- April 19, 2024
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Editor's note: This story was updated at 2:37 p.m. on Wednesday, July 20, to show that, while taxes are increasing since the city didn't adopt the rollback rate, the tax rate is decreasing by 4.58%.
The city of Ormond Beach is looking to raise its tax revenue by almost 6%, as the City Commission unanimously approved the adoption of the tentative millage rate on Tuesday, July 19.
Following a workshop held that afternoon, the commissioners decided to move forward with a millage rate of 3.7610 mills, which is 5.8% above the rollback rate of 3.5587 mills.
While it is certainly a tax increase, it is not as steep as the one originally proposed, said Mayor Bill Partington during the meeting.
“We talked about this in the workshop,” he said. “There’s no way around that. Oddly, it’s not as much of a tax increase as our residents on the Budget Advisory Board recommended to us, so that’s a curious government position to be in.”
The initially proposed millage was 3.8640, which was 8.58% above the rollback rate. The tax rate itself is decreasing by 4.58%, as the millage rate was set last year at 4.0308 mills. City Finance Director Kelly McGuire said in an email that the average homesteaded property owner would see a decrease in their city taxes of about $6.38.
"Rollback is a required state calculation that means a government will generate no new revenue," Mcguire wrote. "Rising inflation makes it difficult to adopt such a rate and continue the high level of service our residents expect. The city adopted a proposed rate that is higher than the rollback rate, however, most homesteaded property owners will pay less in city taxes next year."
City Commissioner Dwight Selby said that the supported the tentative millage rate, as amended by the commission, because the original budget proposal included general fund reserves being at 16.22%; the commission regularly aims for 15%.
“The difference is about $465,000,” Selby said. “I think that if our policy is 15% in reserves, we don’t need 16 and change. We need [15%], and that $465,000 should stay in the bank accounts of the taxpayers, not in the bank account of the city.”
According to the city manager’s budget message in the 2022-2023 proposed budget, the total budget for the city is projected to be over $108 million, which includes an operating/personnel budget of $91.8 million.
The city is anticipating $101 million in total revenues for the 2022-2023 fiscal year, and plans to use $7.33 million of its fund balance.
“This proposed budget serves the citizens of the community well by providing the funds necessary to maintain and improve infrastructure, ensure qualified and responsive fire and police protection, and offer amenities that define our community through committed, dedicated, and exceptional employees that remain steadfast in our goal to provide the highest quality service,” wrote City Manager Joyce Shanahan in her budget message.
Ormond Beach’s property values, as established by the property appraiser, have increased by 11.19%.
About $2.2 million of the millage rate generated by property taxes will go toward replacing public safety vehicles and equipment, parks and recreation improvements, transportation, stormwater improvements and utility system upgrades and vehicle replacements, according to the city.
There will be two public hearings regarding the city’s budget and millage rate. The first will take place at 7 p.m. on Wednesday, Sept. 7; and the second at 7 p.m. Wednesday, Sept. 21.
On Tuesday, July 19, the City Commission unanimously approved an amendment to a Planned Business Development that will allow the construction of a 310-unit apartment complex at 215 Williamson Blvd., the site of the former Regal Cinemas.
The last time the city permitted new multifamily development was in 2010 for the senior community of Madison Glen and the affordable housing apartment complex, Olive Grove.
Commissioners favored the project because of its location along a commercial roadway, the walkability future tenants will have to nearby stores and restaurants, and its aesthetic.
“I love this project,” City Commissioner Dwight Selby said. “I love it because it is so high-end and I haven’t a multifamily project like this anywhere.”
No one wants to live in a town with an abandoned movie theater, said Commissioner Rob Littleton, who added that the project is “the definition of smart growth” as densities will be compacted in a commercial corridor.
“I think this is the right redevelopment for this area,” Littleton said.
The City Commission also unanimously approved two special exceptions sought by the Ormond Memorial Art Museum: A new 24-square-foot sign, and an OK to have live outdoor music as part of scheduled outdoor events such as weddings and private parties.
Via its consent agenda, the commission approved a collective bargaining agreement between the city and the National Association of Government Employees that dictates annual wage increases for the next three years.
On Oct. 1, city employees will receive over a $1.53 an hour wage increase, a 3% increase or they will be brought to the minimum of their position’s pay range. In 2024, employees could see either a 2% or 3% increase, and in 2025, all will receive a 3.5% increase.
The agreement also added Veterans Day as a city-recognized holiday.
Negotiations with the firefighters union are being finalized.
