News

By Tim O’Meilia

The South Palm Beach Town Council might dip $118,000 into their reserve money to keep from raising the tax rate on condominium owners next year. 

The council spent much of a budget workshop session Aug. 7 trying to slice at least $20,000 from the $1.75 million budget proposed by Town Manager Rex Taylor. 

The cuts would keep the tax rate at $4.32 per $1,000 of taxable property, the same as the current rate. In July, council members tentatively approved a $4.39 rate but noted they would try to reduce it.

The council scrutinized the town’s $62,000 share for a beach renourishment study, legal expenses for collective bargaining with the police, employee health care costs, $3,700 for replacement ballistic vests for the police and deferred compensation for the town manager and clerk.

Eventually, the council took Taylor’s suggestion that the $20,000 come from reserves rather than slice what Mayor Donald Clayman called a “tight budget.”  If next year’s expenses do not amount to what is projected, some of the $20,000 would not be spent. 

“I strongly recommend we have a flat tax,” said Councilwoman Stella Jordan, who led most of the questioning. She said she feared becoming one of the California towns that recently declared bankruptcy.

Keeping the tax rate the same would, on average, reduce the actual taxes paid by town residents because property values in the town dropped 1.7 percent, a loss of $4.5 million in value. 

“I really thought we were at the bottom last year but it did slip down a little this year. Maybe now we’re at the bottom,” Taylor told the council. 

“I truly don’t think the numbers are going to change much next year or the year after. It will probably be two years out before we can see any real change and then it won’t be significant,” the manager said.

At first, Taylor suggested that the council not use reserves to buy down the tax rate, but assign that money for one-time capital expenses. “I’ve never seen a town council that did that give back that money later,” he said.

The town has a $2.2 million reserve fund, $1.4 million of it earmarked for future beach erosion costs. Taylor had already proposed taking $98,000 from the remaining $800,000 to balance the 2013 budget. 

Councilwoman Bonnie Fischer, the town’s representative on beach matters, proposed cutting the $62,000 beach budget. The town is obligated to pay 20 percent of an environmental impact study on beach restoration. 

The workshop generated some exchanges between Jordan and Police Chief Roger Crane, who defended an extra $1,000 next year for ballistic vest costs. The cost is for bullet-resistant panels that fit into traditional police shirts rather than vests over the shirt. 

“We need to be in a traditional uniform rather than look like we’re trying to go out and fight a war,” Crane said. 

When Jordan questioned fuel and uniform costs for public works expenses, Crane replied, “If we’re going to start counting pencils, I’m going to start counting pencils, too,” he said, referring to instances he and other town employees spend replacing light bulbs, picking up trash and doing small jobs not in their job descriptions. 

Both Councilman Robert Gottlieb and Vice Mayor Joseph Flagello insisted that any cuts that are made not require a reduction in town services.   

South Palm Beach

Current tax rate: $4.32* per $1,000 of taxable property

Proposed tax rate: $4.39*

Public hearings: 7 p.m. Sept. 4 and 19

*Does not include Palm Beach County Fire-Rescue service tax rate"Toqw"Town Council",