AM commissioners discuss tax increase, uncertain revenues

Anna Maria’s 2020-21 budget is taking shape.

City commissioners voted 5-0 July 30 to approve a proposed tentative millage of 2.0500 mills, the same rate the city has adopted for the past six years.

Mayor Dan Murphy said the city has had the lowest ad valorem tax rate on the island for several years and he wanted to keep it that way.

He recommended the commission move forward tentatively with 2.0500 mills with the maximum rate of 2.2253 mills, which can be lowered.

“I have enough confidence in the team that we’ve got to know we can handle anything,” Murphy said. “We can make it.”

The recurring rate is a tax increase for property owners, although the city’s taxable property increased in value from $1,200,147,787 in 2019 to $1,272,068,427 in 2020.

Millage is $1 per $1,000 of assessed property value, so the owner of a $500,000 property would pay $1,025 in ad valorem tax at the proposed 2.0500 millage rate. The proposed rate would earn the city $2,607,740 in revenue

At the rollback rate, 1.9599 mills, the owner of a property valued at $500,000 would pay $979.95. The rollback rate — the rate needed to produce the same revenue as the current year would produce $2,573,394 for the city — $34,346 less than the proposed rate.

Under the maximum 2.2253 mills, the owner of a property valued at $500,000 property would pay $1,112.65 in ad valorem tax. The maximum rate would net the city $222,994 more than the proposed rate.

Commissioner Amy Tripp moved to approve the proposed 2.0500 tentative millage rate.

Commissioner Joe Muscatello seconded the motion.

Murphy also highlighted projected revenues for the 2020-21 fiscal year, which begins Oct. 1, including ad valorem revenue of $6,841,459.75.

The number would mark a $1 million-plus drop from the 2019-20 revenue of $7,859,405.

Ad valorem taxes provide the largest chunk of the city’s revenue for the upcoming year, but stormwater revenues aren’t far behind at $1,280,847.

Murphy said the city is expecting a surplus of stormwater revenues for 2020-21 because of carryover and a $750,000 grant from the Southwest Florida Water Management District for drainage improvements.

License and permit fees are projected as the next largest revenue source at $1,182,500.

Murphy said the city also projected an increase in intergovernmental revenue from $564,140.46 in 2019-20 to $651,239.80 in 2020-21.

However, he said, “Our confidence in those numbers isn’t so strong.”

Commissioners will meet at 2 p.m. Thursday, Aug. 13, at city hall, 10005 Gulf Drive, to discuss projected expenses for the upcoming fiscal year.

Commissioners will meet at 2 p.m. Thursday, Sept. 10, at city hall to hold a first reading and public hearing for the revenue and spending plans.

The final reading and public hearing for the budget will be at 6 p.m. Thursday, Sept. 24, at city hall.

 

Anna Maria City pier revenue, spending: Out of balance

City pier expenditures:

  • Permitting, engineering, architect: $771,338.37;
  • Demolition: $732,000;
  • Platform construction: $3,969,714.33;
  • Building construction: $999,671.25;
  • Miscellaneous: $328,615.86;

Total: $6,801,339.81.

City pier funding sources:

  • Manatee County Tourist Development Council: $1,935,000;
  • Federal Emergency Management Agency, federal portion: $809,927.25;
  • Federal Emergency Management Agency, state portion: $134,987.88;
  • GoFundMe.com: $10,400;
  • State appropriations: $1,035,000;
  • Manatee County surplus concession fund: $333,000;

Total: $4,258,315.13.

The city did not respond to a request for more details about the revenue shortfall by The Islander’s press time.

 

By the numbers

Proposed 2020-21 revenues: $6,841,459.75.

2019-20 adopted revenues: $7,859,405.

2019-20 actual revenues to date: $6,369,965.42.

Maximum 2020-21 millage rate: 2.2253 mills.

Proposed 2020-21 millage rate: 2.0500 mills.

Rollback rate: 1.9599 mills.

2019-20 millage rate: 2.0500 mills.

Total 2019 assessed property value: $1,200,147,787.

Total 2020 assessed property value: $1,272,068,427.

First public hearing for the budget: 2 p.m. Thursday, Sept. 10.

Final public hearing for the budget: 6 p.m. Thursday, Sept. 24.