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Budget Given Tentative OK: Pembroke Pines Commissioners Approved on First Reading a City Spending Plan Wednesday Night. But Questions Remain on How Deficits Would Be Made Up.
Thursday, September 10, 2009 1:56 AM


(Source: The Miami Herald)trackingBy Diana Moskovitz, The Miami Herald

Sep. 10--Pembroke Pines commissioners gave initial approval to a $322 million city spending plan Wednesday night -- a plan that has an approximately $28 million hole and no clear answer about how it would be filled.

The vote for the spending plan was 3-2, with Commissioners Angelo Castillo and Iris Siple against it. The commission also voted 4-1 to set a tentative tax rate of $5.6374 per $1,000 of taxable assessed property value. Castillo was the lone no vote on the tax rate.

Both the budget and tax rate could change. A final vote is scheduled for Sept. 23.

MIGHT LOWER RATE

City leaders hinted that they still hope to find a way to lower the tax rate before their final vote. Negotiations continue with all three city unions -- police, fire and general employees -- and Pines officials hope they will agree to pension cuts.

But, if the tax rate doesn't come down in the final vote, longtime residents will pay more taxes.

A home, after a homestead exemption, left with a taxable value of $150,000 paid $664 in city taxes this year, based on a tax rate of $4.4312 per $1,000, along with a fire fee and paying back city bonds.

That same home, with the proposed tax rate, would pay $845, along with the fire fee and city bonds.

Broward County, school district, hospital district and other agencies' levies are additional.

Wednesday votes capped a raucous night, especially for the Pines, where commission meetings typically attract few residents and little public discussion.

Several hundred people packed the chambers, a combination of people angered by the pension plans given to city employees, parents upset about closing preschools and cheerleaders who heard an untrue rumor that the park they used would close.

Among the residents was David Zuckerman, who said his home's value went down more than $100,000, yet his taxes might go up.

"I just want to know, how is this possible?" he asked.

Earlier this year, City Manager Charles F. Dodge released a $313.8 million spending plan that kept the same tax rate as this year's but included two deficits: a $23.8 million gap in the city's main operating fund and a $15.1 million hole in the utility fund.

The city's estimated budget has since gone up after Dodge factored in a plan to upgrade the water system, although how that would be paid for isn't certain.

But what hasn't changed is what the city must pay in employee benefits.

The city estimates it must pay almost $7 million more into its police and fire pension funds and $3.6 million more into its general employee pension fund during the upcoming financial year, for a total cost of $38.9 million. This year, the total contribution for all pensions was $28.3 million.

PRESCHOOLS STAY OPEN

Comissioners also voted to keep open a pair of preschools that City Manager Charles F. Dodge suggested closing to save money.

The unanimous decision was met with wild applause from the audience. But commissioners added that they would revisit the possibility of closing the schools if marketing didn't get enrollment up.

As for the utility fund, most of the gap was closed after Dodge factored in using outside funds for upgrading the water system.

That gap also would come down further if there are pension reductions.

The utility fund at one point held more money, but was depleted, in part, by the controversial, and barely started, City Center project.

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Copyright (c) 2009, The Miami Herald

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