Sunday, July 2, 2006

32% Increase in City's Taxable Value 2004 to 2005

Well, amid all the recent bad news coming from our fair City, let's look at a little bit of some positive news. According to the Palm Beach Post article of July 1, 2006, the City's taxable value went from $1,528.6 million to $2,016.1 million. This is an increase of 32%! At the May 3, 2006 budget workshop, Mr. Boyer estimated a 15% increase in taxable value. I am sure this was meant to be a conservative estimate but raised much concern as the estimated budget deficit with that 15% increase was $4,797,500.

Doing some quick and dirty calculations, and using the same assumptions and the 8.4 millage rate but applying the new tax base, now yields a deficit of $3,626,830. Granted, still a deficit, but an extra $1,167,727 isn't a kick in the teeth by any means. That additional money over the original forecast actually more than pays for the elimination of the Outside Surcharge for the Electric. Clearly, we are still in a situation where tough choices will have to be made during the upcoming budget cycle, but the situation is not as dire as once thought.

This additional tax base is courtesy of the increase in property values generally, as well as new development in our City. While the general increase in property values is expected to decline next year, we will still benefit from new development that is currently under construction and not currently on the tax rolls.

"Political advertisement paid for and approved by Wes Blackman for Commissioner – District #3"