After a brief Truth in Taxation meeting without public comment Monday, the Clearwater City Council approved the 2018 final levy in the amount of $1,029,050, which represents a 2.92% increase over the 2017 levy of $999,852.
In September, the council adopted a preliminary 2018 levy of $1,051,850. At the time, that would have been a 5.9% increase. But in discussions about lowering the numbers, the council agreed to reduce or eliminate the budget for the EDA Growth Incentive Program, which hadn’t been utilized as much as expected.
In the final levy Monday, the EDA line item was cut from $28,406 to $5,838. The parks budget was also cut by $2,392 and the general fund was reduced from $515,529 to $505,537, lowing the amount of tax increase form most properties.
Total impact on a home with a taxable market value of $131,000 is about $35 a year.
A homestead property with a taxable market value of $47,900 will pay an additional $13.
A commercial property valued at $500,000 will have taxes lowered by about $63.
Utility Fees
After a 20-minute debate, the council also voted to increase water and sewer rates by two percent starting with the first billing in 2018.
During a discussion about adopting the 2018 fee schedule, it was noted the sewer rates were not keeping up with costs. Administrator Kevin Kress said the fund was operating at a deficit and rates would have to be adjusted eventually.
He also said since the city is looking at some capital improvement projects, including a possible new water main under I-94 in 2018, the water fund will also need more revenue to stay in the black.
Councilmen Kris Crandall and Rollie Lange said they weren’t opposed to a small increase now to prevent a big hike down the road. But Councilman Richard Petty said he didn’t feel it was right to pick an arbitrary number without figures to back it up.
He suggested looking into the actual fund balance and usage projections first, then coming back in January to make a decision.
Council Member Andrea Lawrence agreed.
When it was time to decide, Lange, Crandall and Mayor Pete Edmonson voted for a two percent increase in base rates and flow rates for water and sewer. Petty and Lawrence voted against.
Members of the council also agreed to review the numbers in January.
Current rates for water are: $5 base fee per month; $1.30 flow charge per $1,000 gallons up to 9,999 gallons; $1.80 per 1,000 gallons over 9,999 gallons.
Sewer rates: Base fee $28.65 per month; $9.50 flow charge per 1,000 gallons (residential); $13.52 flow charge per 1,000 gallons (commercial & industrial).
Water access charges ($1,975.71) and sewer access charges $5,607) (WAC & SAC) remain the same.
