Interlachen mulls property tax hike

INTERLACHEN — Amid concerns about the matching funds required by several pending grants and the prospect of a new town hall, council members considered a raise in property taxes at a Monday night budget workshop.

The raise would bring Interlachen's property tax rate from 7.95 mills to 8.5 mills if approved, an increase of 55 cents on every taxable $1,000 of property value. For example, a $45,000 home with a homestead exemption would pay $170 rather than $159 next year, an $11 increase.

The council tentatively approved the higher millage last week at a regular monthly meeting with the consideration that state budgeting laws make it easier to lower a tentative rate than to raise it in the middle of the budget process. At Monday night's meeting, council members were using figures generated by the higher rate in their considerations.

Town Clerk Pam Wilburn said that the current tax rate is estimated to bring in $289,166 next year and the 8.5-mill rate would bring in $318,732, an increase of $29,566. That increase may help pay the match required by one of the grants Interlachen has applied for, Wilburn said.

Matching grants

The town has at least three grants pending that will all require spending local money to accept.

n A $600,000 state infrastructure grant will improve the water treatment plant if the town spends $350,000 for road paving over the next two years. The council plans to use its $200,000 Better Place Plan funds already available and whatever accumulates over the two-year period, but if there is not enough the general fund will have to be used. Wilburn said $40,000 from a gas tax may also be available.

n The $200,000 state recreation grant the town just accepted for improvements to Dowda Park will require $50,000 of the town's money initially, though the state will eventually pay all the money back once the project is complete.

n The town has also applied for $120,000 in FEMA money to retrofit town hall against emergencies, but that grant requires a $40,000 match from the town.

"I don't know if the same money has been promised for two or three different things," said Councilwoman Janet Davis.

"It seems to me we've got it covered three or four different ways," Councilman James R. Coulter said.

New town hall

When the FEMA grant for town hall was mentioned, Coulter objected, saying, "Do we really want to send good money after bad? ... I don't believe paying this kind of money into this old structure is the way to go. I think we need to construct a new building."

At previous meetings and again Monday night, Coulter proposed a "hurricane-proof" dome-like structure designed by a Florida company to house town offices and emergency operations on the land near the police department on State Road 20. Councilman Dave Trout 3rd suggested asking the county to move its West Putnam offices into the structure as well.

Coulter proposed a bond of approximately $500,000 to build the new building, repayable at a very low interest rate over several years. Trout suggested that Coulter contact the town's auditor to ask if the plan is economically feasible before the FEMA grant has to be accepted.

"I'm kind of in favor of that idea of putting the town hall over by the police department," Trout said.

Councilwoman Fran Martin expressed her opposition to the idea, saying she had never seen the town offices overflowing with people and that a new building would be "too big a leap at this time."

No final decisions were made Monday night, as the city's budget does not have to get final approval until Oct. 1. The workshops will continue at 5:05 p.m. today and the public is invited.

rmorris@palatkadailynews.com