Millage Rate Tentatively Set

At the special board meeting held today to tentative adopt a millage rate for fiscal year 2008/09; the City Commission set the rate at 6.125 mils up by .345 from last year’s rate of 5.78 mils.

Prior to legislation intended to give property tax relief, a taxing authority could impose up to the maximum rate of 10 mils. However, with the passage of Amendment 1, voters gave the State the authority to set the maximum millage rate that a city or county could levy. The rate can always be lowered but not increased. The State has set the City of Apalachicola maximum rate at 6.125 mils; the City Commissioners met today and voted to tentative accept that rate.

In addition, due to the sharp decline in the taxable value of property, the City of Apalachicola will actually see a $17,945,295, decrease in the overall value, down from $227,675,057 to $209,729,762 or about 8 percent.

As a result, should the city decide to adopt the tentative rate of 6.125 as the final rate, this would result in a small tax reduction of only $31,367. On the other hand, should we keep the prior rate of 5.78; this would reduce the overall tax burden on the citizens of this city by $103,724.

However, to deliver meaningful tax cuts, City Commissioners are going to have to reduce the millage rate below the prior year’s rate. This measure may necessitate cuts in personnel and some city services. One mil in the City of Apalachicola only generates about $209,732 in taxable revenue. A full mil reduction in the current 5.78 rate to 4.78 mils would give the citizens of this city an overall property tax cut of $313,454.

Prior Year Property Values - $227,675,057

Millage Rate – 5.78

Tax Proceeds - $1,315,962

Current Year Property Values – $209,729,762

Millage Rate – 6.125

Tax Proceeds - $1,284,595

Reduction - $31,367

Millage Rate – 5.78

Tax Proceeds - $1,212,238

Reduction - $103,724

Millage Rate - 4.78 mils

Tax Proceeds - $1,002,508

Reduction - $313,454

Scheduled to meet on August 4, to review the city’s budget is the newly appointed Citizen Budget Committee; their meeting is set prior to the City Commission budget workshops scheduled for August 12 and 26. As always, the public is welcome and encouraged to attend.