City Taxes Going Up? Maybe Not

New Port Richey City Council members agreed to set the tentative millage rate for the upcoming fiscal year at the so-called rollback rate of 9.882 mills to give them some breathing room as they craft the city’s spending plan.  

The “rollback” rate is intended to generate basically the same level of tax revenue as was generated under the current rate of 9.577 mills per $1,000 of property value, despite a recent dip in property values. In accounting, one mill equals $1 for every $1,000 of taxable property value.

The millage rate isn't set in stone and won't be decided for sure until Sept. 23.

Although the millage rate is a higher number, state authorities don't consider the rollback a tax increase. It's unclear whether property owners will see an increase in their tax bills.

The rate is expected to generate an additional $120,000 in net tax revenue. 

The council intends to revisit the rate later in the budgeting process. They can still lower it before they pass the city’s spending plan at the end of September.

City staff’s proposed general fund budget, which pays for most city services, for the upcoming fiscal year is $17.1 million, 3.3 percent higher than the current year’s budget. The overall proposed budget for the city is $50.3 million, 14 percent higher than the current budget of $44 million. City staff proposed keeping the millage at its current rate.

City Council members, however, opted to go with the rollback rate, expressing that it could give them some room to maneuver if any unexpected expenses arise.

“We’ve got a lot of stuff left to go through,” Deputy Mayor Bill Phillips said of the budget process.

Councilwoman Judy DeBella Thomas echoed Phillips and Councilman Jeff Starkey expressed that he wanted to see if the city could get its millage rate lower than the current years.

The City Council laid off employees and raised the millage rate last year when crafting the city’s budget for this current year.

The proposed budget for the upcoming year proposes no layoffs.  

None of the council members said they wanted a repeat performance of last year.

“It was painful,” Phillips said.

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