Palmetto finalizes its $26.4 million 2016-17 budget

Palmetto officials on Monday took swift action to unanimously approve the city’s $26.4 million budget for the 2016-17 fiscal year, which begins Oct. 1.

But getting to that point wasn’t so quick as elected officials and staff went several rounds through the lengthy budget process to overcome an initial $500,000 deficit, of which $300,000 was the result of a completed salary study that boosted employee salaries. A tax increase was discussed early on, but was stopped in its tracks by Commissioner Tambra Varnadore and eventually backed by the majority.

Varnadore told the commission last year when the city raised taxes that she would not support another tax increase while she maintained her position on the dais and argued this year that, “If the citizens of Palmetto have to live within a finite budget, then so does the city.”

Officials eventually settled on leaving the millage rate flat at 5.9671. However, it is 5.57 percent greater than the rollback rate of 5.6522, meaning the city commission would have to lower the millage rate by that percentage in order for it not to be considered a tax increase, according to Florida statute.

The rollback rate was greater because valuations across the city rose about 6.5 percent, increasing revenue from property taxes by about $178,000. A mill is $1 for every $1,000 of appraised property value. Palmetto Mayor Shirley Groover Bryant said the excess revenue, “would be put toward personnel, capital projects and infrastructure needs.”

The city departments tightened their belts to overcome the deficit, but officials acknowledge if real attention is to be paid toward infrastructure needs and public safety, the city would rely heavily on the Manatee County half-cent sales tax proposal that will be on the November ballot. If successful, it would generate about $1 million a year for Palmetto, giving the city a big boost in infrastructure, public safety and parks expenditures.

The 2016-17 budget’s largest expenditures include mayor and commissioner salaries of $279,312, a $4.6 million police department budget, $651,862 for parks and recreation, $658,299 for its finance department, $773,709 for public works administration and $2.1 million for the city clerk’s office.

The fee-based department budgets were balanced coming into this budget cycle, which includes $1.5 million in the road and bridge fund, $2.1 million in the stormwater fund and $273,442 in the reclaimed water fund.

This story was originally published September 26, 2016 at 8:45 PM with the headline "Palmetto finalizes its $26.4 million 2016-17 budget."