Anna Maria heads toward tax hike

Anna Maria property taxes are on the rise.

City commissioners voted 5-0 July 26 to set the tentative millage rate at 2.05 for the 2018-19 fiscal year.

The current ad valorem rate of 2.05 yielded $2,037,798 for the 2017-18 fiscal year. If commissioners keep the millage rate the same, at 2.05 for 2018-19, estimates project a $2,245,437 yield — a $207,639 increase in revenue and spending.

Mayor Dan Murphy recommended the city keep the millage rate at 2.05, at least until the finalization of the budget.

Murphy said if there are excess funds going into the new fiscal year, the city could instead go with the rollback rate of 1.8911. The rollback rate would yield $2,071,388.

The rollback rate would generate the same ad valorem revenue as the current year.

Millage is the percent of $1,000 of property value used to calculate property taxes.

The owner of a property appraised at $400,000 with a 2.05 millage rate would pay $820 in property taxes.

The owner of a property appraised at $400,000 with a 1.8911 rollback rate would pay $756.44 in property taxes.

The total appraised taxable value of Anna Maria properties is $1,094,718,024, with $19,008,031 in new construction.

Murphy said commissioners can always go down in millage, but the rate can not be raised after the tentative millage is set.

Murphy reviewed proposed revenues and expenditures.

Thanks to funding for the Anna Maria City Pier demolition and construction, total revenue for the new budget year is $7,733,042.66, an increase of $3,548,074.21 from 2017-18.

Pier funding, grants, donations and state appropriations account for $2,453,865.80 of that rise.

Murphy said he expects the Federal Emergency Management Agency to award the city $1 million for the pier. He requested about $1.8 million.

Commissioner Brian Seymour asked if the city could use reserves for pier costs if FEMA did not allocate money in time — or at all.

Murphy said reserves could cover costs, but it would be a hit for the $3,497,279 reserve account at the end of the current fiscal year.

For the 2018-19 fiscal year, Anna Maria will get $791,665 in total intergovernmental revenue, an increase of 46 percent from $542,725.89 in 2017-18.

Intergovernmental revenue is money from gas and sales taxes, due in part to a half-cent raise in sales tax by Manatee County renewed in 2016.

The money raised from the sales tax increase is allocated to roads, parks and other infrastructure.

The city projects a 31 percent increase in revenue from fines and forfeitures — from the current $109,446.32 to $143,000 in 2018-19.

Murphy said the estimate was based on the addition of two deputies, who have been effective in assessing fines and tickets.

Meanwhile, expenses for sheriff’s services will rise 1 percent, from $940,305.84 to $952,656.77.

“Even though we have two more deputies, last year, the number of $940,305 included two deputies for six months,” Murphy said. “This number, $952,656, includes two deputies for the entire year, and yet only a 1 percent increase.

“The reason for that is we’re getting younger deputies out here who can run faster and chase bad guys quicker — and don’t get paid as much,” Murphy said.

The city will earn an estimated $35,000 in interest revenue, an increase of 22 percent over this year.

Meanwhile, total expenses will rise 5 percent — or $124,225.75 — to $2,632,031.19.

Parks and recreation expenses will increase $46,592 or 13 percent, the largest spending bump.

According to Murphy, the increase is for improvements to city parks and the expansion of the Anna Maria Island Historical Society museum grounds.

Operating expenses will increase 6 percent — $5,863.60 — including new software that automates payroll and bookkeeping.

Wages for commissioners and the mayor will remain the same at $4,800 and $19,400 a year, respectively.

However, some city employees will receive raises.

Administrative salaries and wages will increase from $271,548.12 to $281,337.98 to fill a part-time position and cover a 3 percent raise.

Public works salaries and wages will increase 5 percent, from $376,904.81 to $393,866.44.

Budget meetings will be at 5:30 p.m. Thursday, Aug. 9, and Thursday, Aug. 23 — 30 minutes before regular commission meetings.

The first public budget hearing will be 5:30 p.m. Monday, Sept. 13, with the final public hearing and vote on the budget ordinance at 5:30 p.m. Thursday, Sept. 27.

 

Anna Maria budget by the numbers:

Revenue 2017-18FY 2018-19FY
Fines, Forfeitures $109,446.32 $143,000
Franchise Fees $147,335.52 $157,000
Interest $28,651.97 $35,000
Intergovernmental $542,725.89 $791,665
City Pier $7,750 $3,458,865.80
Miscellaneous/Carryover $1,294,010.76 $4,330,660.66
Donations etc. $25,000 $30,280
Taxes $2,037,798 $2,245,437
Total Revenues $4,184,968.45 $7,733,042.66

 

Expenses 2017-18FY 2018-19FY
Administration $597,861.57 $644,418.98
Commission $80,568.24 $81,700
Parks and Recreation $361,297 $407,889
Public Safety $940,305.84 $952,656.77
Public Works $528,224.29 $545,366.44
Total Expenses $2,508,256.94 $2,632,031.19

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