The Inverness City Council finalized its 2019-2020 budget last week, keeping the city’s millage rate at current levels.
The council vote was the second required by state statutes and ended a rising tax rate trend that had gone on for years.
In the second of two public hearings Thursday finalizing the budget, the council kept the current ad valorem rate of 8.2729 mills. During the previous 10 years, the council had increased the millage rate each year.
One mill in property, or ad valorem, taxes is equal to $1 for each $1,000 of the property’s taxable value.
So if a property is worth $75,000, after homestead exemptions, the property owner’s city property taxes will be $620.47. That does not include county or school taxes.
In his budget presentation, City Manager Frank DiGiovanni estimated that ad valorem taxes would generate nearly $3.84 million. That was based on the city’s assessed taxable value of $485 million, a 5.65% increase over the previous year.
That growth allowed him to request that the millage rate remain the same despite an increase in service costs such as for law enforcement and money set aside for potential employee raises.
The rollback rate is 7.9034 mills. The rollback rate is the millage rate that the city could have set that would have generated the same amount of revenue as last year.
The total general-fund budget, including reserves and fund transfers from other revenue streams, is a proposed $17.78 million. The city’s total budget is $42 million.