SEBASTIAN — In two contentious 3-2 votes, the Sebastian City Council tentatively adopted a higher property tax rate than currently levied, effectively overriding the City staff’s recommendation to keep taxes even.
The Council approved a millage rate of 3.8556, which is higher than last year’s rate of 3.7166, and tentatively approved the proposed fiscal year 2014-15 budget, supporting recommendations by the Citizen’s Budget Review Advisory Board. That budget is expected to be $10.86 million.
Council narrowly approved the Board’s recommendation to add four items they had determined, after several meetings and lengthy discussion, were worthy of inclusion, based on previous Council comments and public input: road resurfacing, the Indian River Lagoon, All Aboard Florida and a matching COPs program grant.
The Budget Review Board also recommending that budgeted money saved through insurance premium adjustments also be applied to road resurfacing.
Keeping the 3.7166 millage rate would have added $145,054 of revenue, and required an additional $2.79 on a $100,000 homestead property. Last year, property owners paid $185.83. This year, they would have paid $188.62 for the same $100,000 homesteaded property.
The 3.8556 rate is expected to add $265,038 above the rolled-back rate (the rate required to generate the same amount as last year), and would require an additional $9.84 for a $100,000 homestead property. The same rate last year would have cost $185.83. This year, it would cost $195.67 for the same $100,000 homesteaded property.
Speaking to the staff recommendation, Administrative Services Director Ken Killgore told Council the additional revenue generated by keeping the rate at 3.7166, plus the net savings of $57,000 from the insurance adjustments, would result in $200,000 that could be applied to street resurfacing work, which staff emphasized was desperately needed, sooner rather than later, as costs will climb sharply as time passes.
The meeting was atypical in that four of the five candidates for City Council were present, the two incumbents – Jerome Adams and Jim Hill – on the dias, Ed Herlihy present in his capacity as Chair of the Budget Review Board; and Albert Iovino, the sole member of the public present.
Herlihy reviewed the Board recommendation, including specific expenditures for each, as Council had requested, pointing out that the Council has frequently voiced the need for action to be taken on behalf of the lagoon and All Aboard Florida.
He reiterated the Board’s strong opinion that the $5 million emergency reserve fund should be used for natural disasters, not operations.
Iovino told the Council that he believes any lagoon expenditures and road resurfacing should come from the reserve fund, rather than raise taxes, opining that the $200,000 for roadwork wouldn’t take much of a bite out of the reserve in any case.
Casting the three “Yes” votes, Mayor Bob McPartlan and Council members Andrea Coy and Richard Gillmor all expressed opinion that the additional budget items were sufficiently important to increase the millage.
McPartlan pointed out that the Council meetings with the largest public attendance were always concerning either All Aboard Florida or the lagoon.
In opposition, Adams felt the lower rate would still provide for the street repairs, and Hill vehemently voiced his belief that the additional funds requested were nothing more than “slush funds” bloating the budget.
On Sept. 24, at the regular City Council meeting, the final FY 15 Millage and Budget Hearing will take place. The Council is expected to take a final vote on the millage rate and budget at that time.
