County faces $2.5M drop in general fund money

Hernando County is looking at a $2.5 million reduction in general fund money next year if the projected 5 percent loss of residential property value revenue is accurate.

That's assuming that the current general fund millage rate of 5.6279 stays the same.

Of that $2.5 million, about $1.1 million is attributed to sinkhole home devaluation.

The overall budget, which includes all taxing districts, would see a $3.5 million decrease, said Budget Director George Zoettlein.

That ominous news came out of Tuesday's budget workshop that kicked off discussion of the 2013 fiscal year budget.

Commissioners varied on ways to make up the projected deficit.

County Commissioner John Druzbick said he is against borrowing money to make budget.

"We can't keep on taking from the checkbook and borrowing money," Druzbick said. "I am very strongly in favor of just using recurring revenues."

Last year saw a 10 percent drop in property values, which forced commissioners to cut some services, lay off employees and consolidate functions.

This year, although the projected drop in values is not as high, commissioners have said they will still have to resort to harsh measures to continue providing the same level of services with fewer dollars.

Commissioners spent much of Tuesday's three-hour workshop focused on solutions to plugging the hole of lost money resulting from sinkhole claims.

County Property Appraiser Alvin Mazourek told commissioners Tuesday that the sinkhole properties lose 50 percent of their assessed value right off the top and he is powerless to do anything about the problem because he is mandated to appraised market value based on sales.

Even after the property is repaired, the home is devalued 10 percent, despite the likelihood that the home is likely foundationally more sound than other non-sinkhole homes.

"It's an epidemic," Mazourek said. "I don't know what can be done (unless) the legislators change the law and define what a sinkhole is."

John Emerson, chief deputy with the property appraiser's office, said only about 40 percent of people who report sinkhole activity on their property end up repairing their homes.

Also at Tuesday's workshop:

• Director of Public Safety Mike Nickerson told commissioners he will propose a town hall meeting to discuss funding for Spring Hill fire and rescue services.

Nickerson said he favors a mix of ad valorem and tax assessments but wants to hear from business owners and taxpayers.

In a special referendum last year, Spring Hill voters said they did not want to give the five-member fire board taxing authority. Facing insolvency, the only option was for the county to take over operations and management.

But Spring Hill residents have been paying for service through their ad valorem taxes while the county residents have a flat rate for fire and a millage rate for EMS service.