ANNA MARIA – Mayor Dan Murphy proposes lowering Anna Maria’s current 2.05 millage rate to the 1.8245 rollback rate, or lower.
The rollback rate is the rate needed to generate the same ad valorem property tax revenues generated during the current fiscal year, with increased property values producing the same revenues at a lower millage rate.
When presenting his final city budget before leaving office later this year, Murphy proposed the millage reduction during the Anna Maria City Commission’s June 27 budget meeting. Focused on projected revenues, Thursday’s meeting was the first of three preliminary budget meetings scheduled for the preparation of the 2024-25 fiscal year budget that takes effect on Oct. 1.
Regarding the millage rate, Murphy said, “We’re not going to go in at 2.05. We’re actually going to start at the rollback rate which will yield $4.24 million (in ad valorem property tax revenues). I think we can actually bring it in under the rollback rate and provide all the services we need to provide for the residents of this city, so the property owners and the homeowners of our city could experience a tax reduction. I hope that you could share that goal with me as we go forward with the budget.”
The commission expressed preliminary support for the proposed millage reduction.
Murphy said a budget based on a lower millage rate would be “lean and mean” while still providing the services and benefits residents and property owners expect.
“It’s not like we’re going to live in austerity,” he said. “We maintain or improve our quality of life, yet we do it with less money because we do things more efficiently and we utilize what we’ve got in terms of the carryover from projects we couldn’t finish.”
At 1.8245 mills, Anna Maria property owners would pay a city property tax of approximately $1.82 per every $1,000 of assessed property value after homestead exemptions and other tax exemptions are applied.
According to the Manatee County Tax Collector’s 2024 Preliminary Taxing Authority Report, the taxable value of Anna Maria’s 1,707 real properties is $2.32 billion.
Anna Maria’s current 2.05 millage rate has historically been the lowest on Anna Maria Island and the lowest in Manatee County.
In 2022, the Holmes Beach City Commission lowered its 2.15 millage rate to 2.07 and in 2023 they lowered it again to 2.05 for the current fiscal year. The Bradenton Beach millage rate has remained at 2.3329 for several years.
Anna Maria property owners also pay Manatee County property taxes and the county’s 2023 millage rate was 6.2326. Manatee County property owners also pay taxes and assessments levied by the Manatee County School Board, fire and rescue districts, stormwater management districts, mosquito control districts and the West Coast Inland Navigation District.
City revenues
Murphy said the city received slightly more than $10.1 million in total revenues for the current 2023-24 fiscal year that ends on Sept. 30 and he projects the city receiving $18.1 million in total revenues during the 2024-25 fiscal year that begins on Oct. 1.
The $8 million increase includes $6 million in unspent project-related funds to be carried over into the new fiscal year. Murphy said $12.8 million is already earmarked for specific projects and expenditures and the remaining $5.3 million is not yet earmarked for specific expenditures.
Murphy said $1.28 million of the projected $3 million in stormwater revenues is carryover from the current fiscal year. He said some stormwater and drainage projects couldn’t be completed this year because the contractor didn’t have the needed labor resources.
Stormwater revenues are received from the Southwest Florida Water Management District, FEMA and the stormwater assessment fees the city levies annually on Anna Maria property owners.
Regarding the stormwater and drainage projects to be included in the new budget, Murphy said, “When this is completed, the whole city is covered with vertical infiltration and stormwater treatment.”
The projected revenues include a previously approved $2.6 million state appropriation for the Reimagining Pine Avenue safety improvement project and an additional $185,094 in remaining American Rescue Plan funds that will be used to install new Pine Avenue streetlights.
Murphy noted that Gov. Ron DeSantis recently vetoed the city’s $475,000 state appropriation request for the construction of a stand-alone public comfort station (public restrooms) near the public parking lot by city hall and the Island Players.
Murphy said Bradenton Area Convention and Visitors Bureau Executive Director Elliott Falcione supports the city seeking $288,000 in tourist development tax revenues to help fund the comfort station project.
“I feel optimistic that we can convince the county commission to give us that money,” Murphy said. “It’s an excellent investment in the city – a comfort station near the beach, with a diaper changing station and an outdoor shower. It’s a good use of tourist development money.”
Senior discount
Commissioner Mark Short mentioned the tax exemptions given to Manatee County property owners. According to the tax collector’s office, permanent residents qualify for a $25,000 homestead exemption and those whose assessed property value exceeds $50,000 are eligible for an additional $25,000 exemption. Senior citizens who are at least 65 years old and meet the income threshold are eligible for an additional $25,000 exemption.
“We have the ability, through ordinance, to change that to $50,000,” Short said in regard to increasing the city’s senior citizen tax exemption to the full $50,000 allowed by the state.
“As we move forward, I would like to take that into account,” Short said. “It doesn’t affect a lot of people who live in the city, but it does affect some.”
Budget meetings
The mayor and commission will discuss operating expenses on Thursday, July 18. Capital project and improvement expenses will be discussed on Thursday, July 25 and the tentative millage rate will also be set during that meeting. Both July budget meetings will start at 5 p.m. The commission will set the final millage rate on Thursday, Sept. 12 and adopt the final millage rate and 2024-25 budget on Thursday, Sept. 26.
