But a lower tax rate doesn't necessarily translate into a lower tax bill. A final vote on the budget is set for Sept. 22.
By DUANE BOURNE
Published September 10, 2004
BROOKSVILLE - Rising property values from development in and around Brooksville has allowed city officials to reduce the millage rate.
But that doesn't mean homeowners will see a significant change in their property tax bills.
Taxpayers whose property value remained the same will likely pay less in taxes during the 2004-2005 fiscal year, finance director Steve Baumgartner said on Thursday.
Under the current 8-mill rate, which expires at the end of the fiscal year on Sept. 30, a homeowner whose property is assessed at $100,000 with a $25,000 standard homestead exemption paid $600 in taxes last year.
But after council members adopted a 7.87 mill-rate at Wednesday's budget meeting, residents would pay about $590.25, a difference of $9.75 less.
City Manager Richard Anderson said in adopting the rollback rate, the council has begun to fulfill its promise to lower property taxes after it passed an unpopular utility tax last year, which added 10 percent to residents' electric bills.
The move was also designed to maintain property taxes at the 2003-2004 level, which would generate the same amount of revenue. In Brooksville, 1 mill is worth $279,807, according to city estimates.
"We held the line: no tax increase," Anderson said.
The new tax rate was announced as the City Council on Wednesday gave preliminary approval to its roughly $30-million budget, which, according to Anderson, closely resembles the previous year's figures and accomplishes the goal of replenishing municipal reserves.
The proposed budget reflects a 15.5 percent increase in spending from $5.8-million to $6.7-million.
Though the increase in the budget can be attributed more to the rising cost of personnel and operating expenses, it does not reflect the same economic climate that forced the city to defer all capital improvement projects last fiscal year and dip into its reserves to fund several unexpected expenses.
Since the beginning of the budgetary process in August, officials cut more than $600,000 in order to balance the books and meet the goal of having $750,000 in year-end reserves.
It was not an easy road, however.
Several new positions requested by department heads were left unfunded and officials again deferred capital improvements, such as the long overdue street resurfacing project.
In the meantime, council members said they will address capital expenditures as the needs arise.
Final approval on the city's budget is scheduled for Sept. 22.
