LYNN HAVEN — Taxes are going up about 25 percent in Lynn Haven.
The City Commission on Monday approved increasing taxes from 3.088 mills to 3.9 mills. The increase means the owners of a home with a taxable value of $100,000 will pay $390 in city property tax next year. One mill equates to $1 of tax for every $1,000 of value.
The city had been operating with 3.087 mills since 2008.
Residents like Frannie Scofield and Rich Walker were upset to see such a large increase at once. Scofield noted that her property taxes went up by $400. The commission had already voted to increase water and sewer rates by 3.6 percent and stormwater and garbage rates by 2.1 percent.
“I myself would like to see an impact in quality,” Scofield said.
Walker suggested a sales tax to move the revenue burden onto visitors. Mayor Walter Kelly said city officials have discussed a transportation tax — a gas tax used specifically for roads — with Panama City. The two cities would lobby the state to apply the tax. Commissioner Joseph Ashbrook added that the city cannot enact a sales tax by state law. Panama City has a merchant license fee, similar to a sales tax, which it was allowed to keep because it predated state law.
City Manager Joel Schubert briefly outlined what the city will do with the more than $800,000 in additional ad valorem revenue.
First, the city will not have to dip into the about $5 million in reserve to balance the budget and will use $800,000 from the enterprise fund — water, sewer, sanitation and stormwater — instead of $1.7 million. City employees will receive a cost of living raise of 2.1 percent, although there will be a subsequent salary freeze. The city will use $400,000 to pay for a culvert for the 17th Street ditch and $100,000 for three new police cars. Also budgeted is $2.5 million for wastewater treatment filters, although Schubert said that expense will be bonded.
“Our millage rate is in line with other cities. Our water rates are in line with other cities,” Schubert said. “We’ve cut every expense we know how to do.”
The commission also approved a $340,016 budget for the Community Redevelopment Agency and $192,970 budget for Main Street.
In other business, the commission:
-Approved development orders for DaVita Dialysis at 24th Street and Minnesota Avenue, 6,409 square feet, and Wal-Mart liquor store extension at State 77, 3,904 square feet.
-Approved a two-year contract with Almega Sports for sports uniforms.
-Discussed changing city ordinances to allow residents to keep some chickens.