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North Pinellas may lose less tax revenue than expected

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By Mark  Schantz | The Suncoast News

Published: May 30, 2009

PALM HARBOR - The collapse of the Florida housing and real estate markets is continuing to depress property tax revenue for North Pinellas cities and special districts but other parts of the county may fare even worse.

According to the latest estimate of property tax revenue from Pinellas County Property Appraiser Pam Dubov, a number of factors have been conspiring to drive down real estate values around the county.

High vacancy levels are forcing commercial property owners to lower rental rates, according to the revenue report from the Property Appraiser's Office. An unprecedented number of mortgage foreclosures and distressed house sales are placing a damper on the residential real estate market.

The revenue decrease in North Pinellas, however, may be less than anticipated. The beachfront cities in southern Pinellas are likely to see larger revenue reductions, according to the appraiser.

Tarpon Springs City Manager Mark LeCouris recently said he could live with an 11.6 reduction in revenue from property taxes without layoffs by further trimming city spending in other areas.

Oldsmar, which has experienced just a 5.6 percent reduction in its property tax base, is the city in the county facing the lowest estimated revenue reduction. Commercial growth can still be seen along the Oldsmar segment of Tampa Road.

Dunedin is facing a 12 percent reduction and Safety Harbor a 9 percent dip.

The Palm Harbor Library and Palm Harbor Parks and Recreation will lose an estimated 10 percent in property tax revenue, not the 13.5 percent previously forecast, according to the Property Appraiser's Office.

The special property taxing district the Palm Harbor Community Services Agency administers provides revenue to the library and recreation unit.

Palm Harbor Library Director Gene Coppola said he is holding his breath until the Property Appraiser's Office issues its final tax revenue figures, in July. The latest estimate is much better than anticipated, he said.

Earlier this year, he was warned to expect up to a 15 percent reduction in revenue, then more recently the 13.5 percent decrease.

If the library only suffers a 10 percent revenue drop, Coppola said, he won't have to reduce operating hours and can fill one of four positions he planned to leave vacant in the coming fiscal year.

Coppola is also preparing the fiscal 2010 budget for the East Lake Community Library because that library does not have a director. The East Lake Library is still facing a 13.5 percent revenue reduction, he said.

The appraiser is now projecting Palm Harbor Fire Rescue will see a 10 percent revenue loss, which is less than previously projected. The projected revenue loss of the East Lake Fire & Rescue is now 10.6 percent. Each fire department is funded by a special district.

The beach cities fared much worse in the latest revenue estimate. Madeira Beach must absorb a 15.7 percent revenue reduction for the fiscal year beginning Oct. 1, followed by Indian Shores with 15.5 percent, Indian Rocks Beach with 15.4 percent and Belleair Beach with 14.1 percent.

Mark Schantz can be reached at 727-815-1075 or mschantz@suncoastnews.com.

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