MOD 589
04-13-2009, 08:16 PM
The Naples City Council this morning tentatively said that it would support a rollback tax rate in fiscal 2010. That decision, though, still means the city of Naples is facing a $2.5 million shortfall in fiscal 2010.
Council members spent the morning discussing ways to balance the fiscal 2010 budget. The city is facing a $2.5 million shortfall next year. That sum would jump to $5 million if the city were to decide not to raise taxes to the rollback rate.
The rollback rate is the rate at which property taxes are set to raise the same amount of tax revenue as was raised in the previous year. During years when property values increase, officials can roll back the tax rate to a lower rate to bring in the same amount of revenue.
But the city of Naples is projecting a 15 percent decline in property values this year. That means to bring in the same amount of revenue as this year, officials will need to increase property taxes.
The gap can be closed, according to a report by Finance Director Ann Marie Ricardi, through days off without pay for employees, salary and benefit reductions, and layoffs.
The option that was presented this morning could eliminate 18.5 full-time equivalent positions.
Ricardi also proposed increasing the city's telecommunications tax. That increase, she said, could bring in an additional $900,000 in revenue next year.
Council members spent the morning discussing ways to balance the fiscal 2010 budget. The city is facing a $2.5 million shortfall next year. That sum would jump to $5 million if the city were to decide not to raise taxes to the rollback rate.
The rollback rate is the rate at which property taxes are set to raise the same amount of tax revenue as was raised in the previous year. During years when property values increase, officials can roll back the tax rate to a lower rate to bring in the same amount of revenue.
But the city of Naples is projecting a 15 percent decline in property values this year. That means to bring in the same amount of revenue as this year, officials will need to increase property taxes.
The gap can be closed, according to a report by Finance Director Ann Marie Ricardi, through days off without pay for employees, salary and benefit reductions, and layoffs.
The option that was presented this morning could eliminate 18.5 full-time equivalent positions.
Ricardi also proposed increasing the city's telecommunications tax. That increase, she said, could bring in an additional $900,000 in revenue next year.