PALMETTO -- The city of Palmetto is proposing a millage rate increase to help balance its budget.
The first hearing for the proposed 2014 budget will be at 7 p.m. Monday at city hall. If approved, the budget will increase slightly due to a proposed half mill property tax increase. The proposed budget would be $22.4 million, a $200,000 increase.
City Clerk Jim Freeman said a home with a taxable value of $100,000 will pay $50 more per year.
A millage rate is a tax applied to assessed property value. Millage rates are expressed in tenths of a penny. For example, 2 mills equals 2/10ths of a penny.
The 2013 millage rate was 5.2171, and it will increase this fiscal year to 5.7171.
Freeman said the millage rate increase will help the city buy much needed equipment.
"It will fund some capital equipment needs for parks and some equipment purchases for city hall," said Freeman.
The increase will alsoallow the city to maintain
services to residents and pay for rising pension costs.
Freeman said the city was able to fund some public safety items that were previously cut out.
"The money will address some public safety needs for the police department," said Freeman about the new dispatcher position the police department is adding.
Palmetto city officials say they want residents to understand the increase in property taxes will pay to improve major infrastructure problems put off for years.
The final adoption of the budget, where city commissioners will approve the final millage rate and budget, will be 7 p.m. Sept. 23 at city hall.
Janey Tate, city of Bradenton and Palmetto reporter, can be reached at 941-745-7041.