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Suncoast Pinellas News

Poor Balancing Act

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FROM A READER

Published: January 3, 2009

Editor:

May I point out that "taking $1 million from the reserve account" is not exactly "balancing the budget." It is more like spending savings to cover current liabilities. As any family can tell you, that will not work forever.

Over the past 10 years or so the Tarpon Springs city budget has roughly doubled, to more than $50 million. This increase has been much greater than the rate of inflation. There must be some way to save the additional 0.02 percent that $1 million from reserves represents.

Economists are forecasting that housing prices in Florida will be slow to recover. Prudence would seem to indicate we prepare for an extended period, say five-plus years, of reduced tax revenue. In addition, the reserves may be needed for a really "rainy day."

Finally it's interesting to note that the $1 million budget shortfall is just about what the proposed local Wal-Mart Supercenter would have generated in tax revenue.

Robert W. Wilson
Tarpon Springs

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