- April 22, 2024
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The City Commission received a proposed budget and millage rate from city staff for the fiscal year beginning Oct. 1 at a workshop on July 29. The officials voted to adopt the proposals at their meeting held after the workshop.
The first public hearing on the budget and millage rate will be Sept. 15 in commission chambers, and final approval will be at another public hearing on Sept. 29.
The proposed millage rate, 4.1181, is the same rate as year, which was one of the goals the commission set earlier in the year. However, it will bring in more money because of the increased value of homes. It is 4.1% above the rolled back millage rate, which would bring in the same amount of money.
“The operating millage will provide necessary funding for general operations, facilities renewal and replacement, capital improvements, and transportation improvements,” said City Manager Joyce Shanahan in a memo.
The millage required to pay debt on voter-approved items, 0.2879, makes the total millage 4.4060.
Homeowners can expect to see an increase in their bill, because of increased home values. Finance Director Kelly McGuire said that with the proposed millage, a person who owns a $150,000 home, and has exemptions totaling $50,000, will pay $8 more in property tax for the year, or a total of $450. The $450 is based an expected increase in value of the home of 1.5%.
Mayor Ed Kelley pointed out most of the money on a person’s tax bill is for the county and other entities. McGuire showed in her presentation that people actually pay more to the county and the school system than they do to the city. The current millage for Volusia County is 7.2709 and the millage for Volusia County Schools is 7.3580.
The increase in revenue from the property tax will be $463,000. McGuire said “the bulk” of this money will be used to pay for raises for employees. The police and fire unions, and the general employees all won increases in contract negotiations.
McGuire said that on average, city employees will receive a 2% increase in compensation.
McGuire reported good news for the city in regard to the burden of pensions. The city is getting a much better return on investments in the pension fund, and they were able to make changes in contract negotiations that reduced city burden.
However, health insurance costs for employees are expected to rise as much as 18%.
Based on existing taxes, Ormond Beach has the third lowest tax rate in the county. Only New Smyrna Beach and DeBary are lower. However, Kelley pointed out that Ormond Beach has a lower per capita tax rate than New Smyrna Beach.
The budget includes plans to add three employees: a full-time contract manager in Building Maintenance, a part-time maintenance worker and a part-time custodian at The Casements.
The proposed total budget for the city is $61,585,979, which is funded by many sources including fines, charges for services, licenses, permits, franchise fees, etc., as well as property tax. Property taxes provide $8.8 million.
