city budget also includes enterprise funds, which encompass the sanitation, water and sewer departments, as well as revenue from grants, interest and other sources.

The city has not made recommendations yet on water and sewer rates. A rate study is under way, but Posivach said the report is not finished. She said she assumes that the report could recommend a decrease in water rates and an increase in sewer rates.

One of the study's early indications is that if the city had addressed its sewer rates in 1994, as recommend by consultants then, it would be in better shape now, Posivach said.

A public hearing on water and sewer rates is scheduled for 6:30 p.m. July 18.

The city's proposed capital projects budget, which gets money from sources such as the Penny for Pinellas sales tax and transportation impact fees, includes the Disston Avenue extension, acquisition of land near Castle Terrace and Seminole Boulevard to provide drainage for future paving projects in that area, $200,000 for repaving, $100,000 for sidewalks, and $25,000 for continuing work on the Spring Bayou sea wall.

Commissioners are scheduled to discuss the capital improvements budget July 17 and could accelerate or delay projects.

"Obviously, if we move some up, we'll have to move some down," Posivach told city commissioners this week.

The City Commission is scheduled to consider setting the proposed millage rate at its 6:30 p.m. meeting Tuesday. Officials have scheduled a budget workshop for 6:30 p.m. July 30 in the second floor conference room at City Hall.

Public hearings on the budget are tentatively scheduled for 6:30 p.m. Aug. 20 and 27 in the commission's chambers at City Hall. The city's next fiscal year starts Oct. 1 and ends Sept. 30, 2002.

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