Letter: 2022 Millage Cut

Some of you may have noticed that the recently mailed T.R.I.M. notices from the Assessor's office contained an unpleasant surprise. Due to surging inflation, the assessed value of every Manatee County homestead property went up 3% - equal to a property tax increase of about $105.00 or .34 mills. Had you not been "protected“ by the "Save our Homes“ assessment cap, the assessed value of your house would have gone up even more. With a YTD surplus through June of $206.6 million and approximately $1.34 billion sitting in cash on the county's balance sheet, why is any kind of property tax increase necessary?

The short answer is that it is not needed, and the Commissioners should take action to offset the .34 millage increase caused by "Save our Homes“ with a commensurate drop in the millage rate. Already the Commissioners have voted in a .2 millage decrease to offset the .15 increase occasioned by the environmental lands approved by the voters last year. That was a good move by the Commissioners.

Now, they should follow up with a similar action to offset the Homestead 3% increase in property values. As I understand it, there are three options on the table at the upcoming budget meeting this Wednesday – a .1, .2, or .3 millage cut. Last year, the Commissioners opted for a .2 decrease, and this year I am recommending they vote for a .3 cut which when combined with the already approved .2 cut will fully offset the .15 millage increase from environmental lands and the .34 millage increase from Homestead.

On the also important question of the county's huge cash reserve of $1.34 billion, Florida statute allows 30% of the budgeted appropriation to be held as a reserve. Using $900 million as a spending estimate, maximum legal reserves are $270 million. So, the county is way over statute and has yet to have a serious discussion about what to do with all of these excess funds.

Many states and municipalities have simply returned excess federal grants they received as a result of Covid to the taxpayer, and this is a legitimate option for the Commissioners to consider. Setting aside committed funds of $42.6 million, assigned funds of $91.4 million and unassigned funds of $134.0 million puts you at the Florida cap of $270 million. Subtracting $270 million from current unrestricted funds of $690.6 million leaves $420.6 million which should either be spent or returned to the citizens who paid it in. Plan to attend this Wednesday's budget session at 6 P.M, and let your voice be heard.

Mike Meehan, CFA, MBA