Politics & Government
City Finance Director Defends Tax Increase for Dunedin
Dunedin residents may see their first tax increase in a decade next year because reserves in the city coffers are dried up, a top city finance official says.
Dunedin residents may see their first tax increase in a decade next year because reserves in the city coffers are dried up, a top city finance official says.
Karen Feeney, city finance director, supported City Manager Rob DiSpirito's call for a slight increase in Dunedin's millage rate to make up for a $1.3 million shortfall in the next fiscal year budget during a public budget workshop at City Hall Monday.
The rate increase, from 3.38 percent to 3.73, would end up costing the average homeowner $55 a year, depending on the person's property value, and it would potentially add $595,000 a year to the general fund. DiSpirito told city leaders the other option would be to cut $500,000 in services or dip into reserves.
However, Feeney said the millage increase was necessary Monday because "we have very few reserves left with which to operate."
She said most of Dunedin's remaining reserves are restricted, and some things the city has held off on purchasing during the past six-year recession, such as replacement vehicles and computer equipment, can no longer be deferred. Feeney also said that the city is looking at having to take on large debt for financing multiple upcoming projects to replace aging facilities such as the municipal services building and Fire Station 61.
This year, in a confusing 4-1 vote, city leaders approved a $800,000 "quality of life" package for Dunedin Fine Art Center's expansion, Dunedin Historical Museum upgrades and up-and-coming Blatchley House renovation at Weaver Park, funding for which is now being proposed to be covered through a one-time withdrawal from the city's risk safety fund, a self-insurance coffer that all the departments pay into.
"Our expected expenditures exceed projected revenues," Feeney said.
She also said they looked at alternatives to a millage rate increase, which included decreasing the proposed city employee pay raise from 2 to 1 percent and cutting to the following public services:
- Athletics programs and camps
- Aquatics programs
- The Hale Senior Activity Center
- Dunedin Public Library materials
- Sailing camps
- Hog Hustle 5K
- Rental services of the athletic fields to other youth and adult groups and the Hale Senior Activity Center for special events
"Really all of the other departments involved in the general fund are so small and their budgets are so small we couldn't get close to the amount of dollars it would take to balance the budget to really go there," DiSpirito said.
Although city employees received a 1 percent raise last year, the several positions were cut too, which meant lay offs for some and a reduction in hours for others.
"We've been going there with those budgets as well quite a bit for the last five years," DiSpirito said. "And there just isn't really anything else to take."
Budget discussions are ongoing in three commission workshops scheduled Monday, July 8, Wednesday, July 10, and Monday, July 15. Workshops are open to the public and typically run from 9 a.m. to noon at City Hall.
Links to the remaining budget workshop agendas:
- Wednesday, July 10, covering enterprise funds and enterprise capital
- Monday, July 15, covering internal service, special revenue, non-enterprise capital improvement project funds and outside agency requests
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