Rising real estate values enabled Port St. Lucie officials to propose cutting the city property tax rate by 20 cents for the upcoming year.
But the typical homeowner would still pay $7.17 more in city property taxes in 2019-2020 because of the 3 percent increase in taxable values allowed under the state homestead cap.
The tax rate reduction was among the highlights of City Manager Russ Blackburn’s proposed $450 million budget for 2019-2020.
Blackburn and Budget and Management Director Jeff Snyder held a news conference Thursday at City Hall to discuss the budget proposal for the fiscal year starting Oct. 1.
Under the proposed aggregate property tax rate of $6.10 per $1,000 of assessed value, the owner of a home with a taxable value of $121,695 would pay $742.34 in city property taxes for 2019-2020.
The owner of that same home had a city property tax bill of $735.17 for 2018-2019, even though the tax rate was $6.30 per $1,000 of assessed value, city records show. The bill increased because of the $5,001 rise in the house’s taxable value.
If approved by the City Council, it would be the fourth straight year the property tax rate went down. The council raised the property tax rate by $1 per $1,000 of assessed value for 2015-2016 to deal with failed economic development projects.
An 11 percent increase in the taxable value of Port St. Lucie’s real estate last year enabled Blackburn and Snyder to propose a 20-cent cut in the tax rate dedicated to repay the debt for the Crosstown Parkway.
Blackburn proposed a property tax rate of just under $1.02 per $1,000 of assessed value for repaying the Crosstown Parkway debt, compared to just under $1.22 in 2018-2019.
The city first borrowed money for the Crosstown Parkway project in 2005, city records show.
The city still owes nearly $62 million in principal on the current loan, which is set to be paid off on July 1, 2035, city records show. That’s when the property tax rate will sunset.
The grand opening celebration for the Crosstown Parkway Bridge to U.S. 1 is set to begin 9 a.m., Sept. 28. The new east-west thoroughfare is expected to relieve chronic traffic congestion on Port St. Lucie, Prima Vista and St. Lucie West boulevards.
The City Council is to set the budget and property tax rate during daylong meetings set for July 24, 25 and 26. The budget and property tax rate will be finalized during public hearings on Sept. 9 and 23.
