ST. PETERSBURG — The Pinellas Suncoast Transit Authority stands to lose $2 million a year if voters approve an expansion to Florida's homestead property exemption on the 2018 ballot.
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In the face of those losses, the PSTA's governing board decided Wednesday to lock in the current level of funding and keep property taxes at the cap for the 2017-18 fiscal year.
Those taxes provide most of the bus agency's funding.
"It's very important that we maintain our funding sources in the event that this has a negative impact on our future ability to operate," said Belleair Bluffs City Commissioner Joseph Barkley, who sits on the PSTA board.
The property tax rate, which is paid by property owners countywide, would remain at $0.75 per $1,000 in assessed taxable property value. The new fiscal year starts Oct. 1.
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However, the board did not discuss any ways to make up for a drop in funding if voters approve the expanded homestead exemption. This year the Legislature put the constitutional amendment on the 2018 ballot. If passed, it would add a $25,000 homestead exemption on properties valued at more than $100,000, depriving municipalities of millions.
PSTA's budget is balanced through 2021 with no cuts to service, said Chief Financial Officer Deborah Leous. Although PSTA had to dip into its reserves to cover last year's fiscal budget, next year's $96 million budget should be fully funded, thanks to the approval of the maximum property tax rate. But those projections don't include what could happen in 2018.
"This is helping us balance our budget going forward," Leous said.
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The board also appointed Pinellas County Commissioner Janet Long as the agency's representative for the Tampa Bay Regional Transit Authority, which was recently reshaped by the Legislature to focus on the bay area's transit needs. She will serve for two years.
"I think it's great to have Commissioner Long to be the first representative from PSTA," said agency CEO Brad Miller, "because she's had so much part in advocating for a more regional approach to transportation."
Whlie TBARTA is in the early stages of its reorganization, a Florida Department of Transportation study is continuing to look into possible transit options for Tampa Bay, including rail and express buses. The study should conclude sometime next year.