Palmetto passes $29 million budget for 2018-19. Here’s where your money is going

Like other municipalities in Manatee County, Palmetto is enjoying a surge in revenue from increasing property values, passing a $29.2 million budget Monday evening for the 2018-19 fiscal year, which begins Oct. 1.

Palmetto’s millage rate will remain unchanged at 5.9671. With property values increasing citywide by an average of 6 percent this year, the city took in about $700,000 in additional property-tax revenue. A mill is $1 for every $1,000 of assessed property value.

By Florida statute, the city would have had to lower the millage rate by 4.6 percent for it not to be considered a tax increase because property owners will bear the burden of the increase in valuations on their annual tax bill.

This year’s overall budget is 7.4 percent higher than the current $27 million 2017-18 budget the city passed last September. The 2016-17 budget was $26.4 million.

Like surrounding municipalities, Palmetto continues to take advantage of increasing revenues to invest back into infrastructure needs. The city also passed a five-year capital improvement project plan with more than $20 million worth of projects.

Half of that is budgeted for this year at more than $10 million but includes a Florida Department of Environmental Protection $4.3 million low-interest loan to build an EQ basin at the water treatment plant.

Public Works Director Allen Tusing said the basin essentially “equalizes” water flow during peak and low-use periods, which will save the city money in the long-term by reducing the strain on equipment.

Tusing said the city expects to go out for bid by October and construction will take about a year to complete. The city is investing an additional $4.2 million to build a new public administration building at public works.

In total, including the $4.3 million EQ basin project, the city is investing $7.2 million in sewer, water and stormwater projects in the coming fiscal year. The totals include a state Community Development and Block Grant award of $750,000.

Employee salaries make up about 25 percent of the city’s budget. The largest expense, typical for any city, is the police department, which will cost $4.8 million to sustain. The city also has $6 million budgeted for the construction of a new police station.

This story was originally published September 25, 2018 at 10:47 AM.