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Property Tax Increase

Why have a property tax increase when the City of Clearwater is sitting on two funds that could make an increase unnecessary?

The first fund is called the Parking Fund. This money was collected as parking fees over several years. Currently it is at about $11 million. Until a few years ago, the Parking Fund was used to pay for the Beach Guards, the Jolley Trolley operation, and cleaning the beach. It was also used to subsidize the two parking garages in Downtown Clearwater, although most of the funds came from Clearwater Beach.

Now, we're told that we must cut back on the Beach Guards and the Jolley Trolley while the Parking Fund awaits an opportunity to pay for a parking garage on Clearwater Beach. But, wait, just a few weeks ago, the Clearwater City Council was patting itself on the back for making an agreement with a private entity to build a beachfront parking garage with no cost to the city (except for a few adjustments in the code to allow the developer to build what he wanted, plus a probable street vacation along South Gulfview.)

It should not be difficult to find enough money in the current Parking Fund to keep our Beach Guards, Jolley Trolley and beach cleanup at current standards. No tax increase needed.

Then there is the fund popularly referred to as the CRA Fund. Its official name is Tax Increment Financing fund. This money comes from part of the property tax paid by Downtown properties. It is no different from what the rest of us pay in property taxes. All of ours go into the General Fund for spending on such things as libraries, recreation centers, police and fire, etc. Not so, the CRA property taxes. These are set aside each year to be used for "redeveloping downtown Clearwater." In fact, this money which is currently around $2 million a year, has been spent for almost thirty years to "redevelop downtown."

I was here when the CRA Fund was voted into being by a Clearwater City Commission and I know there was more development and activity in Downtown then, than there is now. Millions have been poured down the rat hole of "redeveloping Downtown" since then, with negative effect.

My question is, "Why?" What is so wonderful about Downtown Clearwater that it has real estate taxes limited to its own use, while the rest of the property owners lose libraries, recreation centers, police officers, emergency personnel, etc.?

We need to ask, and keep asking our elected officials what redeveloping Downtown Clearwater is doing for the rest of us. If they have an answer to that, I've never heard it. And I've asked, more than once. The Clearwater Council has the ability to cancel the CRA (Downtown) tax increment financing fund and return the money to general fund where it belongs. Let's let them know this is what the taxpayers want!

Meantime, I see no reason to favor a tax increase while millions are sitting around in these two funds, waiting for privileged people to profit from them.

This includes the boat owners who will some day occupy the Downtown Boat Slips. Although we were promised "not one penny of general fund money will be needed for the boat slips," it is already clear that they will need to be subsidized by the general fund -- our real estate taxes.

Let your City Council Members know what you think about this. They are certainly not hearing it from the City Manager, city staff or any of the privileged downtown property owners.

- Anne Garris

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