TREASURE ISLAND — Thanks to rising property values, city commissioners are not expected to increase tax rates for the coming year.
Commissioners have tentatively approved a property tax rate of $3.33 on every $1,000 of assessed, taxable value, the same as this year's.
The $22.1 million budget reflects a 7.4 percent increase in property values, the fourth consecutive year they have risen.
However, a proposal to begin a five-year effort to gradually raise taxes to pay for maintenance and operating costs of Treasure Island's causeway and bridges is being recommended.
City Manager Reid Silverboard is proposing that beginning in 2018, the city increase the rate by 10 cents per $1,000 to generate $950,000 a year more revenue through 2021.
"Although property values are increasing, they are still 14 percent less than the prerecession levels of 2008," Silverboard said. "We are preparing a five-year budget."
The reoccurring maintenance costs of the bridge tenders and the causeway is about $600,000 to $700,00 a year, he said, with no dedicated revenue source to pay for it.
Silverboard said the city previously received about $1.6 million in gross revenue from tolls.
Commissioners have been discussing reinstituting a toll on the causeway, and at a budget workshop last week they voted 4-1 to pursue hiring a consultant to come up with a financial plan for tolling.
Commissioner Ken Keys cast the lone dissenting vote, saying he had made a campaign promise to not support tolls or tax increases.
"I do not want a toll, so if you are against an issue, why spend money to come up with a financial plan?" he said.
As to whether he would support Silverboard's five-year tax increase proposal, Keys said he is taking a "wait and see approach."
Mayor Robert Minning also said it is too soon to make a decision on whether he would support a toll or future tax increases.
"When we project out five years it is nice, but that's what it is, a projection. It gives us an idea of what will happen, but we are too far out to make a decision now. There are too many things that could impact that decision," he said.
Silverboard is also proposing revamping the city's parking fee structure to generate more revenue.
He is suggesting increasing $1.50 and $1.75 an hour fees to $2 an hour, installing more metered parking, raising parking violation fines by $5 and outsourcing the fine collection process.
Also included in the budget is a 1 percent raise for city employees and up to a 4 percent merit increase.
The public will get its first chance to give opinions on the budget at two public hearings Sept. 6 and Sept. 20.