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Hernando Today

Council Drops City Millage Rate

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By Tony Marrero

Hernando Today

Published: September 5, 2008

Brooksville - City residents will have a few more dollars in their accounts after paying their property tax bills if the city council sticks with a millage rate it adopted Wednesday night.

The council late Wednesday approved a rate of 6.069 mills – a quarter mill less than last year's rate, which city staff had used to balance this year's $9.02 million general fund budget.

A mill is $1 for every $1,000 of assessed value. At that rate, a property worth $150,000 with a $50,000 homestead exemption would see a tax bill of $606.

The new rate will lop off about $144,000 from the general fund budget. Other changes approved by the council will further reduce what had been the city's estimated total budget of $32.5 million.

The council went with a staff recommendation to reduce the city's unallocated reserve fund to a little more than $907,000 – a cut of about $266,000 – and use that money to allow for the lower ad valorem rate. The reserves still amount to about 12 percent of the general fund, on the high end of the 5 to 15 percent range recommended by public policy experts, City Manager Jennene Norman-Vacha said.

But the council also agreed with Norman-Vacha's plan to make significant changes in city administration.

The existing administration and human resources sections will no longer be standalone departments, but instead work directly under the city manager. The city clerk had also served as director of administration position, overseeing human resources and the management information systems department, which is now being contracted out to the county.

Now the position, currently held by Karen Phillips, will revert back to a traditional city clerk role, "with an appropriate reduction in salary," Norman-Vacha wrote in memo to council.

Phillips' salary will drop from $64,605 to $49,293.

"It was a matter of functionality, what we had and what we need and the difference between the two," Norman-Vacha said Thursday.

The changes also include the elimination of an administrative assistant position currently filled.

The city also will cut the number of mechanics in the fleet maintenance division from three to two. A vacant park attendant position will not be filled.

"It's very difficult to make these decisions," Norman-Vacha said. "It's not about performance, it's strictly the right level of staffing."

The council approved a recommendation to create a new position for Norman-Vacha's staff. The management analyst would support the city manager by tackling a range of issues, from studying the city's current operational procedures to securing state and federal money for city projects.

Norman-Vacha said the analyst would help to "assure the most effective and efficient delivery of services" to city residents. The position would be created without spending extra money by using money from the city's vacant redevelopment coordinator position.

Mayor David Pugh said Thursday he was impressed with the lean budget and the recommendations from by Norman-Vacha and other staffers.

"It just goes to show you that with proper management and oversight, good things happen in the city, and that's exactly what happened," Pugh said.

The council also approved another measure that will likely translate to savings for residents: capping water and sewer rate increases at 3 percent each year. The city currently hikes water and sewer rates according to the consumer price index. Some years that index tops 4 percent.

The city also is changing health insurance plans. The new plan no longer features health reimbursement accounts for city employees – a savings of more than $22,000 next year – but the benefits of the plan are better, Norman-Vacha said.

City employees will not get a cost-of-living raise this year despite the support of two council members.

Council members Joe Bernardini and Lara Bradburn wanted to see city workers get a 2 percent raise but were outvoted.

"I think we could have done that for the employees," Bernardini said Thursday. Bradburn called it "disappointing," arguing that current staff is doing more to compensate for positions cut or left vacant.

Pugh said he hoped employees understand that the current economic crisis forced him to pass on the raise for the sake of helping taxpayers and avoiding more job cuts.

"We serve our citizens," he said. "Without them there is no government."

The city will save some money next year by capping at $7,000 the amount of user fees waived for nonprofit groups seeking to hold events at city facilities.

The council tabled a discussion on a proposal by Bradburn to stop adding fluoride to the city's water supply. The issue is expected to be discussed at an upcoming meeting.

The next budget hearing is slated for 7 p.m. on Sept. 15 at City Hall, 201 N. Howell Ave.

Reporter Tony Marrero can be reached at 352-544-5286 or lmarrero@hernandotoday.com.

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