Growth Helps Auburndale Finances

AUBURNDALE | Commercial growth and steady annexations have kept the city out of the poor house for the 2008-09 fiscal year.

Nearly half of the proposed $46.3 million budget comes from 11 revenue sources and those extra sources will mean city officials won't have to rely so heavily on property tax revenue to make ends meet.

"It will still be a cautious and challenging year given the other limited revenues that come into our budget," said City Manager Bobby Green. "If we didn't have that growth to get us to the same dollar amount, we would bring in less (property tax revenue)."

The property tax rate for the fiscal year that begins Oct. 1 is $3.33 per $1,000 of assessed taxable property value.

This will bring in $3.5 million to the city.

Because property values have gone down, the rollback rate was set at $3.48 per $1,000 of assessed taxable property value.

The low home values is a result of Amendment ,1 which raised the homestead exemption to $50,000 for homes valued at $75,000 or more for property tax purposes, as well as the weak real estate market.

Now under state law, the first and third $25,000 increments of the assessed value of a home are not taxed. For instance, a home valued at $75,000 would be taxed as if it were valued at $25,000, while a home valued at $50,000 would also be taxed as if it were valued at $25,000.

Green said he doesn't anticipate the city going with the rollback rate as it navigates the next few months through the budget process.

That's in part because of the 11 revenue sources, which includes the $3.5 million that will be collected from property taxes.

Those projects that are planned for the new fiscal year are based on those funding sources, Green said.

"If we don't have it, we don't spend it," Green said.

Some of the 11 sources include:

$1.9 million in reserve funding from the sale of the Auburndale Speedway that will pay for a new community center and gym.

$6.2 million from Polk County to pay for completing the baseball facilities at Lake Myrtle Park.

$4 million from the county to pay for completing soccer facilities at Lake Myrtle Park.

$1.2 million from the Community Redevelopment Agency to relocate and construct a new tennis facility on Wiley Drive.

$87,127 in Community Development Block Grant funds for improvements to the New Horizon Housing Development, Earl Wright Park, Canal Street retention pond and bus stop shelters in the CDBG target area.

City officials' cautionary approach to the budget is a result of the domino effect of the economy.

For instance, three years ago the city collected $386,867 in fuel tax revenue, but as of March this year, the city had collected $177,173.

Officials had expected $400,000 for the current budget, but Green said he doubts the city will hit that mark.

As a result, officials have lowered the expectations for next fiscal year to $375,000.

Fuel costs have become one of the city's biggest expenses.

As of March, for example, the city spent $52,885 and is expecting to surpass the $85,000 that was budgeted in fuel cost for the department before the fiscal year ends Sept. 30.

It is possible for the Police Department to spend more on gasoline this year than the $98,853 spent three years ago.

As a result, the city is proposing $110,000 in next year's budget for the department's fuel expenses.

Green said his staff did the best it could to estimate fuel expenses. To prepare for the unexpected, city officials are looking at cost-cutting measures, such as replacing the Crown Victorias that police officers drive with Impalas to save on fuel.

Pay raises for city employees have been consistent and that will continue when they receive a 3 percent cost-of-living adjustment in the new fiscal year, along with longevity pay and step pay for some employees.

There are no new positions being proposed for the new fiscal year.

City commissioners will dig deeper into the budget Aug. 11 when Commission Day activities are scheduled.

Public hearings on the budget are scheduled for Sept. 8 and Sept. 22 at 7 p.m. at City Hall.

[ Merissa Green can be reached at merissa.green@theledger.com or 863-401-6968. ]