Anna Maria city treasurer Diane Percycoe told city commissioners at their July 7 preliminary budget work session that retaining the current millage rate of 1.7882 mils would generate $59,000 less ad valorem revenue for the 2011-12 budget than last year.
The rollback rate — the millage rate needed to bring in the same amount of ad valorem revenue in the coming fiscal year as in 2010-11 — would be 1.881, while a 2.0 millage rate would generate $63,892 in additional revenue, or $1.161 million.
The city has maintained a 1.7882 millage rate since 2006, she said.
Mayor Mike Selby said preliminary indications from the Manatee County Property Appraiser’s Office are that ad valorem revenues at the same millage rate as last year will decline about 5 percent due to the drop in property values in recent years.
Commissioner Dale Woodland said municipalities and governments across the country are “taking a hit,” and some governments are experiencing bankruptcy.
He said he wanted to keep the 1.7882 rate, but Percycoe reminded commissioners that the city drew $139,000 from reserves last year in order to maintain the prior budget year’s millage rate.
To maintain the current millage rate in the 2011-12 budget, about $190,000 would have to be allocated from reserves, Percycoe said.
“We do this every year, and work as hard as we can to maintain the millage,” she said.
The good news is that property values have been “slowly creeping up” in Anna Maria, and any increase will be reflected in next year’s ad valorem revenue.
Woodland also brought up staff pensions and benefits.
A new state law will require civil servants to contribute at least 3 percent of their salary to the state-run pension plan.
Percycoe said city staff are at the lowest possible pension plan offered by the state, and noted that elected officials also are in the pension plan.
What hurts many cities in the country is the high contribution level those governments make to an employee pension plan, she said.
Woodland said city employees have earned their pensions, but the state is now “taking them away.”
Commission Chair Chuck Webb said that’s not the issue before the commission.
Percycoe said she would have the draft 2011-12 budget ready for the work session at 6 p.m. Thursday, July 21, at city hall, 10003 Gulf Drive.
The commission must set a tentative millage rate by July 30. Once established by the commission, a tentative millage rate can be lowered, but can’t be increased.