Hollywood keeping tax rate, fire fee flat

HOLLYWOOD — Homeowners in Hollywood will be paying the same tax rate and fire fee under a $256.5 million budget proposed for the fiscal year that begins Oct. 1.

But the tax bill will likely be higher because of a 9 percent increase in property values, Hollywood officials say.

Homeowners would pay $773 for every $100,000 in taxable value for the seventh straight year.

The rise in property values has helped offset the rising cost of pensions, salaries and health insurance at City Hall, Mayor Josh Levy said.

“The property values increasing was the main driver for not having to deal with a large gap in the budget,” he said.

Earlier this year, Hollywood was anticipating a $10.5 million budget deficit. That gap has since shrunk to $2.4 million, city officials say.

Pensions for police and general employees may cost up to $1 million more than projected, potentially hiking the gap to $3.5 million.

In recent years, residents have urged Hollywood to lower the city’s tax rate, one of the highest in Broward County. But that’s not likely this year.

“I don’t believe shrinking the tax rate would be wise,” Levy said. “I’d love to lower it, but I don’t think we’re there.”

Next year’s budget calls for 23 frozen positions to be filled, including nine sworn police officers, six firefighters and two code officers.

Hollywood Commissioner Dick Blattner says he feels confident about next year’s budget, but has concerns about the following year.

In 2018, voters will face a ballot question placed by the state Legislature that would exempt another $25,000 in home value from taxation for permanent residences with a homestead exemption.

That would create a $4 million deficit in Hollywood’s budget, Blattner said.

The city portion of the tax bill is about one-fourth of the total. The county, hospital district, school board and other government entities make up the rest.

Hollywood commissioners will give final approval to the budget during hearings Sept. 13 and 27. Both meetings begin at 5:30 p.m.

sbryan@sunsentinel.com or 954-356-4554