ANNA MARIA – City property owners will see their property taxes reduced in the coming year.
On July 25, the Anna Maria City Commission voted 3-2 to adopt a tentative 1.65 millage rate for the coming 2024-25 fiscal year that begins Oct. 1. The adopted tentative millage rate can be further reduced before the budget is finalized in September, but it cannot be increased.
Anna Maria’s current 2.05 millage rate has long been the lowest millage rate on Anna Maria Island and in Manatee County, joined last year by Holmes Beach.
On June 27, Mayor Dan Murphy proposed lowering the millage rate to 1.82 mills, with the possibility of bringing it even lower. When presenting his proposed $10.4 million capital project plan on July 25, Murphy proposed setting the tentative millage rate at 1.75 mills.
“My goal is to reduce the taxes in this city for the first time in history. It’s not a huge cut, but it is a cut. It’s a step in the right direction,” Murphy said, noting the proposed rate would result in Anna Maria property owners paying a lower city tax bill next year.
Murphy said lowering the millage rate to 1.75 mills would leave the city with a $1.21 million contingency fund for the new fiscal year. The contingency fund for the current budget year is $981,851. The non-earmarked contingency fund can be used to cover unexpected expenditures, including hurricane clean up and recovery efforts.
Commission discussion
During the lengthy discussion that followed, commissioners Gary McMullen and Charlie Salem lobbied for a 1.65 tentative millage rate and Commissioner Kathleen Morgan later joined them in adopting that tentative millage rate.
Commissioners Jon Crane and Mark Short expressed support for a 1.75 tentative millage rate but for differing reasons opposed adopting the tentative rate at 1.65 mills. Short noted a 1.75 millage rate would be a 15% reduction.
Commissioner Gary McMullen asked if reducing the proposed contingency fund to its current level would lower the millage rate. Murphy said a 1.65 millage rate would produce a $987,000 contingency fund.
“At 1.65, we’d still have a contingency fund that’s almost a million dollars,” Salem said. “We don’t have this opportunity very often. We should take advantage of it and we’re in a good position due in large part to the mayor’s leadership.”
Crane expressed concerns about a 1.65 millage rate negatively impacting the city’s finances in the years to come.
“I’m happy to bring it down to 1.75, but I’d hate to jump to back where we are now the following year,” he said.
Murphy said the city is now benefiting from the street paving and drainage improvements made during the past decade.
“We’ve invested in our infrastructure. Now we can reap that benefit, and it’s not just a one-year benefit,” Murphy said, noting the 1.75 millage rate could be maintained if the city continues to invest wisely in infrastructure maintenance and improvements.
After noting that high taxes and insurance premiums contribute to the loss of permanent residents, Murphy said, “We only play a small part of that tax bill, but I think we need to set an example for the school board, for the county, for all the other agencies.”
Murphy said he asked Sen. Jim Boyd to relay that message to Manatee County’s other taxing authorities.
“Nobody else is doing this. It has to start somewhere and I would like it to start here tonight,” he added.
Public input
During public input, Anna Maria businessman and mayoral candidate Brian Seymour encouraged the commission to set the final millage rate at 1.65 or 1.6, even if they set the tentative rate at 1.75.
“I want to applaud the mayor and commissioners. I think it’s long overdue, as our property values have doubled, if not tripled, in the 15 years I’ve lived here. We can be the example for other cities,” Seymour said.
Participating by phone, Barry White said he’s owned a residential property on Spring Avenue property since 2017 and his taxes and insurance premiums have increased astronomically since then.
“Things have gotten out of hand,” White said, noting his total tax bill last year was $33,000, which was reduced from $50,000 because he protested the initial assessment.
Regarding the increased value of his home, White said, “The equity doesn’t help me if I’m not going to sell. I don’t want to sell and I don’t want to rent my property.”
White, 65, retired in 2017.
“I pay $20,000 in school taxes and I get zero return for that. My kids are grown. That’s $20,000 of $33,000 right there,” White said. “Thank you so much for what you’re considering tonight.”
The commissioners then voted 3-2 to adopt the 1.65 tentative millage rate.
Immediately after the meeting, Short said, “I was all for the proposed reduction to 1.75. I am for reducing the property tax millage rate as much as we can. Since today’s number was not final, and we have the ability to bring it even lower when we have the final numbers, I felt it was safe going in at 1.75. I’m perfectly fine with 1.65 and we’ll see where we are once the numbers are finalized.”
The next budget discussion is scheduled for Thursday, Aug. 8 at 1 p.m.
Related coverage:
Anna Maria budget preparations continue
Mayor proposes reduced millage rate
