Homestead residents can still comment on the budget at a hearing later this month
By Christina Veiga
cveiga@MiamiHerald.com
George Gretsas, City Manager, pictured
Homestead City Council members on Tuesday tentatively approved a budget with slightly lower tax rate.
Under the proposed rate, residents would pay $6.24 per $1,000 of taxable property. That’s compared to a tax rate of $6.29 this year.
The tax rate and budget still need to be approved at a second public hearing before becoming final.
Under the new proposed rate, the owner of a median home assessed at $77,500 and taking the standard homestead exemption would pay $172 in property tax to the city.
Whether a particular homeowner pays more or less tax will depend on whether their home’s taxable value has increased. Since the tax cut is less than 1 percent, a homeowner whose property value goes up by 3 percent would pay a little more in tax to the city
Council members also gave the first OK for $38.8 million budget.
Homestead’s budget took another hit from tumbling home values. Home prices in the city decreased about 4 percent in 2011, according to the county property appraiser. Since 2008, Homestead has lost about 55 percent of its tax base, said City Manager George Gretsas.
“That would be a devastating impact on any community, but you’ve been able to hold the ship together,” he told council members.
Not only does Homestead face a shortfall, but costs are up, too. The city finds itself responsible for two facilities the police department was previously running using forfeiture money. The money, which is collected from criminals’ assets when the police help solve a crime, won’t be enough to run the Roby George and Phichol Williams parks this year. The Parks and Recreation department has more than $600,000 budgeted in the upcoming fiscal year for the facilities.
While the budget doesn’t tap into the city’s reserves, it does siphon off $2.25 million in profits from money-making funds such as electric services and solid waste. Homestead’s budget also counts on more than $9 million in “interfund transfers” this fiscal year. The reimbursements are for administrative work by city officials for the utility departments, Community Redevelopment Agency and Customer Services.
Gretsas repeated a familiar warning about the city’s finances: “There’s only so many years you can go,” with lower revenues, higher costs and a steady tax rate, he said.
Under the proposed rate, residents would pay $6.24 per $1,000 of taxable property. That’s compared to a tax rate of $6.29 this year.
The tax rate and budget still need to be approved at a second public hearing before becoming final.
Under the new proposed rate, the owner of a median home assessed at $77,500 and taking the standard homestead exemption would pay $172 in property tax to the city.
Whether a particular homeowner pays more or less tax will depend on whether their home’s taxable value has increased. Since the tax cut is less than 1 percent, a homeowner whose property value goes up by 3 percent would pay a little more in tax to the city
Council members also gave the first OK for $38.8 million budget.
Homestead’s budget took another hit from tumbling home values. Home prices in the city decreased about 4 percent in 2011, according to the county property appraiser. Since 2008, Homestead has lost about 55 percent of its tax base, said City Manager George Gretsas.
“That would be a devastating impact on any community, but you’ve been able to hold the ship together,” he told council members.
Not only does Homestead face a shortfall, but costs are up, too. The city finds itself responsible for two facilities the police department was previously running using forfeiture money. The money, which is collected from criminals’ assets when the police help solve a crime, won’t be enough to run the Roby George and Phichol Williams parks this year. The Parks and Recreation department has more than $600,000 budgeted in the upcoming fiscal year for the facilities.
While the budget doesn’t tap into the city’s reserves, it does siphon off $2.25 million in profits from money-making funds such as electric services and solid waste. Homestead’s budget also counts on more than $9 million in “interfund transfers” this fiscal year. The reimbursements are for administrative work by city officials for the utility departments, Community Redevelopment Agency and Customer Services.
Gretsas repeated a familiar warning about the city’s finances: “There’s only so many years you can go,” with lower revenues, higher costs and a steady tax rate, he said.
Read more here: http://www.miamiherald.com/2012/09/07/2989921/homestead-budget-has-no-tax-increase.html#storylink=cpy
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