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TMCNet: Dania Beach leaders debating how to cover $3.5 million shortfall

[July 25, 2008]

Dania Beach leaders debating how to cover $3.5 million shortfall

(South Florida Sun-Sentinel (KRT) Via Acquire Media NewsEdge) Jul. 24--Facing a $3.5 million shortfall, commissioners on Tuesday will discuss whether to raise taxes or borrow from reserves to balance next year's spending proposal. City Manager Ivan Pato, who has proposed eliminating positions and curtailing spending, said the city would lose nearly $800,000 in revenue next year because of Amendment 1, the mandated tax cut approved by voters statewide.

Budget proposed for this year: $53.55 million -- $41.85 for general expenses and $11.7 in capital projects.

Budget last year: $62.55 million, including the $38.34 million general fund budget

Percent change: 14.38 percent decrease

Projected property tax collections: $17.92 million

Percent change in projected property tax collections: 1.92 percent increase

Total tax rate proposed this year: Rate would remain at $5.4044, which totals $5.5444 with a 14-cent debt service rate. But the city could adjust the current rate to $5.6829 to reflect the state's personal growth income rate of 4.15 percent. Doing so would help make up for the $3.5 million shortfall.

Tax rate last year: $5.4044, without a 13-cent debt service rate.

Impact on a house valued at $275,000 with a $50,000 homestead exemption: An owner would pay $1,247.5, a $182 savings from last year.

Impact on a non-homesteaded house valued last year at $275,000: Because the property would have depreciated in value by 5 percent, an owner would pay$1,448.5 -- about $270 less than last year.

What is being cut: Seven positions, including three vacancies, to save $400,000. Allowances for commissioners, the city manager and department heads would be reduced by $1,200 each. Several capital improvement projects would be deferred to 2010, and funding eliminated for grant writing contracts and the July Fourth celebration.

What else changes: Business license fees would increase 5 percent; garbage collection would rise from $241.92 to $244.8 a year; and parking permits, from $20 to $25 for seniors living in the city and from $35 to $45 for all other residents. The rate for out-of-state seniors would double to $40, but would remain $60 for younger out-of-state residents.

What's next: Commissioners meet at 8 a.m. Tuesday to discuss the budget proposal. They will then hold a special meeting to set fire-rescue assessment and other fees.

To see more of The South Florida Sun-Sentinel or to subscribe to the newspaper, go to http://www.sun-sentinel.com/.

Copyright (c) 2008, South Florida Sun-Sentinel
Distributed by McClatchy-Tribune Information Services.
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