By Brian McBride
Assistant Editor

With Kissimmee property values continuing to decline resulting in less revenue for the city, municipal staff has recommended raising the tax rate from 4.62 to 5.03 mills to avoid affecting services for residents.

In the 2011-12 fiscal year tentative budget, which is $127.3 million – down from $158.8 million last year – staff is recommending the rate increase in order to balance that budget and maintain a 20 percent reserve in the general fund as set by the City Commission.

Raising the rate to 5.03 mills would generate $10.6 million in additional ad valorem tax revenue for the city, according to staff. A home assessed at $100,000 would have a city tax bill of $504 compared to $462 the year before.

The main reason for the rate increase is to avoid affecting services to city residents, especially public safety, which is supported by the general fund, City Manager Mike Steigerwald said. Despite various operating cuts, the city’s general fund revenue is projected to drop by $961,872 due to the 11 percent drop in property values as recorded July 1, when the Osceola County Appraiser certified tax rolls.

Although the city established a fire fee in 2008 and eliminated multiple positions in various departments, the continuing economic slump has prompted staff and city officials to look at other revenue sources. Doing nothing could mean laying off employees, including police officers, city officials said.

“The last thing we want to do is impact our police services,” Steigerwald said.

According to the budget, the city is eliminating three full-time positions and five part-time positions in the parks and recreation and central services departments. Those positions, however, are currently vacant.

But city staff is recommending adding three new firefighter/paramedic positions. The Kissimmee Fire Department has recently lost of number of firefighters who have either left the department or are not working for health-related reasons.

“My overtime budget has been stretched pretty thin,” Fire Chief Bob King said.

So much so at times, that King has not staffed the heavy rescue unit, which is a supplemental response to normal fire trucks at an emergency call. With heavy extraction tools, the unit is designed to respond to calls such as car wrecks and industrial accidents.

The Kissimmee Police Department is adding one crossing guard.

In the parks and recreation budget, $2.5 million was listed for the continuation of lakefront improvements. The city is currently in the second phase of the project, which will cover the major marine construction, including building the pier and replacing several hundred feet of seawall. It also will add more parking spaces near the boat ramps.

This phase also calls for building a large urban plaza on Ruby Avenue near Lakefront Drive, which will encompass several pavilions and a concession area, as well as a playground along Monument Avenue and a pavilion for large events.

The City Commission will vote on approving the budget on Sept. 30 after two public hearings.