Financial Perfect Storm Force #3:
CPI CAP ON HOMESTEADED PROPERTIES
[This is the third and final posting in a series of postings written by IRB resident Kelly Cisarik on the subject of impending financial challenges facing IRB.]
In addition to less “Penny for Pinellas” funds and declining home values, the third force in IRB’s “Financial Perfect Storm” is the Consumer Price Index (CPI) capping of tax rates on homesteaded properties.
Homesteaded properties in IRB are approximately 50% of the tax rolls. These properties will not see the normal 3% tax increase for the Save Our Homes Cap in 2009 unless the commission votes to raise the millage rate again. This is due to how the federal government calculates inflation. The homesteaded properties will instead be capped at a .1% increase, equal to the federal government’s CPI for 2008.
I thought this article, published in the January 24, 2009 edition of the St. Petersburg Times on homesteaded property tax calculations would be of interest to our citizens.
CPI CAP ON HOMESTEADED PROPERTIES
[This is the third and final posting in a series of postings written by IRB resident Kelly Cisarik on the subject of impending financial challenges facing IRB.]
In addition to less “Penny for Pinellas” funds and declining home values, the third force in IRB’s “Financial Perfect Storm” is the Consumer Price Index (CPI) capping of tax rates on homesteaded properties.
Homesteaded properties in IRB are approximately 50% of the tax rolls. These properties will not see the normal 3% tax increase for the Save Our Homes Cap in 2009 unless the commission votes to raise the millage rate again. This is due to how the federal government calculates inflation. The homesteaded properties will instead be capped at a .1% increase, equal to the federal government’s CPI for 2008.
I thought this article, published in the January 24, 2009 edition of the St. Petersburg Times on homesteaded property tax calculations would be of interest to our citizens.
CLICK HERE to read "Save Our Homes Cap will bring property tax cheer to homeowners"
In the 2008/2009 budget our city still had an aggressive Capital Improvement Plan and aggressive schedule for vehicle replacements and road repaving. Now even with last year’s 36% millage rate increase we may not be able to finance these items without another tax increase.
Time is of the essence here. Our commission has not made any adjustments to its 5-year Capital Improvement Plan since they passed the budget last fall. We have a new city treasurer to advise the commission now, so there’s no reason for the commission to delay this further. It certainly should be on the agenda before the election but I suspect it will be neglected in favor of distractions like a new Golf Cart Ordinance.
I’d really like to hear the views of the three commission candidates on the City’s Capital Improvement Plans before casting my vote in March.
In the 2008/2009 budget our city still had an aggressive Capital Improvement Plan and aggressive schedule for vehicle replacements and road repaving. Now even with last year’s 36% millage rate increase we may not be able to finance these items without another tax increase.
Time is of the essence here. Our commission has not made any adjustments to its 5-year Capital Improvement Plan since they passed the budget last fall. We have a new city treasurer to advise the commission now, so there’s no reason for the commission to delay this further. It certainly should be on the agenda before the election but I suspect it will be neglected in favor of distractions like a new Golf Cart Ordinance.
I’d really like to hear the views of the three commission candidates on the City’s Capital Improvement Plans before casting my vote in March.
Kelly Cisarik
IRB
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IRB
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2 comments:
Nice work.
The commission has it’s focus elsewhere. This was exemplified by all of the trip-ups during the budget last year. Recently, the Bee quoted Commissioner Wollen saying “I am proud of the hard decisions we have had to make as a commission, I look forward to helping to move the city forward in a positive way as we work to live within the constraints of the new fiscal realities while finding ways to provide the level of service our residents expect.”
Raising taxes was their only solution. What was so hard about that?
Can anyone name one thing this Commission has acomplished that is anywhere close the magnitude, difficulty and importance that the Commissions prior to the elections of dumb, dumber and Jose?
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