 |
Margate Residents Brace for Tax Hike
• City's mill rate on the rise
Saturday,
June 27, 2009
Margate residents can expect their millage rate to increase this year. Possibly to as high as 7.86 (the maximum allowed by the state), a more than 16 percent jump from the current $6.75 per $1,000 in home value and an almost 38 percent increase over the 2008 adopted millage rate.
WHY?
A drop in home values has the city collecting $2.4 million less in ad valorem taxes this year. In addition, the city will receive $2 million fewer sales tax and gas tax dollars and other miscellaneous revenues passed down by the county and state -- a direct result of a poor economy. This means the city has $4.4 million less to balance the budget this year.
Without raising the city’s millage rate to support Margate's $54 million budget this year, city services would more than likely suffer, said Margate City Manager, Frank Porcella.
Last year, Margate taxpayers paid the third highest millage rate in Broward County. Pembroke Park was the highest at 8.5 mills and Sea Ranch Lakes came in second with $7.50 paid per $1,000 in home value.
Average home values in Margate are marginally lower than in neighboring cities, where housing stock is much newer, commerce is more robust and where homes command a higher selling price.
Margate's high millage rate, in large part, is due to the fact that Margate is residentially and commercially built out, stifling the city's tax base. With the exception of roughly 44 acres of undeveloped Margate Community Redevelopment Agency property, which will probably sit vacant for at least for two to three more years, say city officials, no-growth tax revenues in the city could result in higher ad valorem taxes just to maintain the status quo, despite a drop in home values.
What did the city do with the windfall when times were good?
In addition to expanding greenspace, overdue maintanance projects and needed upgrades (IT for example), it went to employee salaries and benefits, Porcella said.
_____________________
WHAT ABOUT RESERVE FUNDS?
Although Margate has $6 million in reserves, Porcella said reserve funds are earmarked for emergencies and needed one-time expenditures – not for balancing the budget.
WILL ANY CITY EMPLOYEE RECEIVE A PAY RAISE THIS YEAR?
No. The city is freezing everyone’s pay this year. Whatever city employees are making today; they're making tomorrow, Porcella told residents attending a public workshop Saturday morning at Margate's Focal Point Senior Center.
According to Margate City Commissioner, Pam Donovan, a pay freeze is the only way to avoid layoffs this year.
HOW ABOUT OVERTIME?
Porcella said that overtime for both Police and Fire is almost a given, as it’s difficult to schedule around unforeseen emergencies or criminal activity. Notwithstanding, city officials are doing everything in their power to control it.
“Now is not the time to cut back on these services. Crime is out there, whether people like to think so or not,” said Porcella, adding that violent crime is on the rise.
Recently, the city received a grant to put nine more police officers on the street.
With regards to overtime at city hall, “If it’s not an emergency, it’ll be held over,” Porcella said. This, in an effort to alleviate overtime activity for non-emergency equimpment repair and business activities that can wait until the next business day.
Porcella told residents at the workshop that Margate is a ‘lean city’ in terms of operations and no department is overstaffed. He challenges anyone to come in and point out a person that the city doesn’t need, he said, and if someone does, “I’ll take a look at it,” he said.
The city manager expressed great admiration for his staff and said that there are some city employees that practically do the job of two. He added that in the past three years, the city has cut overtime by $1.3 million, a reduction of 48 percent.
The city has also reduced employee healthcare costs by almost a third, he said.
CAN RESIDENTS EXPECT A CUT IN CITY SERVICES?
If all goes as expected throughout the budget process this year, Margate residents and businesses shouldn't lose any services – but they won’t gain any either. If city services need to be cut, Margate Inner City Transit routes might be on the chopping block, but only if absolutely necessary. Although the city has found a company to run inner city transit at a significant cost savings to taxpayers, elected officials haven't yet decided whether to engage the company.
If the city does choose the company at a yearly savings of $250,000, “It’s a win-win for the city,” Donovan told MargateNews.net, but it might be an uphill battle, she says, if fellow commissioners, the Mayor and Vice Mayor don't agree.
Should inner city transit programs get cut, Porcella expressed concern over the impact it would have on the people that rely on the service to get to work, shopping and the doctor.
WILL MARGATE'S FIRE ASSESSMENT INCREASE?
Porcella is recommending to the city commission that the fire assessment remain at $185 per household in the upcoming budget year.
WILL THE IMPENDING FPL RATE HIKE IMPACT MARGATE TAXPAYERS?
Absolutely.
If the rate hike is approved, the city must pass increased energy costs onto taxpayers. However, a half-million dollar energy grant received by the city to replace the roofs on City Hall and the Community Center and to install solar panels on each may help offset a rate hike.
______________________
Residents attending the public workshop expressed a variety of concerns regarding this year’s tight finances.
Staunch city services advocate and former Margate City Commission candidate, Le Peerman, expressed disappointment in another year passing with stifled recreational funding in Margate and the loss of the city’s marine boat which patrols city canals.
Another resident questioned why city employees get paid as much as they do. Porcella agreed that Margate City employees earn a good wage, but to the benefit of the resident, as seen in quality customer service.
“Pay and benefits play a big part in attracting quality people and getting them to apply,” he said.
In response to a resident request that Southeast Park (known for its soccer fields) receive needed maintenance, Porcella said the city would see what it could do and responded favorbably to the idea of matching soccer league funds dollar to dollar.
Margate resident, Scott Yardley, who is challenging incumbent Jim Waldman for the District 95 Florida State Representative seat in November 2010, commented that Margate's budgetary problems and rising millage rate may result from high administrative costs and overinflated payrolls in the city.
Having close to kind words for Porcella, long-time Margate City Commission critic, Rich Popovic, known for his 'no holds barred' approach to city politics, told Porcella that he can only do so much given the elected officials he works for.
What does the future hold?
If the economy doesn't improve over the course of the next year, the city might have to start laying people off, Porcella said. This year, the city will do everything in its power to avoid such a scenario.
Will longevity bonuses continue? Yes. Can anything happen between now and when the city commission approves the budget in September? Yes.
Want to shout out about the upcoming 2009-2010 budget?
The budget will be presented to Margate City Commissioners in the form of a public hearing on August 25 at 7 p.m. in City Hall chambers. Also, Porcella said his door is open to any resident or business owner who has questions regarding the budget.
"When I first came here as City Manager three years ago, we were living out of our savings account," said Porcella, adding that Margate has come a long way in a short period of time.
__________________________________________
Get MargateNews.net on your desktop, laptop or mobile Internet with customizable RSS (Real Simple Syndication) Feeds. Receive all the news, or just some of it, as soon as it’s published! Sign up now.
Access the wireless version of this website by visiting http://www.margatenews.net/margatenews/wireless with your WAP (Wireless Access Protocol) Internet-enabled wireless device.
Copyright Cassius Group 2009
| |
