Bradenton Beach commissioners unanimously passed a final reading of an ordinance to adopt the 2013-14 budget at a Sept. 18 special meeting.
Commissioners also passed resolutions to adopt the tentative millage rate at 2.3329 with a 2.92 percent increase over the rollback rate — the millage needed to produce the same revenue as the current year — and the $2,502,724 budget.
A mill is $1 for every $1,000 of appraised property value.
Commissioners raised taxes for the current fiscal year after facing a $450,000 budget shortfall, but opted to keep the tax increase to a minimum by taking half of the shortfall from the city’s reserve fund.
The difference in property taxes this year for homeowners was about an $85 increase for a home valued at $450,000. However, property values increased this year by about 6.5 percent, meaning the city increased its coffers more than expected by about $23,000 through ad valorem revenue.
The city receives about 10 percent of property taxes. The remaining percentage is collected by Manatee County and school district. The fire district receives its revenue through an assessment.
If property taxes increase and the millage percentage rate does not, state law terms it as a tax increase.
As established by the state, the rollback rate is the millage rate needed to produce the same revenue as the previous year’s budget. Any rate higher than the established rollback rate is a tax increase.