Anna Maria city officials already locked in a tax reduction for fiscal 2024-25.
But the final municipal budget and final millage rate need to be adopted.
City commissioners unanimously voted Sept. 11 on motions to approve first readings for a proposed $21,240,929 budget and a 1.65 millage rate.
Commissioner Charlie Salem attended via speakerphone and was allowed by unanimous vote to participate and vote remotely.
The biggest change residents can expect for the upcoming fiscal year, which begins Oct. 1, is a reduction in ad valorem property taxes.
The city’s 1.65 maximum millage rate — the amount per $1,000 of property value used to calculate property taxes — is a 19.52% reduction from its current 2.05 millage rate and 9.17% lower than the 1.8164 rollback rate.
The rollback rate would have raised the same amount of ad valorem tax revenue as the city raised this year, so implementing a lower millage guarantees a reduction in property taxes.
The owner of a property appraised at $500,000 would pay $825 in property taxes under the 1.65 millage rate, as opposed to $1,025 in ad valorem taxes under the current rate of 2.05 mills.
Commissioner Gary McMullen “very proudly” moved to adopt the tentative 1.65 millage rate for a first hearing.
Commissioner Kathleen Morgan-Johnson seconded the motion, which passed.
Mayor Dan Murphy said the tax reduction should “immunize” the city from state-led consolidation efforts.
Murphy said the city sported lower millage rates than Bradenton, Bradenton Beach and Holmes Beach, so consolidating with any of them would create an increase in taxes for Anna Maria property owners.
He said he would write a letter to Sen. Jim Boyd and Rep. Will Robinson Jr., both R-Bradenton, to state that the city should no longer be included in the consolidation/dissolution discussion.
“We’ve done our duty,” Murphy said. “This is a major accomplishment.”
Despite the tax reduction, the city’s proposed budget includes a 5% salary increase across the board for municipal employees and a $184,042 increase for the cost of contracting the Manatee County Sheriff’s Office for law enforcement services.
The proposed budget also includes $10,406,280.63 for capital expenses, including $3,654,059 to improve Pine Avenue sidewalks and for $2,474,995 in stormwater capital improvements to allow recovery from Hurricane Idalia.
McMullen moved to adopt the proposed $21,240,929 budget for a first hearing.
Commissioner Jonathan Crane seconded the motion, which passed.
There were no public comments.
A second reading and final public hearing for the proposed budget ordinance and millage rate will be at 5:01 p.m. Thursday, Sept. 26, at city hall, 10005 Gulf Drive.
Directions to attend via Zoom can be found on the city’s website, cityofannamaria.com.
Into the numbers…
Budget Category 2023-24 adopted 2024-25 proposed
Revenues
Ad Valorem Taxes $4,202,723 $3,855,638
Intergovernmental $748,528 $748,528
Grants & Rebates $65,560 $65,560
Franchise Fees $165,000 $165,000
Licenses, Permits & Fees $1,439,025 $1,577,000
Stormwater Fees, Grants & Permits $1,741,534 $3,000,230
Fines and Forfeitures $290,500 $342,000
Interest and Miscellaneous $6,036,425 8,051,885
Expenditures
General Government $2,849,214 $2,812,444
Public Safety $1,361,780 $1,545,822
Public Works $4,426,789 $4,682,043
Planning & Development $984,506 $1,015,219
Parks & Recreation $454,525 $461,345
Stormwater $1,741,534 $3,000,230
Capital Outlay $2,678,603 $4,096,394
Debt Service $192,344 $192,344
Total Budget
Reserves $3,202,111 $3,435,088
Total Expenditures/Revenues $17,891,406 $21,240,929
— Ryan Paice