SEBASTIAN — The Sebastian City Council is considering keeping its higher, proposed property tax rate in order to continue funding road improvements. All but one member of council voiced support for the higher rate, which would generate nearly $119,000 extra in revenue earmarked solely for road repaving and resurfacing projects.
That $119,000 could fund the fixing of about two miles of roads in the city, according to City Manager Al Minner.
Mayor Jim Hill, who is seeking re-election, voiced concerns about going to the higher tax rate – 3.7166 mills – at this point.
“I’m very concerned that we may be a little bit premature in increasing our taxes,” Hill said. He also raised concerns that, given the continued drop in residential property values, businesses – including commercial and industrial property owners – would ultimately be burdened by the tax rate increase.
“The business community is really going to pay a lot,” he said, adding that the council was also considering a $1/month increase to its stormwater fee.
“Someone’s going to see the increase,” Hill said, later adding, “We don’t want to do any harm to the business community.”
Hill said that he would be willing to reconsider his position on the higher tax rate once he finds out from staff what the financial impact could be on the commercial and industrial property owners and their tenants.
Minner said he would research the issue and report back.
Instead of supporting the higher tax rate, Hill said he could support the “rollback” rate – 3.5646 mills – the rate that would allow the city to collect the same tax revenue as last year.
That rate, while it balances the budget, would not afford any road improvements, according to Minner.
The city’s Budget Advisory Committee unanimously rejected staying at the rollback rate and, instead, recommends the city move forward with the 3.7166 millage rate.
Millage is assessed per $1,000 of property’s taxable value.
According to Minner’s presentation during a special budget workshop of the Sebastian City Council, the average Sebastian home’s assessed value in 2012 is $135,000. Less the $50,000 Homestead exemption, the typical property owner paid approximately $280.85 to the City of Sebastian.
Under the rollback rate of $3.56 per $1,000 of assessed value, that same property owner could expect to pay $6.73 less, given the average 6 percent decline in property values.
If the council were to approve the approximate $3.72 millage, the owner could expect to pay $4.96 more than the year before.
Vice Mayor Don Wright said he could support the tax increase to fund the road improvements, though the $119,000 would not be enough to solve the maintenance issue long-term.
“While we’re getting some money, it’s way short,” Wright said.
Minner said the $119,000 is about a third of what the city really needs to have budgeted to maintain the city’s road system.
Hill questioned the need for road funding for the next fiscal year given the hundreds of thousands of dollars the city has spent over the last few years.
This year, the city has programmed $200,000 in projects and the year before saw $500,000, he pointed out.
Wright said that it would still be best for the city to keep putting money into the roads because if they deteriorate too badly, they will cost even more to repair.
“I don’t think that’s a gamble we should take,” Wright said.
Council members Richard Gillmor, Andrea Coy and Bob McPartlan agreed.
