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Panama City approves lower tax rate

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PANAMA CITY — The Panama City Commission approved the rollback rate of 3.86 as its maximum millage for the 2014-15 budget but voted to keep the millage the same for the Downtown Improvement Board at 2.89, decreasing tax revenue for the organization.

A mill is equal to $1 for every $1,000 of taxable value.

Commissioners briefly discussed going with the 4.71 maximum rate for TRIM notices, due at the end of July, to allow for leeway. Panama City will have $21.8 million in reserves at the end of the 2014 fiscal year and agreed to use that funding in case of an emergency situation. The proposed budget actually calls for $3.34 million to be moved out of reserves to be used for capital projects.

“I can’t see a situation where we would raise taxes,” Commissioner John Kady said.

The commission is lowering the millage from 3.87, but with a 1.3 percent increase in property values, keeping the 3.87 number would have amounted to a revenue increase of $17,000. The total expenditures in the budget are $93,322,764.

Proposed capital improvements include the Jenks Avenue widening project north of 23rd Street at $1.6 million, resurfacing of Jenks from 15th Street to 23rd Street at $650,000, and improvements at Frank Nelson Soccer Complex for $450,000.

DIB

Keeping the Downtown Improvement Board’s millage the same will amount to a $2,000 decrease in revenue for the board, with property values falling 1.39 percent in the downtown area — Eighth Street to the marina along Harrison, with the western boundary at Jenks and the eastern boundary at Massalina Bayou.

The commission also asked for more financial information from the DIB concerning its budget, especially actual figures for two previous years to compare to the 2014-15 proposal.

“No individual has a higher tax burden than downtown merchants,” Kady said. “I tended to just rubber-stamp the budget with DIB; I’m taking it a little more seriously.”

Kady specifically questioned booth fees and beer sales. He believes the DIB should be making more money off beer, at least a 3-to-1 profit; it is currently at a 2-to-1 profit. 


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