Using the US Census Quick Facts, I looked at similar sized Florida cities what has been happening to their populations from 2000-2006
Pensacola, 2000: 56,255…2006: 53,248 DOWN
Sarasota, 2000: 52,715…2006: 52,942 UP
Bradenton, 2000: 49,506…2006: 53,662 UP
Margate, 2000: 55,974….2006: 53,909 UP
Wellington, 2000: 38,216…2006: 54,943 UP
As the city population shrinks, fewer people have to bear the costs. The City pension problems are being fixed, which is a good thing. However, a smaller city is having to bear the costs – nearly $14 million annually– to get the pensions funded properly. I’m not placing blame, just stating the fact that today’s citizens and future generations are paying for this over 400 percent jump in pension costs.
While the population decreases, the property taxes increased –73 percent. Most of the tax increase has been borne by the business owners. Homeowners who still own their homes from 2000 have seen tax decreases ranging from 6 to 10 percent from 2000 to 2008. Meanwhile many business owners had 40-60 percent increases.
Pensacola needs an expanding business economy to offset its declining residential tax base. Projects like the Community Maritime Park with Studer’s $12 million office building and the retail and commercial components are important, as are the Technology Park and the redevelopment of the area around the Main Street Sewage Plant. The homeowners don’t support the basic services that they are provided.
The declining population also hurts the City’s other funding sources. Energy Services of Pensacola has been impacted. Residential gas customer usage in the city dropped from 505,000 mcfs in 2000 to 327,000 mcfs in 2007. The overall customer usage has dropped 3 percent, while the direct rate per mcf is up 60 percent. Few Pensacola residents are using their own gas utility from 20,657 in 1999 to 17,032 in 2008 – 17.5 percent drop.
The challenge for Pensacola is to expand its business tax business and finds way to attract more residents. Otherwise, there will be a need for massive cuts in services or a series of tax increases.