SEBASTIAN — Sebastian tax payers can expect a drop in their city portion of their property taxes. The Sebastian City Council unanimously approved keeping the tax rate the same as last year’s, meaning taxes will go down for those whose property values have declined.
The city is preparing for $513,000 in lost revenue due to declining property values and lower revenues from other sources, including franchise and utility fees.
The proposed property tax rate – or millage – is 3.3041 and is less than the “roll-back” rate the city could set to bring in the same revenues as last year.
“This does squeeze you a little bit,” City Manager Al Minner told the City Council during his presentation, explaining that by setting the tax rate as last year’s, the city won’t easily be able to increase it during the budget process if there is a need.
Last year, the City Council agreed to advertising a higher tax rate with every intention of dropping it back down to give them wiggle room in the budget.
Councilman Eugene Wolff questioned the process that has the city determine the tax rate before the budget.
Minner agreed, but cited statutes that require the process be done in this way.
He told the council that he was comfortable with setting the same millage rate and trimming from the budget because the city has a better handle on its expenses this year.
He said last year he needed flexibility because the city was dealing with collective bargaining, health insurance and other such issues. This year, those items are expected to hold the line.
Councilwoman Andrea Coy said she was prepared to keep the tax rate the same.
“I don’t mind letting the public feel at ease,” she said.
The City Council will hold a special budget workshop on Monday Aug. 22 and follow up with two budget hearings set for Monday Sept. 19 and Wednesday Sept. 28. All the meetings will be held in the City Council Chambers at Sebastian City Hall.