County tax rate cut on hold

County commissioners hold off on lowering the tax rate, opting instead to tentatively set it at last year's level with the possibility of reducing it later.

By JEFFREY S. SOLOCHEK

© St. Petersburg Times, published July 12, 2000

BROOKSVILLE -- At the recommendation of its staff, Hernando County commissioners hedged Tuesday on their pledge to trim next year's property tax rate.

Instead, they set a tentative rate of $8.5704 for every $1,000 of assessed property value -- the same level as last year -- with the professed intent of cutting that rate by 25 cents after reviewing the administration's budget proposal.

"Out of prudence our recommendation is that you adopt the current rate," County Administrator Paul McIntosh told the commission. "We are certain, relatively certain, that you will be able to reduce it."

State law says that once commissioners approve a tax rate, it may not be increased later in the budget process without going through a complicated process. It can, however, easily be reduced.

He suggested the commissioners leave themselves some leeway in case they hear program ideas they like that did not make it into his budget. For instance, McIntosh noted, department heads asked for 13 new positions, while he included only 4.5 new job slots in his plan.

Projections of state-generated income remain hazy as well, but they should clear up before the commission must adopt its final tax rate and spending plan, Budget Officer George Zoettlein said. He asked the commissioners to leave wiggle room in the tax rate.

"You need to have the flexibility, just in case," McIntosh said.

The commission's two Republicans -- both of whom are seeking re-election -- would hear nothing of the sort.

Commissioner Bobbi Mills equated such an idea with leaving a kid in a candy store with a handful of coins. If the commission leaves the tax rate stable, and property values rise by the usual 3 percent, she said, the county would have lots of extra money. What department head wouldn't rush to try to spend it, she wondered.

"As commissioners we all agreed that, yes, we would like to cut the budget by 0.25 mills, and that was our aim," Mills said.

Chairman Paul Sullivan argued that because the administration already had prepared a budget with the tax rate reduction in place, the commission should stick to its promise and not open itself to a public relations nightmare.

He noted that the previous administration, citing conservatism, grossly underestimated revenue and overestimated expenses last year, leaving the commission in the uncomfortable position of having to spend more than $2-million in "found" money. Sullivan said he preferred to save than spend this year.

The board's three Democrats heeded the administrator's warnings and carried the motion to set the tentative tax rate at the current level.

"I think it's too early to make it firm," Commissioner Nancy Robinson said. "We don't have all the information we need."

The commission received McIntosh's budget proposal late Monday. In it, he noted that the overall budget would increase 2.8 percent after the tax rate cut, reflecting the county's "healthy" financial climate. At the same time, McIntosh said, the consumer price index rose 3.3 percent in Hernando County, and the population increased 3.4 percent.

Additional demands for resources and requests for some new services have as a result not been met, McIntosh wrote in his budget message.

"While there are several areas where, in my opinion, we can improve on cost effectiveness, this should not be viewed as a panacea for the impacts unbridled growth will have on Hernando County government over time," McIntosh wrote. "So, while we can sustain service levels with the budget we have recommended, the growth in demand for those services will soon require significant expansion of county resources."

The $184-million proposed budget includes money to continue the county residential road repaving program, consolidate the county's fire and rescue services, improve the county's Internet and government access cable television capabilities, and give raises of up to 5 percent to county employees.

Ideas floated early in the process that were deleted include a 50-bed expansion at the county jail, a parks maintenance building, a new emergency operations center and design and preliminary construction of a community swimming pool.

Commissioners have set budget workshops for 2 p.m. July 20, 2 p.m. July 24 and 1 p.m. July 26 to review the document in more detail. The first budget public hearing is scheduled for 5 p.m. Sept. 7.

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