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New Port Richey Cuts Tax Without Slashing Services

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By CHRISTIAN M. WADE, The Tampa Tribune

Published: September 5, 2007

NEW PORT RICHEY - The city council on Tuesday signed off on a $43.9 million budget for the 2007-08 fiscal year that includes a property tax reduction and no service cuts.

Next year's spending package, which goes into effect Oct. 1, includes a lower tax rate from the current levy of $7 per $1,000 of assessed property value, down to $6.78 per $1,000.

That's slightly more than the $6.50 per $1,000 rate city leaders initially proposed.

Despite a 9 percent state-mandated property tax rollback for the upcoming fiscal year - one of the highest percentages in Pasco County - New Port Richey has avoided layoffs and deep service cuts that have affected the county government and other municipalities.

The saving grace for Pasco's largest city is its designation as a redevelopment district, meaning the budget has less property tax revenue subject to the state rollbacks.

Nevertheless, council members were under the gun to cut taxes.

'Things are tough,' Deputy Mayor Jinny Miller said. 'I'm not happy with everything in there, but it's a good budget.'

The city's $17.2 million general fund, which pays for municipal services such as fire and police coverage, will increase by nearly 6 percent, or $943,163, from the current budget.

To balance the general fund, finance officials were forced to slash more than $1 million from the city's reserve fund, a move that worries some council members.

City leaders also expect to generate more revenue to cover operating expenses next fiscal year by increasing some municipal fees. Street lighting assessments also would increase by 15 percent.

Several residents spoke against the proposed increases to the street lighting assessments, calling them another layer of taxation.

Next year's budget package also outlines an aggressive five-year capital improvement plan that includes building a new public works complex, completing the Missouri Avenue drainage project and widening a portion of east Main Street.

The council will hold a second public hearing and final vote on the budget at 7 p.m. Sept. 20 in city hall. Copies of the budget are available at the clerk's office.

Reporter Christian M. Wade can be reached at (727) 815-1082 or cwade@tampatrib.com.

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