City Ditches Maximum Millage Rate Idea

New Port Richey City Council members decided Tuesday to take the idea of raising the city’s millage to its maximum allowed rate of 10 mills off the table.

The council decided to set the tentative millage rate for fiscal year 2013 at 9.57 mills early into a four-hour long public meeting focused on budget issues.  The week earlier, city leaders decided to nearly double the city stormwater fee and raise the streetlight fee.

The city council sets the final millage rate in September, but it cannot be higher than the tentative millage rate. It can only be lower.

Setting the final millage at its maximum rate would have required approval by a super-majority of the city council. That means four out of five council members have to vote in favor of it.

“I don’t think you could get four out of five to vote for it,” said Councilman Bill Phillips.

In accounting, one mill equals $1 for every $1,000 of taxable property value.

The millage rate for the current fiscal year is 8.3877 mills.

The city's proposed budget for fiscal year 2013 is balanced using a proposed millage rate of 9.43 mills.

The new rate, an 11 percent increase over the current year, would generate a total o.

However, raising the millage to the maximum rate allowed by state statute, which would be 10 mills, would generate about $267,000 more in revenue than would be generated with the proposed rate.

City staff is proposing a lean $16.5 million general fund budget for fiscal year 2013. Officials are proposing laying off city employees and freezing positions as part of the proposed non-spending plan.  

City finance director Doug Haag suggested weeks ago that the council consider setting the tentative rate at 10 mills to give flexibility as the council hash out the budget. 

Deputy Mayor Rob Marlowe made a motion to set the tentative rate at 10 mills and was seconded by Councilman Bob Bob Langford.

Then Phillips weighed in, saying he did not think setting the tentative rate as 10 mills would be a positive approach and he couldn't vote for it.

"It takes pressure off of us to do our job," he said, which is to analyze the budget and take into account the new fees.  

A millage of 9.5799 is the highest rate that can be approved by a simple majority of the city council, which would be three out of five members.

“I’m OK at 9.5 as the high end because it goes by simple majority,” Phillips said.

Marlowe made a new motion to set the millage at the 9.5 rate, it was seconded by Bob Langford and then approved by the council.  

That was the only formal council decision made, but it was n't the only thing they did. The meeting lasted another three-plus hours as they went through department budgets and heard from folks concerned about cuts to the New Port Richey Public Library, Recreation and Aquatic Center and yard debris and mulching program. It was a long night.