Anna Maria property owners can look forward to a tax reduction in fiscal 2024-25.
City commissioners voted 3-2 July 25 to set a 1.65 maximum millage rate for the upcoming fiscal year, which begins Oct. 1.
Commissioners Jonathan Crane and Mark Short voted “no.”
Short told The Islander after the meeting that he voted in opposition since he preferred Mayor Dan Murphy’s proposed 1.75 millage for a tentative rate from which the city could explore further reductions as the process progressed.
The millage rate is the amount per $1,000 of property value used to calculate property taxes.
The city’s current millage is 2.05 mills. The owner of a property appraised at $500,000 pays $1,025 in property taxes at that rate.
Due to a 14% increase in total taxable property value within the municipality over the past year, the city would have to adopt a rollback rate of 1.8164 mills to avoid a tax increase.
The owner of a $500,000 property would pay $908.2 in property taxes under the rollback rate.
However, the 1.65 maximum millage rate commissioners set for fiscal 2024-25 guarantees a tax reduction.
The owner of a $500,000 property would pay $825 in property taxes at that rate — a 9.17% reduction in taxes from the rollback rate and a 19.52% reduction from the current 2.05 millage.
While presenting plans for fiscal 2024-25, Murphy proposed a maximum millage rate of 1.75 mills as they continue to review the budget.
His proposed millage rate would have resulted in $4,089,313 in ad valorem taxes, with $1,211,533.48 of that going toward a contingency fund.
Commissioner Gary McMullen asked if the city could lower the millage rate past 1.75 to get closer to its $981,851 contingency fund for this year.
Murphy said a 1.65 millage rate would result in a contingency fund closer to this year’s.
Commissioner Charlie Salem expressed support for setting the millage rate to 1.65 mills, as well as for doubling the current $25,000 property tax exemption for seniors to $50,000.
Changing the senior exemption would require the city to hold two public hearings and adopt an ordinance.
Murphy said he would commit to exploring the idea.
Crane said he supported Murphy’s proposed 1.75 millage rate but 1.65 was too low for a tentative rate. He added that he wanted to find a rate the city could maintain for fiscal 2025-26 so the municipality would not appear unstable.
During public comment, two property owners expressed support for the lowest possible millage.
One of them was former city commissioner and mayoral candidate Brian Seymour. “I want to applaud the mayor and commissioners for considering this,” he said. “I think it’s long overdue with our property values that have doubled — if not tripled — in the 15 years I’ve lived here.”
Salem moved to set the maximum millage rate at 1.65 mills.
McMullen seconded the motion, which passed.
Murphy said, “I think you served this city very well in doing so. This is the way government is supposed to work.”
City attorney Becky Vose said she has practiced local government law for 51 years and had never seen such a tax reduction happen.
“I’m really proud of y’all,” Vose said.
Capital expense budget
Murphy also presented the city’s plans for a $10,406,280.63 capital projects budget for fiscal 2024-25.
The bulk of that budget is $6,904,289 for existing projects, including $3,654,059 to improve Pine Avenue sidewalks and for $2,474,995 in stormwater capital improvements.
New capital projects include:
- $288,000 for a public comfort station;
- $175,000 to redesign the Island Players parking lot, 10009 Gulf Drive;
- $94,000 to study permanent solutions to dredging the Lake La Vista channel;
- $75,000 for a shade sail on the T-end of the Anna Maria City Pier;
- $70,000 for a shade sail at City Pier Park, 103 N. Bay Blvd.
The city commission will continue its discussion of the fiscal 2024-25 budget at its next meeting at 1 p.m. Thursday, Aug. 8, at city hall, 10005 Gulf Drive.
Anna Maria’s numbers…
Capital expenses 2023-24 end estimate 2024-25 proposed
Road maintenance $673,752.98 $250,000
Pine Avenue sidewalks $288,990.23 $3,654,059
Total public works $962,743.21 $3,904,059
Stormwater maintenance $0 $525,235
Stormwater improvements $556,318.43 $3,000,230
Total stormwater $556,318.43 $3,000,230
Total existing capital projects $1,519,061.64 $6,904,289
Total new capital projects not available $3,501,991.63
Contingency $981,851 $1,211,533.48
Total not available $10,406,280.63
— Ryan Paice
