Clearwater manager proposes raising property tax rate

City Manager Bill Horne is proposing to raise the property tax rate for Clearwater residents, a dramatic turnaround from the cuts of the past two years.

The move would mean the city could bring in close to an estimated $440,000 in additional property tax revenues, but it still won't be enough to save a number of city jobs and services.

It also means residents could pay higher property taxes, despite property values dropping countywide this year.

Horne said he's proposing to roll the millage rate forward from its current rate of $4.677 per $1,000 of taxable value to $5.1.

Even with the increase, the city won't collect as much money as it did this year because sales tax and franchise fee revenues are down. In addition, the Pinellas County Sheriff's Office is expected to raise fees — something city leaders didn't anticipate — for a number of contracts, such as forensics.

"I'll be recommending it because there are some unknowns," Horne said. "We have to pass a millage rate that gives us some room to protect our services."

The City Council, however, ultimately will have to sign off on the plan. And even though those who spoke with the St. Petersburg Times on Wednesday said they haven't seen the proposal, they voiced skepticism. It would need approval by a majority of the five-member council to pass.

"Obviously on Jan. 29, the people voted for a tax reduction," Mayor Frank Hibbard said, referring to Amendment 1, which gave homeowners tax breaks and placed new limits on local governments.

Amendment 1 created an additional homestead exemption of $25,000 for local but not school taxes. It also made some benefits of the Save Our Homes cap portable and struck many tangible personal property accounts from tax rolls.

Vice Mayor George Cretekos said he's also reluctant to raise taxes. "I think everything is on the table, but at this point we shouldn't do that as a first step by any stretch of the imagination," Cretekos said.

The city is currently projecting revenues of $47.27-million for this year. Keeping the property tax rate flat would bring in $43.54-million next year. Raising it to $5.1 per $1,000 of taxable value would bring in $47.71-million.

Earlier this year, the city divided the proposed reductions into three tiers. City budget director Tina Wilson and Horne said all of tier one and at least some of tier two will go.

The first two tiers, which represent $5.8-million in cuts, include eliminating police and fire department overtime pay, increasing camp and sports tournament charges, reducing travel and training, cutting landscaping duties, the Jolley Trolley Beach transit bus and recreation and library hours.

The city's general fund, which covers most of the city's day-to-day operations, stands at $123.2-million with property tax revenues making up 38 percent. The rest comes from a number of areas, including fines, fees and sales tax.

If the city were to raise property tax rates, it's hard to say just how much more — or less — residents would pay in city taxes. Although Clearwater property values on average fell an estimated 7.8 percent from last year, the drops vary from street to street and neighborhood to neighborhood, so individuals will see different effects.

Additionally, the Save Our Home cap allows a 3 percent increase in tax assessment, even if a home's market value falls.

The City Council will get Horne's proposed budget around the end of June, and it has to be approved by Sept. 30, the last day of the current fiscal year.

The city is expected to set a preliminary property tax rate on July 17 and hold a final hearing Sept. 18.

AMENDMENT 1

While the voter-approved Amendment 1 is aimed at reducing property taxes, it doesn't bar local governments from raising tax rates. Here's what it did:

•Created an additional homestead exemption of $25,000 for local but not school taxes.

•Made some benefits of the Save Our Homes cap portable.

•Struck many tangible personal property accounts from tax rolls.

>>Fast facts

Proposed cuts

The city put together three tiers of cuts, but officials say they'll probably have to dip into only the first two. Here are some of the possible cuts listed in those two tiers.

• Reduce special event contributions ($50,000)

• Reduce programming levels for C-VIEW ($78,000)

• Reduce landscape maintenance ($103,200)

• Cut shifts at the East, Countryside and Main Library ($675,830)

• Reduce recreation center operating hours ($297,750)

• Cut Jolley Trolley funding ($150,000)

• Reduce Police Department overtime ($500,000)

• Reduce fire department overtime ($250,000)

• Reduce travel and training ($146,560)

• Reduce memberships and subscriptions ($45,000)

Comments on this article

by Annoyed	Jun 2, 2008 4:27 PM
You RAISED our WATER BILL 6% last October and you also RAISED the cost of reclaimed water. I'm sure you've implemented other fees as well. You're making money from all these "hidden fees."

by Idea	Jun 2, 2008 4:26 PM
Sell the Main Library to a private company for offices/ restaurants. It's just a hang out for the homeless anyway; very under used. Let's recover our 20+ million wasted on that building.

by lamont	Jun 2, 2008 1:27 PM
Goog bye Mr. Horne it's not if your gone but when. Please be sure to take your TAX HIKE with you.The people of Clwtr have grown tired of your bully form of Gov.Don't forget your puppets...jamie,joe and allen... a.k.a. the 3 stoogies.

by Jim	May 30, 2008 8:42 PM
Hey, Jack, I know Mike and he ain't trying to make a name for himself, they guy tells it like it is. Dont see you exposing gov't corruption and telling the people what Horne is really trying to do. Perhaps you're a firefighter

by Jack	May 30, 2008 8:01 PM
2 observations; 1.Mike Donila is trying to make a name for himself by omitting all-important details that are too complex to fit in alotted space & deadline; 2. Clearwater Firefighters are flooding the comments - too much free time/too little work.

by Holly	May 30, 2008 8:00 PM
Interesting. Horne is told to cut, he raises taxes, oh, and he got a hefty raise this year. Go figure.

by Sal S.	May 30, 2008 5:05 PM
Horne was under a clear mandate to reduce the budget signicantly to bring spending cuts, eliminate jobs and programs and he's FAILED MISERABLY, and now wants to bail himself out with the MOST OUTRAGEOUS PROPOSAL OF A TAX HIKE. I say FIRE HIM NOW.

by Harold	May 30, 2008 5:04 PM
This City Manager has failed his mandate to reduce spending, services and to eliminate the unnessary programs and spending. This should mandate that the council fires this incompetent man, immediately terminate him and do not fill his position.

by Brad	May 30, 2008 5:04 PM
I trust that the councilman will do the right thing and rid this City of personel like Horne and his proposal.

by Karen S.	May 30, 2008 1:11 PM
This is beyond belief. Horne is an embarrassment and a disgrace. Salaries, benefits, perks, redundancies and waste are OUT OF CONTROL in Clearwater, yet Horne ignores that, and instead wants to raise our taxes. INSANE! The Council must remove him.

by Tim	May 30, 2008 12:14 PM
And the legislature was really looking out for us. The problem is in Tallhassee. Call you legislator and thank them thanks for apologizing for slavery, reworking the state song and protecting us from Truck Nutz. We get the government we deserve.

by Denise	May 30, 2008 12:06 PM
We just went thru a 8-10 yr.period of record increases of property values.The property taxes also went up along with those property values.Now we have 1 bad yr and suddenly the city is broke? What happened to all that tax $ that Clwtr collected?

by DAVID	May 30, 2008 12:05 PM
MR. City Mis-MANAGER,your on a military pension,$165,000 salary,$7,200 car allowance from the City and still got yourself a 4% raise. ALL your income is from TAXPAYERS ONE WAY OR ANOTHER and U want to raise taxes.Clwtr Gov is out of control ..GREED

by Jeramia	May 30, 2008 12:02 PM
Mr. horne has lost total reality with what is going on in florida. Maybe he should try working like the rest of us and find out what really is happening in the world.

by Jr.	May 30, 2008 12:02 PM
I worked in a FD with 600 firefighters and we had a Chief of Dept., Asst. Chief, four Division Chiefs and eight District Chiefs. That's 14 Chief officers for a Dept. of 600 members. Where does this City get off with 15 for 150 members? MISMANAGEMENT

by John	May 30, 2008 12:02 PM
HA HA HA HA, I told you this was gonna happen. The Scientologists are buying up taxable property and turning it into tax exempt property. Residents of Clearwater: You have been fleeced! NOW YOU PAY!

by James	May 30, 2008 12:02 PM
City Council, do the right thing, eliminate this fool Horne's job and his huge salary a perks. There is no reason why the Mayor can't run this City. The time to act is now, eliminate his position.

by Janice	May 30, 2008 12:01 PM
This administration is without a doubt a total ridiculous disgrace. This Horne wants to totally disregard any savings to the taxpayers of Clearwater by simply juggling the mill rate to make a farce of the State's mandate to reduce property tax.

by Will	May 30, 2008 12:01 PM
These proposed cuts are a total joke. Its an insult to the good people of Clearwater to think that these miniscule reductions mount to anything. These figures need to be quadrupled to start and many other fat programs need to be eliminated. Get going

by Mary	May 30, 2008 12:01 PM
It is about time you people become responsible and reduce staff, reduce spending, reduce and eliminate some of these unnessary programs, get serious and return to the budget of five years ago. That's where property values are now.

by Geno	May 30, 2008 12:01 PM
Please Councilman get rid of thid totally incompetent manager Horne. I struggle to make 20k a year and borrow money to pay my tax now. This guy lives high of the hog and has no idea how we the people of Clearwater struggle to survive.

by Sammy	May 30, 2008 11:58 AM
This cockroach needs to be strung up downtown so everyone can have a piece of him.

by Geno	May 30, 2008 11:58 AM
Please Councilman get rid of thid totally incompetent manager Horne. I struggle to make 20k a year and borrow money to pay my tax now. This guy lives high of the hog and has no idea how we the people of Clearwater struggle to survive.

by Bob	May 30, 2008 11:58 AM
Is this guy OUT OF HIS MIND. The State just mandated MINISCULE reduction in property tax and this moron wants to raise taxes. I say you NEED TO GO HORNE. I struggle to pay my existing tax and put food on my table, also riding a bike to work now.

by Cliff	May 30, 2008 11:19 AM
Cut down the parks department! Each resident can decide for himself what to pay for "fun" and entertainment. This is NOT a function of government!

by Theresa	May 30, 2008 11:17 AM
Are you kidding me. Where oh where are we (residents) supposed to get this money from. Start elimatating the jobs are the top starting with Mr. Horne's. What a brainless suggestion. Mr. Horne "See YA! I hope. Look for a job up north.

by hector	May 30, 2008 10:39 AM
It is time the city cut expenses, not raise taxes, Eliminate all take home vehicles Privatize some city functions such as i.e. solid waste, gas Spend money on parks not bailouts for downtown businesses ($2 million plus renovations for a theater) The more they have the more they want and spend Enough is enough the proposal should be to cut city taxes

by Wiseman	May 29, 2008 5:06 PM
Mr.Horne why don't you and your greedy Department Directors give up your monthly car allowance. Most of those clowns you call directors would not survive a day in the private sector.

by Ned	May 29, 2008 5:06 PM
This bump in the Clearwater property tax rate is nothing compared to what's coming to St. Pete residents if the stadium debacle moves forward.

by Brad	May 29, 2008 4:45 PM
Thank you Bill Horne, You just made my decision not to buy a home in Clearwater extremely easy. You are the definition of a Buffoon.

by jon	May 29, 2008 4:44 PM
Mr.Horne why don't you propose privatizing the pension plans/golden parachutes and have you and your employees contribute to the plan. This is what the private companies did in the 80's to survive!!!!!!!!!!!

by CC	May 29, 2008 4:39 PM
We still have 15 chief positions and multiple chiefs showing up on calls. Why does Riley have to show up on fires when they have other chiefs there? Remember, they wanted a management presence. More overetime for Ricky at the taxpayers expence

by CC	May 29, 2008 2:54 PM
Why is Horne still here? He has cost the citizens too much money in his incompetence and personal vendettas. Why not cut out his car, insurance, pension and other perks? Maybe even give back his 3.9% pay raise. Let him make the sacrifices too!

by Phred	May 29, 2008 12:26 PM
Property values down, tax rate up - as predictable as sunrise. Until cities grow money trees, count on it. Save your outrage for the politicians who gave us Amendment 1 and false expectations.

by Will	May 29, 2008 11:23 AM
Outrageous! See what happens when you hire a City Manager with no experience at anything except Military Bureacracy? If operational incompetence won't get Horne fired, maybe fiscal incompetence will. City; wake up! Horne is clueless!