Punta Gorda backs rollback millage rate for budget

Punta Gorda residents will have their first opportunity to comment Sept. 9 on the city’s proposed millage rate for the upcoming budget year, when City Council holds the first of three required public hearings.

The 5:01 p.m. hearing in Council chambers, 326 W. Marion Ave., comes as city officials prepare for the potential impact of a proposed constitutional amendment on the Nov. 3 general election ballot. If approved, the measure would increase Florida’s homestead exemption and reduce property tax revenue for municipalities and counties across the state.

Punta Gorda Finance Director Kristin Simeone presented several millage options to City Council. By a 4-1 vote, with Mayor Dr. Debi Lux casting the lone dissenting vote, council members expressed support for a rollback rate of 4.0074, which is projected to generate $19,474,995 in ad valorem revenue.

Simeone said the rollback rate accounts for new construction and properties that were on the prior year’s tax roll. Based on preliminary estimates, it would generate $134,895 more in revenue than the previous year.

Council member Jeannine Polk said that although the rollback rate of 4.0074 is higher than the current millage rate, taxes would not increase because the assessed value of the tax roll is down 3%.

Lux said she preferred a millage rate of 3.9797, which is expected to generate $19,340,380 in revenue. Early estimates show that rate would produce ad valorem revenue 0.69% below the rollback rate while still providing a modest revenue increase of $280.

The city's current millage rate of 3.8686 generated $18,800,460 in ad valorem revenue and is 3.46% below the rollback rate, reducing revenue by $539,640.

Simeone said the rollback rate can be lowered after it is proposed but cannot be increased once it is adopted.

Lux said the city should look for other ways to save money and questioned the maximum 4% merit increase for city employees, suggesting it should be capped at 2% instead.

City Manager Melissa Reichert said that while City Council has the authority to change the merit increase threshold, not every employee receives a 4% merit increase. She cautioned that reducing the maximum merit increase would lead to employee turnover and force the city to spend money recruiting and advertising to fill vacant positions.

Reichert also noted that city employees have weathered several hurricanes and have often been praised by City Council for their dedication to serving the community.

Two additional public hearings on the millage rate will be held after the Sept. 9 meeting, Polk said.