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Cities 'Tighten Belts' For '09 Budgets

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By CHRISTIAN M. WADE

The Tampa Tribune

Published: August 2, 2008

NEW PORT RICHEY - The voters demanded lower property taxes, and as Pasco County's cities work on spending packages for the next fiscal year, they are heeding that message.

The county's six municipalities all are facing revenue losses from Amendment 1 and other tax reform mandates, but few are willing to increase the burden on taxpayers to compensate for hundreds of thousands of dollars in deficits.

Instead, they have imposed hiring freezes, scrapped improvement projects and tapped into reserve funds to bridge revenue shortfalls in their budgets.

More importantly, observers say, they're learning to be more fiscally conservative.

Three municipalities - Dade City, San Antonio and Port Richey - have proposed slightly higher tax rates for the next year, but elected officials expect to either maintain the current rates or reduce them before signing off on next year's spending packages.

"We wanted to give staff a little breathing room," said Dade City Mayor Scott Black. "But I think there's consensus on the commission for us to hold tight with the current tax rate."

In New Port Richey, Pasco's most populous city, officials have crafted a $40.3 million budget for the 2008-09 fiscal year that includes no layoffs or cuts in services and a reduction of the city's property tax rate from $6.78 to $6.62 per $1,000 of valuation.

They have managed to do that despite a projected $723,340 decline in general fund revenue because of tax reforms and a drop in sales tax revenue and other sources of income.

"We've crunched the numbers and tightened our belts," said Mayor Scott McPherson. "It hasn't been easy, but we've managed to absorb the financial blows this time around."
Pasco County officials also have been frugal, setting a tentative tax rate of $5.43 per $1,000 of property valuation for the next fiscal year, the same rate homeowners paid this year.

Amendment 1, the tax reform measure voters approved in January, will cost the county about $17.9 million in revenue from the general fund and fire tax fund, county finance officials have said.

Sen. Mike Fasano said he understands it has been difficult for county and municipal leaders to be saddled with mandates from the state to cut taxes and spending.

But, he said, they have been doing a good job at it.

"They're listening to the voice of the electorate," the New Port Richey Republican said.

Rising fixed costs - such as fuel and health care coverage - haven't made it easy for cities.

"The cost of running a city isn't getting any cheaper," said Port Richey Mayor Richard Rober. "It's a matter of finding ways to do things differently and more cost-effectively."
Amendment 1 is predicted to reduce property taxes of municipal governments across the state by as much as $9.3 billion in the next five years by shrinking the ad valorem base.

Most of Pasco's municipalities have been able to compensate for the loss of operating revenue by cutting spending, reducing programs and tapping reserve funds.

Others have been able to weather the cuts with money from new construction and other sources of revenue, such as impact fees and other levies.

Still, the revenue losses mean sacrifices for most cities.

In Zephyrhills, officials have tabled proposals for a new fire station and public library, both capital improvement projects that have been on the table for several years.

Council President Louis Lopez said the city has had to learn to "do more with less."

"We need to learn to live within our means," he said. "And I think we can."

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

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