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The Lakeland City Commission on Thursday approved a $731 million city budget for fiscal year 2025 – down from the current year’s $746.0 million – with no increase in the property tax rate.
Property taxes: The property tax rate commissioners agreed to was the same as the current year’s: 5.4323 mills – $5.432 per every $1,000 of a home’s value after deductions like homestead exemption.
At that tax rate, the owner of a single-family home with an assessed taxable value of $181,383 — the average in Lakeland, according to the Polk County property appraiser — will pay $713.71 in city taxes next fiscal year, which begins Oct. 1.
Two votes: The vote on the tax rate was 6-1, with Bill “Tiger” Read dissenting. Read said he had wanted to vote to increase the millage rate two weeks ago during the commission’s first budget hearing, but was on a long-planned family trip.
Thursday’s vote on the budget was 5-2, with Read and Stephanie Madden dissenting.
Madden explained that the city is spending more than it is taking in each year and that can’t continue.
“I was in favor of keeping the same millage rate, but thought we also needed to cut expenses,” Madden said in a text. “We cannot keep adding to the budget and spend our reserves to pay for it. Our property tax revenue does not cover our services and I believe we all want to keep a low millage rate, but no one is willing to make the necessary cuts to live within our means.”
Tax increase previously voted down: Earlier this month, City Finance Director Mike Brossart had recommended an increase to either 5.5644 or 5.62 mills. For the average household, it would have meant additional property taxes of $20 to $28 respectively per year.
Brossart recommended the increase in order to ensure the city had at least 45 to 60 days cash on hand to operate the city in an emergency. The healthy cash-on-hand amount also ensures that the city maintains its excellent credit rating, which allows it to borrow money at lower interest rates.
The recommendation to increase the tax rate was voted down 4-2 at the commission’s first budget hearing on Sept. 5.
Cash reserves: Part of the formula that determines how much the city will have in emergency funds is trying to forecast by how much property values will increase. In the last year, it was more than 12%. Property Appraiser Marsha Faux put a conservative estimate on that figure for the coming year: 5.48%.
At the Sept. 5 hearing, Commissioner Sarah Roberts McCarley said that, in her time on the commission, she has never seen the cash-on-hand account drop below the targeted 45 days.
But Brossart’s calculation shows that at a 5.4323 millage rate, with a property value increase of 5.48%, the cash-on-hand will dip to 41 days in fiscal year 2027. The city forecasts its budget in three-year increments.
Target areas
City Manager Shawn Sherrouse said the city plans to send $37.6 million in four key target areas:
Infrastructure — $26.6 million. This includes several street repaving projects, the Florida Avenue Road Diet, new sidewalks and trails, the Block Energy Project, Carillon Lakes Lift Station Rehabilitation, several water and/or sewer upgrades in Wedgewood, Florida Polytechnic University, and Southwest Lakeland; and an upgrade of the downtown master plan.
Economic Development — $8.9 million. This includes Community Redevelopment Agency projects on Oak Street, Peachtree Flats, Downtown West, East Main Street and U.S. 92/Memorial Boulevard neighborhoods; multiple housing rehabilitation, emergency repairs, purchases, special needs and new construction projects; and beautification projects.
Public Safety — $1.7 million. This includes new police officers and firefighters, radio tower painting and rust mitigation and a new forklift.
Culture — $322,747. This includes the RP Funding Center’s 50th anniversary celebration, CRA Art Infusion Incentives, the second phase of the resurvey of an historic district, after-school and dance/cultural art programs,the employee engagement survey, and the Mayor’s Council on the Arts.
Other budget impacts: The city eliminated 11 vacant positions from the general and enterprise funds, saving nearly $800,000. But it also added 10 positions that will be paid from the general fund and 11 positions to be paid from the enterprise fund. Most of those were for work at the airport, which is growing because of the Avelo Airlines contract.
Brossart explained that there is a growing service demand because of an increased population. In 2020, the city had 107,552 residents. This year, 122,000 people live within the city limits and forecasters say another 1,700 will move here in the next year.
However, there are fewer employees than there were in 2020. That year, the city employed 2,743 full and part-time people. This year, the city had 2,695 employees and next year, there will be 2,706, including five new police officers. The budget also includes 2.5% salary increases for all employees and up to a 3% raise for some.
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