Although $1.7-million more than the current one, officials say higher property values and cost cutting mean a leaner budget for 2003-04.
By ANNE LINDBERG
Published August 24, 2003
PINELLAS PARK - Even with expectations of sharply reduced income, the city plans to hold its tax rate steady for the coming fiscal year.
Property taxes will not stay the same. As values climb, owners will pay more taxes in 2003-04 than they did this year.
At 5.0788 mills, the owner of a house valued at $100,000 with a $25,000 homestead exemption can expect to pay $380.91 in city taxes. That's in addition to school, county and other taxes that will be levied by other government agencies.
It could have been worse, city officials said, given the poor financial market and increased personnel costs.
"It's a lean budget," Pinellas Park City Manager Mike Gustafson said. "We did say no to quite a few things."
Expenses will be similar to this year, said Dan Katsiyiannis, head of the city's Office of Management and Budget.
The main increases come in the $23.1-million capital improvements budget, Katsiyiannis said. Pinellas Park has borrowed about $11.1-million by selling bonds to improve the city's water and sewer system. Those repairs must be done, he said, to keep the system operating.
The first payments for those bonds come due next year.
The City Council hoped to pay off another debt by authorizing $16-million in bonds at a much better interest rate - much like switching credit cards. The city would buy and renovate the Pinellas Park Baptist Temple church building for $6-million and redeem the outstanding bonds with the rest of the money.
Then interest rates went up, quashing that idea. Officials are waiting another week or so to see if the market improves.
If it doesn't, Katsiyiannis said city staff would recommend borrowing from the water and sewer fund to buy the church property for $3-million. That amount would be paid back with interest over time.
Katsiyiannis said holding the line in the general operating budget was difficult. Officials faced lower income from the communications services tax, for example, about $500,000 less than the current year.
Some costs - the city's pension plans, for one - were higher than expected due to increased benefits and a smaller return on the city's investments.
This year, Pinellas Park officials came up with about $2.04-million to keep the plans where they are. That figure included $296,295 for the firefighters' pension and about $1.7-million for the general employees fund. The police fund needed no additional city money.
Next year, it's estimated the three pensions will need a $2.9-million assist from the city to keep them properly funded. Figuring that into the budget has been "challenging, to say the least," Katsiyiannis said.
Also this year: City attorney Ed Foreman is budgeted to get about $533,920 next year, a 36 percent increase from this year. Katsiyiannis said the jump is misleading; last year's budget was changed after it was adopted to reflect a $208,475 increase in legal fees.
The overall legal budget of about $630,000 is projected slightly lower than this year.
While unlikely, changes can be made to the proposed budget before it is finally adopted later this year.
The council is expected to give it tentative approval Thursday. Final approval is scheduled for Sept. 11. Both meetings are at 7:30 p.m. in City Hall, 5141 78th Ave. N. Both are open to the public.
Budget at a glance
Pinellas Park staff members have proposed a $41-million operating budget for the 2003-04 fiscal year. While that is about $1.7-million more than the current budget, officials say it's lean and represents the elimination of some positions by attrition, cost cutting and bond sales. Here are some numbers from the proposed budget.
OUTGOING: $2.9-million
Estimated amount the city needs to contribute to the three employees' pension funds in 2003-04. The allocation is about $845,000 more than Pinellas Park had to contribute this year. The bulk - $1.7-million - goes to the general (non-union) employees' pension fund.
$612,675
Proposed legal budget. Much of it - $533,920 - goes to city attorney Ed Foreman. The rest is divided among the labor attorneys, Thompson, Sizemore and Gonzalez, and the prosecutor for the code enforcement board, James Denhardt.
$10.4-million
Police department budget, the largest overall departmental expenditure.
$27.05-million
Total personnel cost, including salaries and benefits for 459 employees.
$23.1-million
Total capital improvement budget for 2003-04.
INCOMING: 0
Increase in the tax rate of 5.0788 mills.
$11.4-million
Total estimated ad valorem (property) tax revenue - about $845,360 more than this year's take.
$2.4-million
Projected income from half-cent sales tax.
$150,000
Rent from Pinellas Park Baptist Temple. The congregation is remaining on the property until its new sanctuary is ready.
$1.6-million
Money from Pinellas County for running Fire Station 36 in the unincorporated High Point area. The county collects the tax levy on residents of that area and forwards it to Pinellas Park.
