Metro
Budget includes 5% property tax increase
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Published: February 23, 2012
NEW PORT RICHEY - Pasco County commissioners are looking at another grim budget year because of the county's weak economy and home values that continue to fall.
"I'll try to make it as painless as possible," Budget Director Michael Nurrenbrock told commissioners Tuesday during their first work session for the fiscal 2013 budget. Then he proceeded with the bad news.
If commissioners keep the same property tax rate, they will be staring at a $6.5 million deficit for the general fund and fire fund. That doesn't take into account funding cuts from the state, Nurrenbrock said.
Commissioners were able to avoid a tax increase last year and minimized the number of layoffs, largely because of legislation requiring public employees to contribute 3 percent of their salaries to the state retirement plan.
There's no such fix for next year's budget.
Commissioners unanimously agreed to adopt a rollback millage rate, which would generate the same level of revenue as the current millage rate despite lower property values. In this case, the rollback requires a 5 percent increase in the property tax rate.
The consensus decision gives Sheriff Chris Nocco and other county officials a goal as they start preparing their departmental budgets.
"We have to give the departments some kind of target as to what they need to hit," Nurrenbrock said.
The rollback rate would cost taxpayers an additional $40 for every $100,000 of taxable property. For residents who don't pay the county's fire tax, the increase would be $32.64 for every $100,000.
"Even with the rollback rate, you're going to have to make significant cuts," County Administrator John Gallagher said.
Commissioner Jack Mariano pointed out that the average home in Pasco County has a taxable value of about $50,000, which means the projected tax increase would be closer to $20.
In other business, commissioners voted 3-2 to shift the Suncoast Parkway corridor and its interchange with State Road 52 into the county's urban services district. The decision goes against the recommendation from county planners, who warned it could cost the county $22 million in future development fees.
"Once that's lost, it's lost forever and you have to make it up somewhere," Executive Planner Carol Clarke said.
Under the county's new mobility fee program, lands that are classified as urban are charged the lowest impact fees for new construction. The fees are set at zero for some uses, such as hotels and industry.
Clarke said the interchange and Suncoast Parkway corridor were never envisioned as an urban area, even though the area has potential for industrial development. She reminded commissioners that they changed the area from a rural district to a suburban district, in part, to encourage office and industrial development.
Commissioner Ted Schrader likened the area to the intersection of Interstate 75 and Bruce B. Downs Boulevard. "USAA built a huge office complex there before any of the retail development," he said. "Who wouldn't want that growth in Pasco County?"
He said that without the urban designation, companies simply would choose to locate a few miles north, in Hernando County. "I don't want them driving through Pasco County on their way to Tampa," he said.
Commissioners decided against a proposal to change the 3,273-acre Watergrass community from a suburban to urban category.
Planning and Growth Administrator Richard Gehring argued that Watergrass meets the classic definition of suburban development. He told commissioners if they classify it an urban district, every other property owner in the area would be entitled to the same consideration. There would have been a domino effect that could have cost the county nearly $40 million in future mobility fees.
lkinsler@tampatrib.com (813) 371-1852
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