We feel the need to address concerns of some Polk City landlords and tenants. Some tenants are saying that their landlords have threatened to increase their rents if the City of Polk City were to be dissolved, since they feel there property taxes will rise.
In the event that the city is dissolved, especially the landlords stand to gain financially. First of all, if the high city water and sewer rates are replaced with much lower county rates the tenants won’t feel the need to move elsewhere to avoid the skyrocketing utility bills here in Polk City. At present there is a growing number of empty homes and apartments within the Polk City utility service area. This lowers property values, since many landlords don’t have the income for proper maintenance of these properties.
Also, landlords do not receive homestead exemptions on these rental properties and are paying higher property taxes. If the city is dissolved, the city tax portion of their tax bill will be eliminated and replaced with an assessment tax to pay off the city debt. In the event the city is dissolved, the county will take back any property that carries debt owed to the county and that debt is eliminated, reducing the current city debt. Any properties that the city presently owns will be sold off, and reduce this debt further. Any remaining debt will be renegotiated and paid back over an agreed upon number of years. For example: if the remaining debt balance would be $8 million, divided among the approximately 1200 parcel owners, comes to $6,666.66 per parcel. If that debt is amortized at a 3.25% rate over 10 years, it comes to $791.54 per year per parcel. If it is spread over 12 years, it will come to $679.78, and over 15 years it will be $568.59 per year per parcel. That amount will replace the current city tax. At the end of the 10 or 15 years, that assessment will be eliminated. With lower water and sewer rates and lower taxes, both landlords and tenants will benefit, and Polk City will be a more desirable and affordable place to live. Possibly even attracting new business and developers to the area due to our convenient access to the interstate. Did you know that Brandon, in Hillsborough County is an unincorporated area? It is a thriving community and a magnet for retailers, which creates jobs and raises the standard of living.
These are still postulates. While much has been promised from transitioning to county, where are the numbers and promises from Polk County officials. I do not take this decision lightly and want facts not guesses. Also, where is the funding coming from to support this push? Sometimes following the money changes the entire picture. Mailings to every home in Polk City is expensive. Where did this money come from? I think I'll hold my signature until I feel all of the "smoke and mirrors" are gone and I can make an educated decision. (I continue to follow information on this site, the Ledger blog, and at formal city meetings.)
ReplyDeleteGM very well said. These "people" have no PROOF- and nothing in black and white from the county stating the rates will be lower. Actually if you do the math people in city limits will have higher rates and several of these people have said so themselves on other blogs.
ReplyDeleteQuite honestly as a renter I am seriously considering moving elsewhere. I was looking at purchasing a home in Polk City but with the financial instability, rising tax rates, and exhorbenent utility rates, I am looking elsewhere. If I do not purchase a home I am looking at breaking my current lease to move someplace with more reasonable utility rates.
ReplyDelete