County cuts tax rate, eliminates employee raises

Objection!
Donna Banas urges the County Council to reject the proposed budget and the higher tax rates required to fund it. Banas appealed to the council to cut "the fat part of the budget," as she described how the new property-tax rates would add $900 to her family's tax bill.

Who let the dogs in?
Is this a form of animal abuse? These service dogs for the blind could only endure patiently the hours of proceedings leading up to the County Council's adoption of the 2009-10 budget and higher countywide tax levies.

BEACON PHOTOS/AL EVERSON
A full house
Hundreds of people feeling they have a stake in Volusia County's 2009-10 budget and taxation pack the County Council Chambers to listen and speak on the pocketbook issues. Factions for and against the new budget were intermingled as the council conducted its final public hearing and later approved a $614 million spending blueprint.

By Al Everson
BEACON STAFF WRITER

posted Sep 20, 2009 - 8:12:12am

"It's 11 o'clock. Do you know where your politicians are?"

In what turned out to be a late show, taxpayers won a small victory Sept. 17, when the Volusia County Council reduced its 2009-10 budget and shaved a few cents off key property-tax rates.

The final decision on the budget came shortly before midnight, following a public hearing that lasted four hours and featured much debate among council members and residents.

"We can't drive a Rolls-Royce on a Chevrolet budget," said Eddie Colosimo, of Port Orange.

"Enough will never be enough for you," Donna Banas of New Smyrna Beach, told the council. "You want $900 more from my family. My husband has not had a raise in three years. ... I'm not your ATM."

Banas said she identifies with the Tea Party movement.

"If we were on a ship, I'd throw you all overboard," she concluded.

Some in the audience wanted no changes in the proposed budget. Doug Hall, who is blind, feared mass transit would suffer if the budget is reduced.

"Taxes are a tough thing. People generally don't like taxes," Hall said. "If we don't pay, we don't get anything. ... I am here to advocate for Votran."

A Deltona father, Eric Dearborn, advised against saving money by closing parks or cutting recreational staff, for the sake of the children.

"We need these parks for them," Dearborn said. "I have no problem with paying my part."

Shortly before midnight, the council voted 4-3 to set the tax rate for the county's general fund at 5.38 mills. That's about 7 cents per $1,000 of property value lower than the 5.45-mill levy recommended by County Manager James Dinneen.

The new general-fund rate of $5.38 per $1,000 of taxable property value was set amid verbal volleying.

There were those who favored tax relief and those who opposed additional last-minute spending cuts and shifts in accounts within the budget. The new rate is about 19 percent higher than the levy it replaces, 4.5 mills.

"I'm all for saving tax money, but I have reservations about using capital [funds] for operations," said Council Member Josh Wagner, as he and his colleagues debated a proposal to maintain the general-fund levy at the 2008-09 figure, rather than raising it at all.

Keeping the general-fund rate at the 2008-09 level would have forced the County Council and/or the administration to cut approximately $27 million more from the budget.

The mere suggestion of slicing spending by that amount rankled others.

"I am surprised to be sitting here at 20 minutes till 11, talking about policy changes that just seem unfair to council members — to make major changes, draconian changes," Council Member Pat Northey said.

The double-digit increase in the ad valorem rate for the general fund caused consternation for Council Member Andy Kelly.

Kelly wanted to talk about reducing the budget and tax rate by possibly not putting aside 1 percent of the budget this year into a reserve fund for emergencies. That would save taxpayers up to $1.6 million, he said, and additional savings could come from delaying building projects, such as a jail addition.

The county currently has about $8 million in its emergency reserve, and didn't deplete any of the money during the current fiscal year.

Kelly said he had heard a "loud and clear" message from his constituents who want their tax burden reduced.

"I wholeheartedly support Mr. Kelly's suggestion," Council Member Carl Persis said.

Persis favored using reserves, if necessary, to cover vital services, as he likened the current economic conditions to an emergency for taxpayers.

"If this isn't a rainy day, what is? It's not a rainy day; it's a rainy year," Persis argued.

Earlier in the day, the council had unanimously opted not to give a 2-percent pay raise to county employees. That action saves more than $3 million in the next fiscal year, bringing the county's operating budget down from $617.7 million to $614.3 million.

"We commend the county for not voting the raise for the people making $2,000, $3,000 and $4,000 a week," said Margie Patchett, executive director of Volusia Tax Reform, as she called for more reductions in taxation and spending.

The salary savings was not enough for three County Council members, who urged more austere steps to bring county finances more in tune with those of households and businesses.

Council Member Jack Hayman allied himself with Kelly and Persis. Critics of the new budget, however, could not prevail. County Chair Frank Bruno rallied Vice Chair Joie Alexander and Council Members Northey and Wagner to form the majority in passing the revised fiscal blueprint with its modest reductions.

County Manager James Dinneen warned against major and sudden changes in the budget.

"That's a lot to cut," Dinneen said, predicting a grim future. "You have to cut $27 million again next year ... and you won't have the reserves. ... I am not a miracle worker. I don't think you can keep the programs next year."

The County Council heard from the audience many suggestions on how to reduce spending.

"I would like to see a pay cut [for county employees] in the $50,000 to $75,000 pay level," said William Brown of Orange City.

Colosimo proposed paring the Beach Patrol.

"I don't know why we need armed guards on the beach. Most of the people don't have enough clothes on to hide a weapon," Colosimo said. "I suggest we sharpen our pencils and go back to the table."

The council's mandate to skip the 2-percent pay raise affects county workers in all departments, including those who are not paid from the general fund.

In addition to all the other county employees, workers in Public Works, Daytona Beach International Airport, Utilities, the Ocean Center, the Port Authority, Mosquito Control and Fire Services will likewise see no increase in their pay for the coming fiscal year.

The county's 2009-10 fiscal year begins Oct. 1.

— al@beacononlinenews.com

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