PALM BAY, Fla. – Palm Bay commissioners voted to lower the proposed millage rate for next year while discussing how a proposed property tax amendment on the November ballot could affect city services and future budgets.
Palm Bay city leaders approved to tentatively lower proposed property tax rate for next year’s budget while also raising concerns about the potential impact of a proposed constitutional amendment that could significantly reduce local government funding.
The Palm Bay City Council voted 4-1 to set the proposed millage rate at 6.6 mills, down from the current 6.7 mills. City officials said the lower rate is expected to generate about the same amount of property tax revenue as last year because of rising property values.
Mayor Rob Medina cast the lone dissenting vote, arguing the city should adopt a higher rate to prepare for unexpected emergencies, including the possibility of severe storms.
“If we set it at the 6.6, we can never, on this, if we have a catastrophe,” Medina said.
Although the council approved the proposed rate, commissioners also discussed the potential effects of a property tax amendment expected to appear on the November ballot. If approved by at least 60% of voters, city officials said the measure could reduce Palm Bay’s property tax revenue by approximately $46 million.
Commissioner Kenny Johnson criticized the proposal, calling it an overreach by the state.
“I truly feel this is an overreach of the state,” Johnson said. “I feel they are doing this in this case, and this is an attempt to make municipalities subservient to the state and dependent on the state.”
Johnson warned that a significant loss in revenue could eventually affect public safety and other city services.
“Reducing police officers and firefighters and other services that are expected at this time, but there could be loss with the approval of the referendum,” he said.
Rather than making contingency plans immediately, the council agreed to wait until after the November election before discussing how it would address a potential budget gap if the amendment passes.
“We will be one of the municipalities that would be heavily affected, and people will still expect the same level of service,” Johnson said.
Palm Bay’s first public hearing on the proposed millage rate is scheduled for Sept. 9 at 6 p.m. at City Hall.