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Pasco County Unveils Trimmer Budget

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By JULIA FERRANTE

The Tampa Tribune

Published: July 16, 2008

NEW PORT RICHEY - Pasco County leaders will spend less, and homeowners will save an estimated $115 each in the 2008-09 fiscal year, thanks to statewide property tax reform and a struggling economy.

For the first time in three years, Pasco County's proposed budget has dipped below $1 billion, although it remains close at $980 million. That represents a 19 percent decrease from the current fiscal year total of $1.2 billion, County Administrator John Gallagher said Tuesday.

Pasco County commissioners got their first look at the fiscal 2008-09 budget at a special meeting in New Port Richey. It includes higher fees for parks, planning, zoning and development services and about $3.8 million more to compensate for higher fuel costs. The plan also has 44 fewer full-time positions than this fiscal year, although some jobs are being added.

The board commended Gallagher and department heads for trimming spending, and recognized employees for coming up with ideas that collectively saved about $19 million.

"I think what you have just delivered, Mr. Gallagher, is a pretty impressive budget, given the circumstances," Commissioner Ann Hildebrand said. "We heard the drumbeat of taxpayers, and Pasco County has responded."

The 2008-09 spending plan is based on maintaining the current tax rate of $5.43 per $1,000 of property valuation. The tax for fire and rescue services also will hold steady at 99.55 cents per $1,000 of valuation.

County commissioners in coming weeks will begin negotiations with Sheriff Bob White and other elected officials to refine the budget. One item that must be resolved is how to pay salaries for staff at a three-story, 768-bed jail addition under construction in Land O' Lakes. The budget includes $1.8 million from reserves to pay those salaries for part of the upcoming fiscal year. Commissioners must find a way to pay for staffing next year and beyond, Management and Budget Director Michael Nurrenbrock said.

Commission chairman Ted Schrader said he and Gallagher met with White in recent weeks to discuss his budget requests with the goal of saving jobs. Because of those early talks, Gallagher was able to present a balanced budget to the commission, unlike last year, when he asked it to decide on the bulk of the cuts.

Among the concessions White agreed to this year was freezing worker salaries.

"It will make our job much, much easier this summer," Schrader said of the meetings with White.

Last year, the sheriff and county commission engaged in a contentious battle about spending that lasted through the summer. The new budget goes into effect Oct. 1.

Economic Incentives Increase

One item in the new budget that garnered an increase was an allocation for economic development incentives. The budget includes $2.5 million, which is $500,000 more than this year. That's enough to match a state grant for the same purpose.

In addition to county taxes, property owners must pay school taxes, water district and mosquito control district fees and other assessments. Those in municipalities pay local taxes.

Even though the countywide property tax rate will stay the same, county leaders will collect less than they did this fiscal year, Nurrenbrock said. That's because voters in January approved a constitutional amendment that allows an additional $25,000 homestead exemption for properties valued at more than $75,000.

The constitutional amendment will cost the county about $17.9 million from the general fund and fire tax fund, Nurrenbrock said.

In a declining real estate market, Florida property appraisers by law must increase assessments for full-time residents protected by Save Our Homes by 3 percent or the rate of inflation, whichever is lower. The inflation rate is more than 4 percent. The increase will, however, be more than offset by the additional homestead exemptions, Nurrenbrock said.

In fact, a homeowner whose property was assessed at $175,000 in 1995 with a $25,000 homestead exemption and paid $1,558 in county property taxes would pay an estimated $1,262 in county property taxes in the coming fiscal year, even though his home would be assessed at about $246,000, Nurrenbrock said

Additional changes in property tax law, such as portability of the Save Our Homes benefit when homes are sold, will be reflected in the 2009-10 fiscal year budget, Nurrenbrock said.

Revenue Shrinking

Almost every revenue source coming into Pasco is expected to decrease, Gallagher said. State revenue sharing and proceeds from a half-cent sales tax are projected to decrease by about $2.3 million. Interest income could drop by $11.5 million.

The fund balance, or revenue unspent in previous years or allocated for future projects, is expected to decrease significantly, in part because of planned roads and buildings, such as the jail addition in Land O' Lakes and expansions of state roads 54 and 56. That revenue comes from sources such as gasoline tax, transportation impact fees and paving assessments.

About $300 million in road projects are planned for the next five years, including about $94 million to be spent in the coming year, said Bipin Parikh, the assistant county administrator for development services.

In anticipation of budget shortfalls last year, Gallagher instituted a partial hiring freeze and asked his department heads to spend only what they needed.

Those decisions saved an estimated $4.9 million, Gallagher said. Salaries also have been frozen for the coming fiscal year.

Several months ago, 22 positions were eliminated from the building inspections and central permitting divisions. Seven of those positions were vacant, and 15 people were laid off because of a major slowdown in the real estate market and diminishing demand for those services.

Of the 15 laid off, 14 workers were assigned to other departments.

One declined another job with the county.

The proposed budget eliminates another 22 positions that are vacant, Nurrenbrock said.

Most of the positions are in the parks and recreation, engineering, planning and development review divisions.

About 15 positions will be added in the stormwater and water and sewer departments to comply with the federal Clean Water Act and to expand oversight of utilities.

Other savings - about $313 per employee - came from changing the county's health insurance carrier from Blue Cross to Aetna.

The first public hearing on the budget is scheduled for 6:30 p.m. Sept. 8 at the historic Pasco County Courthouse, 37918 Meridian Ave., Dade City.

The budget may be viewed at www.pascocountyfl.net.

Reporter Julia Ferrante can be reached at (813) 948-4220 or jferrante@tampatrib.com.

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