VERO BEACH — The Vero Beach City Council voted Tuesday evening to approve a $19.4 million budget and to charge residents about 1 percent more in property taxes to fund it.
The council voted 3-2 to keep the property tax rate the same at 2.0336 mills, which translates to $2.03 for every $1,000 in taxable property value. But with property values on the rebound countywide, most taxpayers will see a slight increase in their tax bills.
Both Councilman Dick Winger and Vice Mayor Tracy Carroll, the two officials running for re-election in November, supported the staff’s budget and the tax rate that would bring in nearly $200,000 in extra cash to city coffers.
A homeowner who has seen the taxable property value after Homestead exemption go up 3 percent from $300,000 to $309,000 would expect to pay an extra $18 in property taxes this coming year over last year.
The city set out to cut its budget by 10.9 percent across the board but ended up falling short of that goal, necessitating the slight increase in tax bills for most homeowners.
Assessed property values are only beginning to catch up to increases in market values as the complex process of establishing assessed values has a time lag of more than a year.
Real estate transactions closed between Jan. 1 through Dec. 31, 2012, were used to calculate property values which determined the values on TRIM (Truth In Millage) notices received in August. Rebounds in home prices experienced in 2013 will not be figured into assessed values until August 2014.
The city could have approved what’s called the roll-back rate of $2.01 per $1,000 of taxable value, which means the tax rate that would be charged to generate exactly the same amount of taxes raised in the current year. But, as Mayor Craig Fletcher put it, to have a little “flexibility” in the budget, the council approved the $2.03 rate instead.
“It’s still clear as mud on exactly how the process should go, I’m kind-of partial to going towards the rollback rate,” said Councilman Jay Kramer, adding that he would rather see anticipated expenses go into the budget than to have what staff calls “an unappropriated surplus.”
City Manager Jim O’Connor explained that he and the city’s labor attorney are still negotiating with employee unions about the terms of their contracts, that the city has reached an impasse with the Coastal Police Benevolent Association and is still working with the Teamsters. In order to negotiate in good faith, O’Connor said, the city needs to have some minimal surplus to cover terms that may come up in contract talks.
Finance Director Cindy Lawson concurred with O’Connor that the $227,000 surplus is prudent, despite concerns expressed by Vice Mayor Tracy Carroll and Councilman Jay Kramer.
Kramer joined Councilwoman Pilar Turner in voting against the millage rate because he said he would rather see the city approve the roll-back rate of $2.01 and adjust the budget accordingly to afford additional items, rather than rely on a budgeted surplus.
Turner, who throughout the city’s summer-long budget process voted against her peers when they repeatedly put spending back into the city budget, restoring 15 positions slated to be cut, voted against both the tax rate and the budget.
Kramer voted for the budget, but it still came down to a 3-2 vote as Fletcher voted against the budget.
Turner addressed critics who have accused the council of slashing city services and acting with disregard to city employees.
“Despite whatever cuts people think were made, we’re not even 1 percent less than last year’s budget,” Turner said.
Still to be worked out by Police Chief David Currey is how to retool his department budget in light of the retirement of Capt. Keith Touchberry to assume the position of Fellsmere Police Chief.
The council instructed Currey to stay within his 72 allocated positions and his budget cap, but to figure out how best to divvy up the funds to meet staffing needs. Currey said he needs both a clerical person and a crime-scene investigator.
The second and final public hearing of the budget is set for 5:10 p.m. Tuesday, Sept. 17 in council chambers at Vero Beach City Hall.
