Another perspective...

[FD Bro']

Oldsmar officials calm about Amendment 1's effect
The mayor says cuts may be in the future but not in the city's workforce.
By TERRI BRYCE REEVES, Times Correspondent
Published February 2, 2008


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OLDSMAR - Many local government officials are concerned Tuesday's passage of Amendment 1 will mean further cuts in services, special events and jobs.

Then there's Oldsmar, where local leaders say the sky isn't falling - at least not yet.

For one thing, Oldsmar's mayor says he expects no job cuts.

None.

That's not to say there won't be any effect.

Over the past few months, Mayor Jim Ronecker has said the amendment would lead to further inequities between property owners. He worried that this city with about 14,000 residents and a large commercial-industrial base might have to cut services.

Now he wonders how much.

"I don't think at this point anybody has any idea of what the impact could be," he said. "I would have preferred that we waited for the recommendations of the Taxation and Budget Reform Commission a state panel that has the power to put tax measures on the November ballot. But the voters have spoken and I respect that."

Whatever happens, there will be no cuts in the number of city firefighters or law enforcement officers provided by the Pinellas County Sheriff's Office, he said. And other staffers should have no job worries, either.

"We're going to do whatever is necessary to make sure that no city staffer loses their job," Ronecker said.

On Tuesday, 64 percent of Florida voters approved Amendment 1, which is estimated to save each Florida homeowner about $240 annually. On the other hand, it is expected to cost local governments $9.3-billion statewide, over five years.

Part of the tax relief is the additional $25,000 homestead exemption.

Oldsmar City Manager Bruce Haddock thinks that could equate to a loss in the city budget of about $250,000 in property tax revenue each year.

Haddock said he has no way to assess the effect from another part of the amendment, the portability factor of the Save Our Homes Cap, where homeowners can take accrued tax benefits with them when they move.

Still he thinks the blow to the 2008-09 budget could be minimal.

"My preliminary opinion is that it could be zero," he said Thursday. "That is, at this point, two days after the election."

That's because he plans to advise the Oldsmar City Council to raise the tax rate.

"I'm going to recommend that we go with a millage rollback rate to collect what we collected this year," he said. Under Florida law, taxing authorities can use this to keep the revenue from property taxes the same as the previous year.

Falling property values shouldn't affect services either, he said.

How much property values have fallen won't be known until the Pinellas County Property Appraiser's Office provides an estimate in May. Even so, Haddock said there is a misconception that falling property values will mean lower tax revenues.

That's because the Save Our Homes Cap allows a 3 percent increase in tax assessments, even if the home's market value falls.

"When the market drops, the taxable value can still go up," he said.

For example, Haddock cites the case of a home with a market value of $300,000 and an assessed value of $200,000. If the value of the home drops 5 percent, or $15,000, it then becomes worth $285,000.

The Save Our Homes Cap allows taxing authorities to increase taxes until they reach market value. So the assessed value can increase by 3 percent, or $6,000, to $206,000.

The city staff will start working on the budget in March and submit a proposed budget to the City Council in July.

"It's our job to provide the services that residents and businesses want, and for the most part they are willing to pay for those services," Haddock said. "We get very few complaints about the taxes."

Reach Terri Bryce Reeves at treeves@tampabay.rr.com.






FD Bro'

Well said.