Palmetto votes to set a higher tax rate

PALMETTO — The city clerk made almost every argument possible to convince the City Commission at Monday’s meeting to set a tentative property tax rate higher than the current rate.

Commissioners agreed with City Clerk Jim Freeman and voted unanimously to increase the property tax rate by a quarter of a cent for every $1,000 in assessed property value, but made it clear that his staff was to work to trim spending to keep the tax rate the same as this year’s.

“The staff is looking at the budget to identify added cost reductions,” Freeman assured commissioners.

He said the setting of a higher tentative rate which can always be reduced but not increased, was necessary because the commission has not yet had its budget workshops, and he was not sure where many of the spending cuts should be made.

City and county governments are required to set a tentative property tax rate by early August so the Manatee County Tax Collector’s office can mail out the TRIM, or Truth in Millage, notices by the middle of the month.

Also, Freeman made the commissioners aware of a possible 20 percent increase in employee health insurance costs. An insurance representative was looking at what plan changes could be made to lower those figures and would report to the commission at the next meeting.

Mayor Shirley Groover Bryant said she did not like higher tax rates, but encouraged the commissioners to adopt the increase. “We can’t guarantee we can get where you want to go without cutting services,” Groover Bryant said.

The current property tax rate of $4.6662 for every $1,000 in assessed property value would give the city property tax revenues of about $4.5 million based on the Manatee County Property Appraiser’s valuation of about $763.5 million in taxable property for the whole city.

That appraisal was 17.84 percent less than last year’s valuation, creating an $800,000 budget shortfall if the commission wants to keep spending at the same level.

“I have every intention of keeping the tax rate at 4.6662,” said Commissioner Tambra Varnadore.

But she said it would be prudent to increase the rate until the commission has its workshops.

Commissioner Brian Williams agreed that higher taxes was not part of his thought process, although he would support the tentative increase. “But staff has to keep looking for cuts and keep within the current millage rate,” Williams said.