Water managers hold tax rate level, swallowing $61 million shortfall
Palm Beach Post
2010-07-19
Water managers hold tax rate level, swallowing $61 million shortfall
Palm Beach Post
By Jennifer Sorentrue
07/15/10
South Florida water managers agreed Thursday to keep property tax rates flat next year -- a move that will require them to cut jobs and find efficiencies to cure a $60.9 million decrease in revenue.
The South Florida Water Management District governing board unanimously agreed to hold the district's four separate property tax rates at this year's level. Palm Beach County residents pay three of those four taxes.
The move came a day after about 100 Tea Party activists rallied outside the district's headquarters to protest the planned $500 million purchase of land owned by U.S. Sugar. The purchase is part of a plan, which Gov. Charlie Crist unveiled in 2009, to increase the flow of surface water through Florida's Everglades.
The activists said the district could give residents living in the 16 counties inside its jurisdiction a tax break if it doesn't move forward with the purchase. Many pled their case to the governing board at a workshop meeting Wednesday afternoon.
To help close the budget shortfall, the district has eliminated 132 contract workers, a savings of about $9.1 million. The district will save an additional $10 million by improving energy efficiencies in its buildings and using hybrid vehicles, spokesman Randy Smith said. Additional cuts will be made throughout the district to make up the rest of the gap, he said.
Under the $1.04 billion budget proposal, which would be finalized in September, the district's main property tax would remain at 25 cents for every $1,000 of taxable value. A second property tax used to control and manage water in the area around Lake Okeechobee would be set at this year's level of 28 cents. And a third tax, used to pay for Everglades restoration, will be held at 9 cents.
At those rates, the owner of a $150,000 home in Palm Beach County, with a $50,000 homestead exemption would pay $62.40 to the district next year.
Cara Capp, with Clean Water Action and one of only two people to speak about the spending plan Thursday, said the U.S. Sugar purchase was a critical to supplying South Florida with clean drinking water.
"This is a once in a lifetime opportunity," she said. "Our economy relies on the availability of clean water There is no single better investment this government can make than in restoration."
The district will hold two public hearings on the spending plan, on September 8 and 21.
