BY DAN HILDEBRAN
Keystone Heights Councilman Dan Lewandowski convinced his colleagues to approve the municipality’s rolled-back millage rate after pointing out that the city has $3.15 million in cash.
The city council held its first budget hearing on September 3. It advertised a tentative millage of 4.2901, a 10.43% increase over the rolled-back rate of 3.9512.
The rolled-back rate is a calculation that brings the same tax dollars next year as for this year, excluding new construction, additions, deletions, annexations, and improvements to taxable properties. The Florida Department of Revenue defines any rate above the rolled-back rate as a tax increase.
City Manager Charlie Van Zant told the council that the proposed rate of 4.2901 would bring in an additional $39,525 in revenue to the city over the rolled-back rate and that there are 685 taxable parcels within the city.
“If you divide 685 into that— everybody’s property bill is different— the average (increase over the rolled-back rate) on those 685 Parcels is $57 and change,” he said.
Mayor Nina Rodenroth, Vice Mayor Christine Thompson, and City Attorney Rich Komando said the city has been assessing the 4.2901 rate for up to a decade.
Komando added that while the proposed rate is an increase over the rolled-back rate, the prices of goods and services the municipality buys have also risen.
“For example, like we just did the demolition of the old China Chef,” he said. “The demolition on that a couple of years ago would have been $10,000. Now we’re looking at $30,000. So, your cost of goods and services goes up too.”
The city attorney added that some of the city’s cash is encumbered because it belongs to the Community Redevelopment Agency, is part of an enterprise fund, or is committed to a specific project.
Lewandowski argued that the city’s proposed budget with the rolled-back rate forecasts a surplus of $140,000.
“So, if we go with the rolled-back, we still are in really good shape,” he said. “I just don’t see why we’re asking for more money when we don’t need it. There is no projection for this need, none. There’s no project we have, no strategic plan, there is no reason to ask for this extra $40,000. We’ve got all pay raises covered. We’ve got all the projects we have planned covered, and we have plenty of money in the bank. To me, it sounds like we’re greedy.”
Councilman Tony Brown said he favored the proposed 4.2901 rate. He said that during his tenure on the council, there had been times when the city was in “panic mode” over a shortage of cash, and he wanted to ensure the municipality avoided future crises.
“Yes, we are healthy,” he said. “But you never know when you’re not going to be healthy, and I’m for keeping it the way it is.”
Lewandowski countered that the city has over $3 million in the bank to cover any unforeseen events.
“Just our checking account is $2.4 million,” he said. “Our CD accounts are another $740,000. We have $3.15 million in cash assets. How much do we have to have before we’ll reduce the rate? Five million?”
With that, the retired Air Force colonel moved that the council approve a tentative rate of 3.9512. His motion passed 3-2, with Speedy Kussler and Thompson joining Lewandowski and Rondenroth and Brown voting against.
The five-member panel approved the 3.9512 millage rate for the second time during the council’s September 16 final budget hearing.
