It’s still early in 2018, but Pasco County is taking the first steps toward planning its fiscal year budget for 2019.
Pasco County officials are looking to hold the line on expenses, even as property values are expected to increase between 7 percent and 8 percent.
Essentially, they want a flat balanced budget that has no increase in the millage rate.
The Pasco County Commission received an update on anticipated revenues and expenses at a Feb. 13 workshop in New Port Richey.
The county is taking a conservative approach to the 2019 budget because of the potential for a referendum on the November ballot that could cost the county between $10 million and $12 million.
The fire rescue fund also could lose as much as $3 million.
The outcome on the referendum will be crucial.
Voters will have the chance to approve a $25,000 increase in the homestead exemption. County officials expect the referendum to pass. Revenue loss will be felt beginning in 2020.
Other revenue sources will grow, including tourism taxes and stormwater fees. Both of those were boosted by the Pasco County Commission in 2017.
County officials say increasing population means more services are needed for residents, including parks and libraries, roads and stormwater.
Those costs cut into the revenue increases.
Pasco County Administrator Dan Biles believes that Pasco will be able to offset the revenue shrinkage better than most Florida counties.
“I don’t expect a hiring freeze or layoffs, just yet,” Biles said.
But, the county will proceed with caution.
“We don’t want to take on any new expenditures that we can’t sustain the next year,” said Bob Goehrig, the county’s budget director. “That’s sort of our marching order.”
Initial county projections for property taxes estimate about $13 million in new revenues. But, about $4.1 million will be paid out to community development areas that receive set-aside tax dollars to support various projects.
The remaining $9.2 million will be split evenly between the Pasco County Sheriff’s Office and the county’s other departments and offices, with each receiving about $4.6 million.
Other factors impacting the 2019 budget include a slower rate of increase in the half-cent sales tax revenues and increased costs for pension contributions, health care, worker’s compensation, and property/casualty insurance.
The county also anticipates paying $3 million to $6 million annually for temporary housing for jail inmates on site at the detention center in Land O’ Lakes, or at jails in other counties.
Plans are underway to build a 1,000-bed expansion at the overcrowded facility.
Potential funding for that project would come from a bond issue, not general revenues. The bond issue requires voter approval.
The county’s tourism tax revenues are increasing, as a result of an increased tourism tax, from 2 percent up to 4 percent last year, and a general increase in tourism.
Six new hotels are either open or under construction.
The increased tourism tax is expected to boost revenues from slightly more than $1 million last year to about $3.3 million by 2019.
Another sign of Pasco’s growing population and improving economy is the increase in building permits.
In 2016, the county received a little more than $6 million in fees. That increased to about $8.5 million in 2017, and is expected to be more than $9 million in 2019.
But, Goehrig said, “The fees are designed to recover expenses. This isn’t money we’re putting into the bank.”
Published February 21, 2018
