County: Higher millage saves us --- OMB suggests higher property tax

County: Higher millage saves us --- OMB suggests higher property tax

PETER GUINTA
peter.guinta@staugustine.com
Publication Date: 07/08/09

The Office of Management and Budget submitted a tentative 2010 budget to the St. Johns County Commission Tuesday afternoon that recommends an increase in property taxes to the county that would result in the owner of a $200,000 home paying about $150 more per year.

The commission plans another meeting at 9 a.m. Thursday to exclusively focus on the budget.

Chairwoman Cyndi Stevenson said county administration and OMB staff had done "good solid work" on the document.

"It's been a long slog," Stevenson said. "We have a bit more work ahead of us that's really critical."

The commission plans to take public input Thursday, then follow Florida law and set the tentative rates by July 21. Public hearings are set for Sept. 15 and Sept. 22.

Doug Timms, director of OMB, said that the value of taxable property in St. Johns County dropped $3 billion this year to an estimated $20.5 billion for 2010 and $19.67 billion for 2011.

A drop in property value means a corresponding drop in property tax collections. The 12 percent drop in St. Johns -- worse than in surrounding counties -- means a $35 million budget shortfall over the next two years.

Despite the extreme budget, the county still plans to put money into budgeted reserves.

The county has tried to save money, mandating no step or cost-of-living wage increases, a continued hiring chill, a 50 reduction in county travel budgets, a 20 percent reduction in county gas budgets and a 7 percent reduction in all other operating expenses.

In addition, about 150 staff positions were eliminated. Early retirement was implemented for 38 employees, debt was reduced and restructured, and insurance contracts were renegotiated.

The capital improvement plan was cut by $10 million to $67 million. Timms called it "a major way to re-invest into the community."

His projections show that capital improvement will continue to drop. For 2011, it will go as low as $25 million and only a fraction of that in later years.

In an irony of sorts, Timms said the millage rate increase will actually mean a net decrease in taxes. Fiscal year 2009 collected $134.7 million in property taxes. For 2010, that will be closer to $131.7, precisely $3 million less.

If the millage had not been raised, however, only $117.4 million would have been collected.

A $200,000 taxable value home paid $1,219 this year, which will rise to $1,369 in 2010.

On top of that the tax collector will add millage from the School Board, water management districts, airport, mosquito control and other entities.

Stevenson said the county's taxpayers, small businesses and large businesses were all facing the same budget decisions the county is facing.

"Change is going to be part of our lives and how we operate for the next couple of years," she said.

Click here to return to story:
http://www.staugustine.com/stories/070809/news_1720518.shtml

© The St. Augustine Record