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Lakeland commissioners appear poised to maintain the city’s 5.4323 millage rate, despite uncertainty created by Amendment 3, a Florida ballot measure that could reduce the city’s property-tax revenue by an estimated $14.5 million annually.
In special budget hearings set for Sept. 10 and Sept. 24, commissioners will formally consider the millage rate as the city weighs how the statewide amendment could affect future revenue.
During multiple budget workshops over the past six weeks, all seven members of the City Commission, including Mayor Sara Roberts McCarley, have signaled support for maintaining the current 5.4323 millage rate.
“If we can provide all our services and meet our budget needs, even with Amendment 3 hanging out there, I lean toward maintaining the current rate,” Commissioner Terry Coney told LkldNow. He said the rate reflects a city value of being “frugal and efficient.”
What is millage?
Millage is the rate a local government applies to a property’s taxable value to calculate its share of the property-tax bill. One mill equals $1 in tax for every $1,000 of taxable value.
At Lakeland’s current rate of 5.4323 mills, a property valued at $100,000 would generate about $543.23 in city property taxes, before taxes levied by other governments and taxing districts.
In a July 23 budget workshop, Finance Director Mike Bossart said that property values in the city are forecast to rise by 4.96% in the next fiscal year, which would generate an additional $3.079 million at the current millage rate.
Commissioner Mike Musick pointed to a list Bossart presented comparing Lakeland’s millage rate with those of similarly sized cities. Lakeland’s rate was lower than almost all of them.
Musick called Lakeland “unique” for keeping its rate relatively low while supporting amenities such as a civic center, golf course, and baseball team. “It’s very easy to justify, in my opinion, the millage rate that we’re at,” he said. “Being able to keep it the same is encouraging.”
State tax proposal clouds Lakeland’s budget outlook
However, a ballot measure Florida voters will consider on Nov. 3 could have a significant impact on Lakeland’s future property-tax revenue.
Amendment 3, recently renamed “Increased Homestead Exemption; Lower Cap on Increases in Non-Homesteaded Property Assessments,” would need approval from at least 60% of voters to take effect.
If it passes, the homestead exemption for non-school taxes would rise from $50,000 to $150,000 on Jan. 1, 2027, and to $250,000 a year later. The cap on annual assessment increases for non-homesteaded properties would drop from 10% to 5%.
For Lakeland, the measure is estimated to reduce property-tax revenue by $14.5 million annually. Department heads have been asked to prepare alternate budgets showing potential cuts of about 10%, which the City Commission plans to review in October.
Bossart and City Manager Shawn Sherrouse recommended keeping the current millage rate despite the uncertainty. Because the proposed rate is above the rolled-back rate, five of the seven commissioners would need to approve it at the final Sept. 24 hearing.
“Thumbs up for now,” McCarley said, adding that she saw “seven thumbs” around the table.
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I wonder why the Florida Sheriff’s Association, Florida Firefighters Association, and the Florida Fraternal Order of Police are all against Amendment 3. I also wonder why the Florida Realtors are putting in $10 million in support of Amendment 3. Finally, I wonder why the Lakeland City Commission hasn’t mentioned anything about the law enforcement officers and firefighters being against Amendment 3.