Tallahassee Commissioners are moving forward with plans for a property tax hike. While commissioners in support of the increase say more money is needed to improve public safety, others argue more effort needs to be made to find savings before raising taxes.
Commissioners have voted in favor of a tentative property tax rate of 4.5 mills. City staff says the increase would equate to an extra $7.50 a month for an average home in Tallahassee. Commissioner Jeremy Matlow says for some people that’s a significant difference.
"What we need to be focused on as a local government are the people living on the margins,” Matlow says.
He argues raising property taxes means increasing the cost of housing and sends "signals to landlords all across the community that they should raise their rates as well.”
Matlow doesn’t think the city has worked hard enough to find savings and has turned too quickly to raising taxes as a solution to fill a budget hole.
“Certainly, I think for anyone looking to fill a $9-million deficit, that’s daunting, Matlow says. "But the question is where can we cut $100,000, where can we cut $500,000, where can we cut a million dollars?"
During Wednesday’s meeting Matlow floated suggestions such as considering a smaller pay increase for city staff earning more than $100,000, reducing overtime, reducing some travel expenses or rethinking things like sponsorships and advertising. He estimates those ideas could add up to half the deficit.
Mayor John Dailey pushed back on the ideas.
“I get it. You can score political points by ticking this off, and ticking that off, but that’s not going make the fiscal impact of the question before us of a proposed increase in millage or not," Dailey says.
Dailey says only about 20% of the salaries of the highest earning staff come from the city’s general revenue fund. He says for the cuts to help make up the deficit the city is facing, the reductions would be "drastic" and would have to be made in the right part of the budget. He wonders what those cuts would be.
“Are we going to shut down our parks three days a week because Parks and Recreation is fully funded out of general revenue? I tell you what, why don’t we cut the senior center half the year and not provide any services. That is paid for 100% through general revenue," Dailey said.
Matlow maintains that if the city wants to find savings it should look in every department across the board. He says every dollar spent is a dollar that must be budgeted—regardless of what pot of money it comes from.
“Let’s not try to scare this community about what fiscal responsibility looks like. We can accomplish basic services and work within our means," Matlow says.
Meanwhile Commissioner Curtis Richardson says he thinks the increase is needed. Raising taxes gives the commission more money to spend on things like more police officers. Richardson says fighting violent crime needs to be the commission’s first priority. He’s says it’s important to his neighbors on the city’s South Side.
“Where a young man was shot and killed within walking distance from my house on our church grounds. Public safety is an important issue for them. No we can’t police our way out of it, we say that all the time, but it certainly helps to have an officer available when things like that happen," Richardson says.
The city’s proposed budget includes an increase for the police department including funds for additional officers. Daily, Richardson and Commissioner Dianne Williams Cox voted in favor of the tax hike. Matlow and Commissioner Jack Porter voted against.
The board also discussed a request to allocate an additional $5-million into an affordable housing trust fund. Commissioners voted against that proposal, but agreed to work together with county commissioners on the local Blue Print board to find creative ways to use economic development dollars that Dailey believes could help address the city’s affordable housing needs.
He says the conversation should start with the city and county's joint affordable housing advisory committee.
“Charge them with coming up with a plan while the Blue Print Intergovernmental Agency formally sets aside the money through the economic development money , which I believe we can because we are going to be building housing and adding to the economy," Dailey says.
The property tax rate isn’t set in stone quite yet. It will be finalized with the budget in September. Even if commissioners don’t go through with plans to increase the tax rate, tax bills are expected to go up. That’s because property values are increasing.
