Council Lowering Millage Rate, Restoring Some CutsBy Carl Wagenfohr
CLEARWATER - In hindsight, the Clearwater City Council was very aggressive in May of this year during their preparation for tax cuts that were to be imposed by the state legislature. They lopped about $7.5-million off the city's planned 2007/08 budget, much of that coming from "Quality of Life" operations including Parks and Recreation, and the Clearwater Public Library. The Council's preliminary budget also withdrew funding for police presence in Clearwater's schools, reduced personnel in Neighborhood Services and Special Events, and reduced cash contributions to non-profit agencies. Reorganizing the city's Public Communications and Information Technology functions further reduced staffing needs. All told, 85 "Full Time Equivalent" (FTE) positions were planned for elimination. According to Human Resources Director Joe Roseto, all but about 20 of those jobs are already vacant courtesy of a hiring freeze the city implemented late last year. But the State's Property Tax Reduction and Reform Law proved to be far less severe than the Council had anticipated, requiring a maximum rate of 4.6826 mills versus last year's 5.2088. Tina Wilson, Clearwater's Budget Director, explained during Monday's Budget Workshop that the state-imposed maximum rate, when applied to the $11.16-billion taxable value of the city's real estate, would result in adjusted revenues of $50,147,600 in 2007/08, an amount $3-million more than the Council's preliminary budget anticipated. Despite the preliminary budget allowing the city to impose tax rate as low as 4.4000 mills, Wilson recommended adopting the state-mandated maximum of 4.6826 mills. She argued that collecting lower taxes this year would set a lower baseline for subsequent year's rate calculations; "You'll hurt yourself in future years as you go forward," Wilson said. While Wilson's recommendation gives the Council more wiggle room in future budgets, it falls short of providing taxpayers with the maximum amount of relief. To the owner of a home with a taxable value last year of $175,000, the 4.6826 millage rate would produce a city tax bill $58.44 lower than 2006/07; if the Council adopted the 4.4000 rate, that taxpayer would save an additional $43.63. The Council accepted Wilson's recommendation. "If we cut below the 4.6826 we have been set a baseline for next year that is lower, so I'm not in favor of doing that because we lose some flexibility," said Councilmember Paul Gibson, who added that he'd like to cut spending further, but put the difference in a reserve account rather than cut the tax rate. Councilmember George Cretekos, concerned about the uncertainty of future action by the legislature, agreed; "I don't want us to go too low," he said. Mayor Frank Hibbard also agreed, saying, "I think the Legislature has created a disincentive to make further reductions because it will penalize you." Having added a $3-million surplus to their preliminary budget, the Council spent the next three hours discussing how to spend it, restoring a host of items that had been cut in May:
Several issues, including the restoration of two positions in Neighborhood Services and providing School Resource Officers in Clearwater High School, Countryside High School, Oak Grove Middle School and Kennedy Middle School, will be discussed tonight when Councilmember Carlen Petersen returns from vacation. The Council will then set the preliminary millage rate. Clearwater's remaining 2007/08 budget meetings include a Council Budget Workshop on July 25th, a Public Meeting on August 13th, and Public Hearings on September 6th and 20th. |