Port St. Lucie approves property tax increase, council pay freeze

City property owners will see their taxes go up, and the Port St. Lucie City Council and a workers’ union will see their pay remain the same, all to help the city out of an $11 million deficit.

“The is the worst budget year that I’ve experienced,” Vice Mayor Jack Kelly said.
At the final day of its budget retreat, the council Friday unanimously approved a 26 percent property tax increase, boosting the rate from $4.22 to $5.34 per $1,000 of taxable value.
Under the approved tax hike, a property owner with a $123,891 assessed value minus a $50,000 homestead exemption will pay $419 on the city portion of their tax bill.

City Manager Don Cooper proposed raising the property tax rate to handle an $11 million deficit. Without the tax hike, the city would had to close its Communications and Parks and Recreation departments, and recreation facilities.

“This is the right thing to do to keep the city above water,” Kelly said.

Also on Friday, the council agreed to suspend an ordinance that would automatically give them a pay raise. City spokeswoman Rita Hart said the Professional Employees Association union agreed to a pay freeze in exchange for the city not laying off any of its union members.

City officials estimate the freeze on union workers’ pay would save the jobs of 20 to 25 people. However, savings to the city was not available Friday evening.

“We’re no different than anybody else,” Mayor Patricia Christensen said.

Normally, city council pay increases are at the rate of the consumer price index. City records show Christensen receives $46,134 a year, council members Chris Cooper, Michelle Berger and Linda Bartz are paid $30,929 and Kelly is paid $28,870 because he has declined past pay raises.

While the tax rate is higher, the owner of a $123,891 home with a $50,000 homestead exemption actually could pay about $103 less next year, when compared to this year because the property’s assessed value is lower. Four years ago, that $123,891 house had an assessed value of $159,135, city records show.

Also, City Manager Don Cooper estimated some 117 city positions are on the chopping block. But some of those positions are not filled or have been left open through attrition, said David Pollard, the city’s director of the office of budget and management.

“The unemployment rate is already high and we would have been adding to the rate,” Councilman Chris Cooper said.

At 7 p.m. Sept. 14, the council will have a public hearing where the public can voice their concerns about the tax rate.