- April 18, 2024
-
-
Loading
Loading
Estimate: The city’s general fund budget will be $28,398 more for the 2012-2013 fiscal year.
The Palm Coast City Council agreed in consensus Tuesday afternoon to set the maximum proposed millage rate at 4.5 mills for next fiscal year.
The new rate of $4.50 per $1,000 of taxable value is a jump from the current millage rate of 3.99 mills, but it may not necessarily mean a tax increase for most residents.
According to Finance Director Chris Quinn, a rolled back rate of 4.2958 mills would generate the same taxes based on the 6.3% decrease in property values citywide.
“City Council made it very clear that we’re going to try to do better than (4.5),” City Manager Jim Landon said.
At Tuesday’s workshop, Quinn ran through the general fund — a $25.76 million fund that includes administration, fire, law enforcement, economic development, parks and recreation and other departments.
The millage rate must be increased in order to collect the same amount of money as last year, according to city officials.
The 2012 general fund budget was set at $25,762,000 with 209 full-time equivalent employees. The proposed 2013 budget is $25,790,398 — an increase of $28,398, or a 0.1% change. The full-time equivalent of employees is down, however, to 206.
The city clerk’s office has a projected decrease of $17,172 (11.7%), financial services will decrease 8.8%, from $759,914 down to $692,699 — despite adding a full-time employee.
Law enforcement and streets and drainage are all projected to be the same as last year. Fire will have a decrease of about $56,000 (0.8%), although the city will spend approximately $64,000 for cardiac monitors. According to Tuesday’s presentation, there will be 2.5 fewer full-time equivalent employees next year.
City Councilman Bill McGuire was the most vocal in questioning the budget during Tuesday’s discussion. By the end, however, he was supportive of city staff.
“City management has done a very good job of fiscal stewardship,” McGuire said.
An unknown for the City Council as budget discussions continue is the impact of the half-cent sales tax, which will expire Dec. 31. Last week, the Flagler County Board of County Commissioners, with a 3-2 consensus, agreed to put the continuation of the sales tax on this year’s general election ballot. (The County Commission will formally vote on this item at its Monday, July 16, regular meeting.)
However, even if the voters pass the tax, the city will collect less money because the formula will switch to the Florida Department of Revenue’s default formula.
“This year is very unusual ... because we have a lot of different variables that we haven’t had in the past,” Landon said, citing the half-cent sales tax.
Mayor Jon Netts said setting the millage rate higher than needed is the right move just in case a financial emergency should arise.
“At this point in the game, do not unnecessarily tie your hands ... Give yourself as much flexibility as you can,” Netts said.
The City Council will formally vote on the proposed rate at its next regular meeting, which will be 9 a.m. Tuesday, July 17, at the Community Center.
Then, city staff will provide more presentations on other funds in the final two meetings of July. The final tax rate and budget will be set by mid-September.
