Higher Millage Rate in Store For Safety Harbor?

The commission hosted another budget workshop before its regular meeting Monday night, and making up the deficit for the 2013-14 fiscal year was the main topic of discussion.

Facing a budget shortfall in excess of $600,000, city leaders are trying to come up with ways to reduce the deficit without dipping into reserves, a practice they have been employing for years but one that can eventually lead to trouble.

"We can keep on this path for five or six years or so, but then we're going to get to the cliff," Mayor Joe Ayoub said. "So we can wait and make drastic changes, or we can make some changes now so we never get to the cliff."

The changes that were discussed involve two areas: cutting expenses and raising the millage rate.

City Manager Matt Spoor presented a list of potential cuts that would lop $352,970 off the city's $13.1 million general fund expenses.

Those cuts included: eliminating the city's fireworks display ($24,600); changes to city employee health benefits ($95,800); and cutting the traffic patrol deputy ($103,340).

Of all the proposed cuts, the possibility of eliminating the fireworks was the item that drew the most debate.

"I don't want the fireworks to go away," Commissioner Nancy Besore said. "Our nation's birthday is huge. I will be very sad if we ditch the fireworks."

The other commissioners agreed, but suggested coming up with a solution that could be beneficial to all.

"I'd would like to see us not do away with the fireworks, but revamp the that way we do it," Vice Mayor Nina Bandoni said. "We could have one or several sponsors...or have various charges for events that go on down there."

Following the talk about reductions, the commission focused on the millage rate for next year.

While Safety Harbor has not raised its rate in three years, some officials believe it may be necessary to do so this year in order to bring in more revenue.

"If it's necessary to raise it to keep the quality of life we have, I agree a raise is needed," Commissioner Cliff Merz said.

Based on projections, Spoor suggested raising the current rate from 3.3808 to 3.7104, which represents an increase of 9.7 percent and would add $293,920 to the general fund revenue.

But after deliberating, the commission agreed to look at raising the rate to 3.7343, which would bring in an additional $317,045.

"I think it would be a better alternative to bring in the revenue we need...than to continue on the path of spending out of reserves," Mayor Ayoub said.

Not every commissioner was on board with the decision, though.

"I can't (agree)," Besore said. "I would've been there, pre-street light fee, but I can't. I'm back at 3.3808 and taking from reserves."

The commission will discuss the potential changes again on July 29 before the issue goes to the public hearing phase in September.