After several hours of difficult discussion, the City Commission gave an unofficial 6-to-1 thumbs up Thursday to a proposed property tax rate increase. It would be the first such increase since 2016.
Commissioners are considering setting a millage rate of 6.0529 per $1,000 of appraised property value — although they could still choose something lower. Currently, the rate is 5.4323 mills.
Property tax revenue pays for city services like the police and fire departments, water and stormwater drainage, infrastructure and Lakeland Electric. The power company’s revenue, in turn, pays for much of Lakeland’s parks and recreation, along with funding for arts programs.
How it affects you: City Finance Director Mike Brossart said the average taxable value of a home in Lakeland is about $152,000. The city’s current tax on that value is $825.71. If the millage rate were raised to 6.0529, the city’s tax would be $920.04 — a roughly $95 increase.
If those figures seem low, there are two likely reasons:
- “Taxable value” is typically less than what a real estate website might say a home is worth. Assessed values can only rise by 3% a year unless the property changes hands, thanks to the Save Our Homes amendment approved by Florida voters in 1992. And full-time residents can claim a $50,000 homestead exemption.
- Lakeland’s tax is only one of many that are factored into the overall property tax bill that homeowners receive each year.
For a home purchased within the past five years, taxes might look like the graphic below:
The case for raising the rate: Commissioners listened to a presentation from Brossart, who gave several reasons why the increase is necessary:
- The city’s recurring expenses have grown by about $9.8 million in recent years, mostly for public safety. New costs include body-worn cameras for police, 25 additional police officers, 36 additional firefighters and over $1 million in transportation road maintenance.
- Rising property values enabled the city to cover those costs without raising property taxes, but the housing market has cooled.
- The Lakeland Police Department needs to add five officers this year and seven officers next year.
- To maintain the city’s high bond rating by keeping enough cash on hand to last the city 45 to 60 days in an emergency, like a hurricane.
- To pay for the substantial increase in property and health insurance rates.
- And to maintain the quality of life residents currently enjoy.
The proposed increase would generate about $6 million more in revenue for fiscal year 2025.
Lone holdout: All but City Commissioner Chad McLeod tacitly approved the increase at the end of a six-hour budget workshop on Thursday.
“Just the environment of inflation, home insurance cost premiums skyrocketing, the cost for families with children to put food on the table, I would say $95 for many families that that can go somewhere (else), every dollar is stretched,” McLeod said.
Other options: Brossart said the commission has several voting options that require only a simple majority of four of the seven commissioners:
- Leave the rate the same at 5.4323 mills.
- Increase it to 5.5026 mills.
- Or roll it back to 5.2064.
Increasing it to 6.0529 will require the approval of a super majority of five commissioners when they vote in September. If they want something higher than 6.0529, it would require a unanimous decision. No one discussed anything higher than that.
Commissioner Mike Musick asked what would happen if they adopted a lower millage increase.
“I’m your financial advisor, and I will tell you, this is kicking the can down the road,” Brossart said, adding that a city commission in the next two years will absolutely have to raise the millage rate.
How Lakeland compares: Out of 17 taxing municipalities in Polk County, Lakeland is one of the lowest at 15th. The highest is an area known as Highland Park, south of Lake Wales, at 9.9759 mills.
- Highland Park — 9.9759
- Lake Hamilton — 8.4276
- Fort Meade — 8.0000
- Dundee — 7.9000
- Eagle Lake — 7.6516
- Haines City — 7.5895
- Davenport — 7.2500
- Lake Wales — 7.1214
- Lake Alfred — 6.8500
- Winter Haven — 6.5900
- Frostproof — 6.5530
- Mulberry — 6.4400
- Bartow — 6.1080
- Polk City — 5.5000
- Lakeland — 5.4323
- Auburndale — 4.2515
- Hillcrest Heights — 0.7543
Lakeland has been able to keep its millage rate comparatively low because Lakeland Electric’s revenue helps the city offset some costs.
Two decreases in nine years: Lakeland’s millage rate has been steady at 5.423 for the last three fiscal years and was actually reduced to that in fiscal year 2022, from 5.4644. That’s when property values shot up and city leaders wanted to try to give homeowners a break while maintaining the city’s coffers. In fiscal years 2016-2018, it was 5.5644. Ten years ago, it was 4.6644.
- FY 2024 — 5.4323
- FY 2023 — 5.4323
- FY 2022 — 5.4323
- FY 2021 — 5.4644
- FY 2020 — 5.4644
- FY 2019 — 5.4644
- FY 2018 — 5.5644
- FY 2017 — 5.5644
- FY 2016 — 5.5644
- FY 2015 — 4.6644
- FY 2014 — 4.6644
City budget: Currently, the city takes in $153.8 million in revenue and has $165.5 million in expenses. It makes up the shortfall with a predictable surplus each year from things like salary savings when positions are vacant.
There are 30 budget divisions within the City and 27 of them came in at or below their budget target. Parks and Recreation went $12,505 over its target for repair of equipment; Risk Management was $4,093 over budget in order to pay for firefighter physicals; and the Lakeland Fire Department was $24,795 over target for repair of equipment.
Action taken: The commissioners voted 6-1, with McLeod dissenting, to advertise a property tax rate “not to exceed 6.0529 mills per every $1,000 of appraised property value.” The action is a legal requirement known as a “Truth In Millage” or TRIM notice.
The millage rate has not been officially set or adopted. After the notice, commissioners can still choose to go with a lower rate, but they cannot set it higher.
What’s next: Commissioners will have another workshop on Aug. 12 at 1 p.m. to discuss a range of possible millage rates and other items that could potentially be cut from the budget to save money.
A formal vote on millage will take place during budget hearings on Sept. 5 and Sept. 19, allowing the city enough time to put the adopted rate in the tax notice sent to property owners.
What the commissioners said
All of the commissioners are self-described fiscal conservatives who struggled with the idea of raising property taxes. But many said they also feel a duty to ensure that the city’s finances and services are sound for future generations. Only McLeod was solidly against raising the rate.
Chad McLeod: “From my perspective, that’s too big of a jump to go from 5.4 to 6.05 unless we had no other options. And I think I’ve said this before when we’ve talked about millage discussions, I, to me, I see it as the last lever you pull in terms of revenue, and I don’t think we’re there yet.”
Sara Roberts McCarley: “Even though we are at that lower millage, the city of Lakeland has more larger employers and more industry, really, housed here that pays into our tax bill, which helps us lower (taxes).”
Mayor Bill Mutz: “I don’t want to minimize ($95), but it’s also over 365, days in a year. You know, as you think about the cost, the flip side of this is how many people would want to have services reduced, and what services would like to have reduced? … To go back to the $95 a day for the average home, that’s 26 cents a day.”
Mike Musick: “I agree it’s the absolute last step that we have to pull — and we do want to have enough (cash on hand) to make sure that we’re we’re protected. But I also, you know, wanted to see” in the numbers what the max rate would produce in revenue.
Guy LaLonde: “It hurts, it hurts to do this, but sometimes we need, we’re just gonna have to do it. Everyone’s experiencing inflation, including city and city operations. If we’re going to provide world class services, then we are going to be able to pay for.”
Stephanie Madden: Both the Police Athletic League and proponents of a senior center have asked the commission for funding, Both have been asked to bring back more information as they vie for $1 million. “Do we want to spend more than what we’ve seen today? Is there anything on anyone’s mind that they had wanted to bring before the commission to read?”
Bill Read: “As I’ve been a conservative a long time, still trust I am. I can endorse the (6.0529) for change. I think it’s imperative that we’re going to need it … number one, we’re going to need fire employees this year. We’re going to need them next year. We’re going to need policemen as well, and a fire station, all the other things that cause more impact fees.”
latest news
Something went wrong. Please refresh the page and/or try again.