Millage rate reduction up in the air as budget talks begin in Bradenton

Despite an anticipated record $125 million budget for the 2017-18 fiscal year, which begins Oct. 1, a divided Bradenton City Council appears to be leaning toward keeping the millage rate flat, though two officials would like to see it lowered. It’s a full $10 million more than the current budget.

A mill is $1 for every $1,000 of appraised property value.

Though the city is looking at $1.3 million in increased property tax revenue due to an 8 percent increase in valuations citywide, and an estimated $3.6 million in sales tax revenue, much of the additional funding is already dedicated.

“The good news is the increased revenue, but the bad news is that items in the budget are taking up that money,” said Economic Development Director Carl Callahan. “Most of it is for public safety increases, employee raises and a couple of things we weren’t anticipating like $325,000 for new servers for both IT and public safety as part of a long-term plan because they are at the end of their life cycle.”

Other expenditures hitting the city’s budget include $600,000 for the new emergency radio system that will tie the city into Manatee County’s, $6 million toward the new City Center Parking Garage with an additional $6 million of anticipated loans, $336,000 invested into the city’s new economic development department, $1.5 million paving program and more.

Most of the city’s budget is dedicated to specific spending based on the type of revenue. Property taxes make up a smaller percentage of the overall budget. The city anticipates $18.4 million in property tax revenues for the coming budget cycle, but the city pays out $26 million between the police and fire departments. The police department’s proposed budget this year is $16.8 million while the fire department’s budget is $9.3 million.

“If you have $1.3 million in additional revenue and ask where is it going, it’s being eaten up right up front in salaries and raises,” Callahan said.

The city anticipates given a 3 percent raise to non-emergency personnel, which are negotiated through union contracts, for an anticipated expense of $650,000, not included added costs for increased benefits.

Officials have until Aug. 1 to set a tentative millage rate, which can be lowered from that date, but not raised. The city’s current millage rate is 5.9876 and has remained so for the past five years. To lower the rate by even one 10th of a percent would mean a loss of $150,000. When property taxes don’t cover full public safety services as it is, Callahan said something else has to give in a relatively small operational budget.

“We really aren’t doing that much different,” Callahan said. “The difference you are seeing is largely in the parking garage and the fact that the (Community Redevelopment Agency) budgets are in our budget now and those dollars are largely spoken for as well.”

Councilmen Gene Brown and Bemis Smith have supported a reduction in the millage rate, but if the rate does not meet the yet unknown rollback rate, it is not a tax cut. Nor does leaving the rate flat mean that taxes aren’t being raised because by state statute, if the rate isn’t cut to offset the additional property tax revenue, it is considered a tax increase.

Smith wasn’t convinced the city couldn’t do better for the taxpayer, saying, “I haven’t seen a government planning to spend $125 million that doesn’t have fat in there somewhere.”

Brown said he is fine with leaving the millage rate as it is for now, but, “If there is a way to turn it around do something to give back to the taxpayers as we move forward, then it would be worth it.”

Bradenton has the second highest millage rate in the Manatee and Sarasota areas, but it is the only municipality that does not have a fire district, which is a big part of a homeowners annual tax bill. Callahan reminded the council that, “If Bradenton had a separate fire district tax, in reality our millage rate would be in the high 2’s,” significantly lower than surrounding municipalities, “When you compare apples to apples.”

This story was originally published July 12, 2017 at 5:22 PM with the headline "Millage rate reduction up in the air as budget talks begin in Bradenton."