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Hernando Today

Millage Rate Goes Down, Tax Revenue Still Goes Up

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By TONY HOLT

Published: May 29, 2008

SPRING HILL - In the wake of a fourth consecutive millage decrease, there was a palpable feeling of dread coming from the fire district.

Eight weeks ago, employees were warned such cuts could lead to casualties in their workforce.

State-mandated budget restraints, along with a perceived loss in tax revenue, caused the Spring Hill fire chief to think he would need to eliminate 20 jobs and a dispatch center.

Then came the good news. There was plenty of money set aside for a future station renovation, not to mention the $200,000 saved for a future land purchase.

That money allowed for the chief and others to get creative. They shifted the funds to payroll and all of the jobs were spared.

The millage rate was cut substantially from 2003 to 2007. So how was there so much money available for those capital projects? How was the chief able to avoid cutting jobs?

"The property value has increased by such a remarkable rate," said Hernando County Budget Director George Zoettlein. "For a couple years, property values went through the roof. It had a lot to do with developers and builders and people flipping properties."

The assessed property value in Spring Hill for the 2007-08 fiscal year is greater than $4.2 billion. That's more than twice as much as it was in 2003.

That means tax revenue has increased considerably (77 percent) during those five years, even though the millage rate continued to be cut.

As of Thursday, Spring Hill Fire Rescue has collected $10,031,479 in revenues. That is nearly $1.8 million more than last year and there is still another month to go in the fiscal year.

The millage rate currently stands at 2.2686. In 2003, it was maxed out at 2.75.

One mill equals one dollar of every $1,000 in taxable property value.

In retrospect, fire commissioner Rob Giammarco is baffled over the threats of job losses in March.

"Where did they find all this money?" he asked sarcastically.

To him, too much emphasis is on the millage figure and not the revenue totals. It should not seem shocking or unrealistic to think the district could move toward a millage rate below 2.0, Giammarco said.

"I think the millage can be lowered and we can be more careful on what we spend," he continued. "I don't think that is being achieved."

On Wednesday, the district's board of fire commissioners voted to keep the millage capped at 2.75 rather than 2.50. They made the decision based on the existing ordinance, which was written in the early 1970s.

The first advocate for keeping the millage rate the same was fire commissioner George Biro.

Even still, he sees more cuts in the coming years. Given the current economic climate, the total assessed value is expected to drop significantly. The era of high tax revenues will come to an end by the time the 2008-09 fiscal year begins in July, Biro warned.

"For a while, revenue is going to be less," he said. "You also never know what's going to happen in Tallahassee. We had some peak years, but they're over."

Biro admitted much of the tax revenue went toward capital projects. The biggest of those projects was the renovation of the fire station at Spring Hill Drive and Whitewood Avenue. Some critics referred to it as the district's "Taj Mahal" because of its brick exterior and elaborate design.

He also cited the purchase of the district's first and only ladder truck in 2006.

"It was important for the district to keep a high level of service," he said. "We've always operated in the black and had the best possible department for our citizens."

Zoettlein pointed out Spring Hill Fire Rescue will always have a relatively large pot of money for a district its size. Unlike Hernando County Fire Rescue, which gets most of its money through a flat rate determined by the board of county commissioners, the district's services are mostly funded by property taxes.

"As property value inches up, they get more money," he said. "Our (department) is covering a much bigger area for less money."

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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