SPRINGFIELD — Although the Springfield City Commission will discuss approving a 5- or 5.5-mill property tax Monday, Mayor Ralph Hammond said Friday the city is aiming for a final tax in the range of 3 to 3.5 mills in September.
However, Springfield must submit a “truth in millage” (TRIM) rate notice to the Bay County Tax Collector, which can then be lowered later.
Local governments are required by state law to approve a TRIM rate, or the maximum tax rate. The final levy approved in September cannot exceed the TRIM rate but can be lowered, which Hammond expects.
Hammond said at a budget workshop Thursday that a millage rate of at least 4.16 would be required to pay for the city’s $810,905 budget deficit. He said that number is accurate but he hopes the city will receive grants for road paving and police cars to help make up a potential tax difference.
“That’s what I’m estimating,” Hammond said of the 3- to 3.5-mill figure.
If the city decided to pursue a millage between 4.16 and 5 mills, Springfield would have the second highest tax rate for a municipality in Bay County. Only Mexico Beach, at 5.03 mills, would be higher.
Springfield has only two options: either install a property tax to pay off the deficit or dissolve into Bay County, Hammond said.
“It’s us or if the county takes us over, they’ll do a special tax,” he said. “Somebody is going to tax it.”
Springfield is one of three cities in Bay County without a property tax — Panama City Beach and Parker are the other two. Hammond said PCB has the advantage of a sales tax and Parker is about half Springfield’s size, so its needs are less.
WANT TO GO?
-What: Springfield City Commission meeting
-When: 5:30 p.m. Monday
-Where: City Hall, 3529 E. Third St.