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Some city officials say the big increase can't be avoided. "It's time to bite the bullet,'' one says. The final vote is Sept. 5.
By SHEILA MULLANE ESTRADA
© St. Petersburg Times, published July 4, 2001
BELLEAIR BEACH -- The property tax rate could rise by almost one-third next year, according to the tentative millage approved Monday by the City Council.
"Yikes, that number scares the dickens out of me," said council member Tom Ferrara, the only vote against the proposed rate.
Deputy presiding officer Bert Cutler defended the 32 percent increase over the existing rate, saying the city "just can't run away from these numbers." He said Belleair Beach needed the money to:
Pay for salary increases for police (totaling $60,000) and regular employees ($100,000).
Pay for two crosswalks on Gulf Boulevard ($50,000).
Pay for initial designs for a proposed $1.8-million City Hall ($50,000).
"We have been doing fuzzy accounting things for a number of years. It's time to bite the bullet," Cutler said.
Last year, the council had difficulty preparing the city budget when it discovered that improper accounting procedures, in some cases dating back several years, made it impossible to discern how much money was in various city funds.
The city has hired an auditor to examine the city's books and spending practices for the past several years, particularly during the tenure of former Mayor Bill Atteberry, recently convicted of money laundering.
The audit is scheduled to begin this month, but may not be completed before the city votes on the new budget and millage rate.
A final decision on the 2001-02 budget is scheduled for Sept. 5.
If the tentative tax rate becomes final, the city's property tax rate would rise to 3.25 mills per $1,000 of taxable value. The current rate is 2.469 mills. The owner of a property assessed at $200,000 claiming the the standard $25,000 homestead exemption would pay $568 in taxes, compared with $432 under the current rate.
"We want to make sure we go to a rate that is way up there. But we have no preconceived notions. The finance committee will start from the basis that there will be no tax hike," said council member Larry Rudolph, whose finance committee will begin line-item deliberations at 4:10 p.m. Monday at City Hall. Subsequent committee meeting dates have not yet been announced. The full council will hold its first budget meeting Aug. 20.
Other revenue sources must be found as well, urged presiding officer Charles Pollick. "We have limited revenues and increasing expenses. We have to start looking at other income sources in our city," he said.
Pollick suggested the city might increase slip fees at the city's marina or consider allowing higher building heights for condominiums and hotels, which could add residential or tourist units to the city's tax base.
He called for residents to attend finance committee and council workshops: "We need public input. We need people to come in with answers and not just more questions."