Half the city's property owners would see a slight drop in real estate taxes -- and the other half a sharp increase .

FORT LAUDERDALE · Half the city's property owners would see a slight drop in real estate taxes -- and the other half a sharp increase -- under the city manager's proposed budget unveiled this week.City Manager George Gretsas proposes the city cash in again on major increases in property values by bringing in an extra $18 million in tax collections to help support an overall $503.5 million spending plan.
The 13 percent increase in expected property tax collections, to $133.4 million, would be borne by only half of the city's property owners: those who own seasonal homes, rental units, industrial space or commercial businesses and new properties on the tax roll.The rest of the property owners, 50.1 percent of them, are protected by Save Our Homes, a state constitutional amendment that limits tax increases on a person's primary residence. Those owners would see a slight reduction in taxes under the city's proposed budget.Gretsas said he's trying to maintain a "slow and steady" approach to taxing and spending in a city that only three years ago almost ran out of money."Drastic anything ends up creating instability," Gretsas said.He focused on "quality of life" issues like reducing crime, cleaning the beach and getting rid of nuisances such as loud motorcycle noise, aggressive panhandling and unsightly newspaper boxes. He is also seeking better services from public works, code enforcement, neighborhood services and the building department.Gretsas emphasized his budget's proposed 4 percent reduction in the tax rate, to $5.23 on every $1,000 of taxable value, because it would bring a little financial relief to permanent, homesteaded residents.But the city's property values increased some 19.5 percent this year. When that's factored in, the proposed tax rate amounts to an increase for almost half the property owners, who don't have homestead protection under Florida law.Spending would also increase.Looking only at the $308.9 million operating budget, or general fund, which pays for police, fire and other essential services, the spending is proposed at 15 percent more than last year's."It's too much," said Mayor Jim Naugle. "I'm going to be looking for ways to reduce spending."Commissioners will decide Tuesday whether to accept his draft spending plan for the budget year that starts Oct. 1. But their vote is only tentative. The public would have time to sound off on the ideas between now and the final votes, which take place at open hearings Sept. 6 and Sept. 19.The spending blueprint relies on the property tax increase, as well as slight increases to water/sewer rates and the storm water fee charged to residents.Gretsas said he was proud of the proposal, which builds on last year's 10.8 percent tax increase and under-spending in various departments, to create a pool of money in reserve for emergencies.Hurricane Wilma smacked Fort Lauderdale last year, leaving $60 million in damage. After the federal government paid its portion, the city was still out some $6 million to $8 million, he said.The budget maintains a reserve of more than $30 million and includes a lot of one-time expenses, he said, such as new equipment.With real estate predictions dire, the city's windfall of tax dollars could run dry in the future as double-digit increases in property values cease. Gretsas said this budget prepares for that, paying for equipment and catch-up maintenance that won't need to be in the next year's budget."There's going to be lean years ahead of us," he said, "if real estate predictors are correct."