A Pasco County budget workshop provided a preliminary look at the upcoming fiscal year, but County Administrator Dan Biles told the county board he’s holding off on any recommended initiatives until he has more numbers.
“We do not have the preliminary assessed values yet from the property appraiser,” Biles told the county board at a May 24 workshop. So, he told the board, the workshop would focus on “trends and what it looks like going forward.”
Robert Goehig, the county’s budget director, told the board that the scenario the county is working with is based on the taxable assessed values increasing at a rate of 10.8%, the same rate as last year.
Goehig noted that’s “not a crazy assumption, given the amount of construction going on in the county.”
Based on the 10.8% rate, revenues would increase by about $27.2 million, of which 40% — or about $10.9 million — would be allocated to the Pasco County Sheriff’s Office, the budget director said.
“After that, if we deduct the payments to the taxable increment finance trust fund and for the Community Redevelopment Agencies, that’s $3.63 million.
“That leaves $12.7 million or so for the board to spend on new initiatives,” the budget director said.
The county’s Fire Municipal Services Tax Unit is expected to yield 12.6% in additional revenues, which will provide $7.3 million in additional revenues for initiatives.
Goehig also outlined a number of fire rescue enhancements under consideration. They include:
- Rescue 223 in Land O’ Lakes, at State Road 54 and U.S. 41
- Rescue 226 in Wesley Chapel
- Two peak-hour rescue units to reduce rescue response times
- 25 additional full-time equivalent positions
- New furniture and equipment for fire stations
The workshop also covered some proposed 2023 capital expenditures. Those include building renovations, information technology hardware and software, athletic field renovations, drainage improvements, park maintenance, and the renovation of the tax collector’s office at the West Pasco Government Center, among other things.
The county has received 140 business plan initiatives from department directors, but Biles said he won’t be making any recommendations on those until he has more information from the property appraiser’s office, which is expected June 1.
Biles said once that information is available, he will have individual sessions with board members to discuss potential budget items. If the board wants additional group discussion on the budget, time can be set aside at a June meeting, he said.
Goehig said there are some expenses the county must cover in fiscal year 2023.
For instance, the cost of fuel has gone up. Last year, the county budgeted it at $2.65 a gallon. This year, the county is budgeting it at $3.65 a gallon. It would budget more, but the county doesn’t pay taxes on fuel, Goehig said.
The county also is feeling the impacts of inflation, which is currently at about 8.5%, Goehig said.
“That is really hitting our departments that rely heavily on building, vehicles and IT (information technology). So, those costs continue to escalate,” the budget director said.
He also noted that the county has a compensation and classification study underway, which will result in recommended salary adjustments.
That state is increasing salaries by 5.38, Biles said.
“So, we kind of set that as a floor. We want to at least be equivalent to what the state gave state employees,” he said.
The county salary study is expected to be completed in mid-July.
That study will base adjustments based on what employees do and the market rate.
“I expect the average to be over 5.3, probably somewhere under 7,” Biles said, referring to expected percentages of wage increases.
The county also must cover increased costs for employee retirement contributions, Goehig said.
Some departments will be faced with rising costs.
For instance, Goehig expects Fire/Rescue to experience a 13.3% increase, largely because of fuel costs and equipment maintenance expenses.
Information technology is expected to face a 6.4% increase, due to increases in software contracts and inflationary impact on hardware, he said.
The county also is facing increased costs for outside spending, including an expected 7.5% increase for Medicaid, which is a state-imposed cost on the county, Goehig said.
Commission Chairwoman Kathryn Starkey told her colleagues the county needs to find a way to increase funding for public safety.
“We all love Pasco County. It’s very inexpensive to live here. That comes at a price. And, at what point do we have a responsibility to fund fire and safety at a higher level. I just want you to think about that,” she told her colleagues.
The county board is expected to set to adopt the Truth in Millage tax rate at its July 12 meeting. This is the process used to inform property owners what the maximum ad valorem millage rate is that could be adopted by the board in September. The board cannot adopt a higher rate than the one it specifies in July, but it can reduce it.
Pasco County Budget
Preliminary budget recommendations from County Administrator Dan Biles, include:
- No increase in the operating millage rate of 7.6076
- No increase in the Fire Municipal Services Taxing Unit millage rate of 1.8036
- No change to the stormwater assessment (The combined rate of that is about 2.7%)
- Increased water and wastewater rates, in accordance with the four-year rate resolution
Published June 01, 2022
