Punta Gorda backs property tax rate below rollback

Concerns over rising costs and the possible loss of revenue from property taxes and the 1% Local Option Sales Tax permeated discussion among Punta Gorda City Council members, who voted 4-1 to adopt a tentative millage rate of 3.9928, below the rollback rate of 4.0074. 

One mill equals $1 in tax for every $1,000 of taxable property value. 

City Council will determine the final millage rate at its budget meeting Sept. 23 at 5:01 p.m. at City Hall, 326 W. Marion Ave. 

Vice Mayor Jeannine Polk said last year was the first time in 12 years that City Council adopted the rollback rate. She said the 3.9928 millage rate, if adopted, would mean the city collects about $70,000 less in ad valorem revenue than it would under the rollback rate — $19,404,045 compared with $19,474,995. 

Councilmember Greg Julian voted against the lower millage rate, saying he wanted to maintain the rollback rate. 

Finance Director Kristin Simeone presented the city’s $219,202,087 fiscal year 2027 budget and noted that ad valorem revenue accounts for only 12% of the city’s total budget. 

She said the city would be “fully covered through 2028,” after which officials would “have to look further” for funding sources should Amendment 3 be approved by voters and the 1% Local Option Sales Tax extension fail at the Nov. 3 election. 

Polk said she was concerned about maintaining enough money in reserves for future emergencies. 

Council members also discussed unexpected expenses. Mayor Dr. Debi Lux said the city recently had to spend $1 million on encrypted radios that had not been included in the budget. 

Salary increases and new hires also were discussed. 

Simeone said grants totaling $389,090 are not reflected in the budget. 

Other additions include two new employees in public safety, as well as expenses for information technology subscriptions. 

The city’s budget continues to provide funding for paving, drainage, infrastructure and maintenance programs, as well as emergency vehicles and fleet equipment. 

When asked what the city did during the recession years of 2008 to 2013, Simeone said changes were made to employee benefits and the reserve balance was reduced to 5%. Early retirement was offered, and some expenses, including training, were eliminated or reduced. 

She noted that reducing training was “not a good thing because the city wants qualified individuals.” 

Several council members noted the high cost of living affecting residents and agreed they should be given some relief amid other rising expenses, including canal maintenance fees.