PANAMA CITY — Homeowners pleaded with the Bay County Commission on Tuesday night to either not raise property taxes or trim what they were proposing, saying they could not afford a nearly 27 percent tax hike.
But the commission, saying it had little choice, tentatively approved of the 1 mill increase that would add $142.75 to the bill of a home valued at $150,000 with a homestead exemption.
One more final public hearing on the proposal is scheduled on Sept. 23 at 5:01 p.m. in the Bay County Government Center.
Commissioners on Tuesday night approved a resolution adopting the county’s overall budget for the coming fiscal year, which would be funded from an increase in the general millage rate from 3.65 to 4.65. One mill equates to $1 of tax for every $1,000 of value.
The commission also gave tentative approval to a .0475 increase in the millage rate for the Mosquito Control District, which is about $4.75 a year for the owner of the $150,000 home. Commissioners also tentatively approved a 0.38 millage increase for the Fire Services Taxing District, which adds up to about $38 a year for the owner of the same home.
The total aggregate millage rate for the coming fiscal year is proposed to be 5.26 mills, a 26.31 percent increase over the aggregate rolled-back rate of 4.17. The rolled back rate is the millage rate that would have generated the same amount of revenue as last fiscal year.
The increase is entirely too much, residents said.
Yolanda Salas, a Panama City Beach resident, said she and her husband who not only live on the beach but have home rentals are being hit with a “double whammy.”
She said the property values have risen on the properties at the same time the county is considering the tax increase.
“If the millage increase is adopted, we will personally experience (tax increases on several properties), so I’m hoping that we’re going to find a compromise.”
Dean Glidewell of Panama City Beach urged the commission to look at the situation through the eyes of an average citizen.
“I took a 25 percent pay decrease last year and I didn’t have the ability to go grab money out of somebody else’s pocket during that situation, and that’s the way I see it,” he said. “(With) any private business if you guys brought a 26 percent increase to the budget without figuring out the revenues coming in, you’d all be fired. That’s not the way normal life works.”
Ron Steensland of Callaway said he didn’t know how he would pay the bill.
“My wife and I are living on a fixed income and I don’t know where we’re going to find 27 percent increase in our operating budget,” he said.
Commissioners have said the property tax increase is necessary this year because tax rates have stayed the same during the recent recession despite declining property values, which meant the county had less revenue each year to cover expenses. As a result, the county has had to dip into reserves to pay the budget.
Those reserves are so depleted that if the millage rate doesn’t increase by the end of fiscal year 2014-15, there would almost be nothing left, budget officer Ashley Stukey said earlier this week.
CountyCommissionerBill Dozier explained the county’s situation at the meeting.
“We have no more cash to burn off and we’re at the point now to where we’re going to be in a negative,” he said.
But the tax hike would not only bolster reserves.
The additional millage increase, which is expected to generate $14.3 million, is proposed to be spent on, among other things: 30 new sheriff’s vehicles at a cost of $282,000; nine new detention officers for the Bay County jail at a cost $440,000; a 3 percent salary increase for county employees at a cost $350,000; $1 million for road resurfacing; $700,000 for an increase in the amount that the county pays the state for the Department of Juvenile Justice; $390,000 for computers and servers and an animal control communications position at a salary package worth $48,000.
Commissioners said they agonized over increasing the tax rate this year. Several said they would look at lowering the rate next year if property values increase. There have been minor increases in property values in the last couple of years.
Commissioner George Gainer said county officials have deliberated in workshops how to fund budget needs such as sheriff’s cars and resurfacing.
“We didn’t do this lightly,” he said. “We just did a whole lot of soul searching, especially for me because I’ve just always tried very hard not to raise taxes. ... I understand that it would be very irresponsible for us to let the county deteriorate any further than we are looking at right now.”
He said hopefully building permits will pick up next year and the tax base will increase. If that happens, he said he will make the motion next year to reduce the millage rate.
Commissioners also said that property taxes could possibly be reduced in the coming years if a sales tax is passed. Commissioners have discussed a half-cent sales tax to pay for road resurfacing.
The commission also approved of a last minute budget amendment to grant $50,000 to the Panama City Marine Institute, a not-for-profit organization offering youth alternative educational counseling and vocational training. The funds would replace the roof of its buildings and windows, which are leaking and nearly 41 years old.