GULFPORT — For the fifth consecutive year, the city's property tax rate will remain the same, though many property owners will pay more because of increased property values.
At about $4.04 per $1,000 of assessed, taxable property value, the owner of a $150,000 home with $50,000 in exemptions would pay $404 in city taxes.
Despite a bigger revenue stream, the city will shrink the operating budget by $2.5 million.
So where does the extra money go?
"A good chunk of it will go toward capital improvements," City Manager Jim O'Reilly said. "We have some pretty aggressive improvements under way, including the Shore Boulevard project, and the Marina's new facility."
A portion of the money will also go toward securing funding sources for additional projects, according to O'Reilly.
"All too often, you need money to get money. This year, for the first time in a long time, the city has the financial resources to go after grant sources. When you have matching funds, you have more opportunities," he said.
Heavy summer rains severely tested the capabilities of the city's aging sewer system, and dumps into Clam Bayou and Tampa Bay by neighboring St. Petersburg focused the community's attention on the need to upgrade the city's sewer infrastructure.
Consequently, the city allocated nearly $5 million over the next five years toward sewer repairs that includes a $3.5 million loan from the state. The money will allow inspection of sewer lines with cameras to continue, and provide for repairs and the replacement of deteriorated pipe.
"No doubt some people will think we should have borrowed more money and fixed the entire system all at once," Mayor Sam Henderson said. "The consensus was that we didn't want to tie the hands of future councils by putting them so far in debt they would be limited with what they could do with their annual budgets when that time came.''
"We live within our means," O'Reilly said.