- April 17, 2024
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The Ormond Beach City Commission passed a resolution 4-1 to raise the property tax rate by 4.7% for fiscal year 2021-2022 at its first budget hearing on Wednesday, Sept. 8. City Commissioner Dwight Selby voted against.
The city's new millage rate off 4.0308 mils includes a public safety vehicle and equipment replacement fund and two voter-approved general obligation bonds. The operating tax rate is 3.9128 mils, which is 4.7% above the rollback rate of 3.7370 mils. The budget for next fiscal year totals $101.7 million, which does not utilize any of the city's reserves for operating expenses, according to city documents.
In an editorial written by Selby to the Ormond Beach Observer, the commissioner detailed why he was voting against the tax rate increase: The city has $8.8 million in serves, accounting for 25% of the operating budget, which far exceeds the city's baseline of keeping reserves at 15%.
"Don’t get me wrong: Being fiscally careful is a good thing," Selby wrote. "But taking money out of your pockets to put it in the city’s savings account is unacceptable. It’s your money, and it should stay in your bank account until the city absolutely needs it."
He proposed a 2.35% increase, but his proposal did not gain support from the rest of the commission.
Mayor Bill Partington said at the Sept. 8 meeting that the 4.7% increase will serve to cover inflation, and that cities — particularly coastal ones — often have more than 15% of reserves available in case of storms or other unforeseeable events. He considers 15% to be minimum threshold for reserves.
“That is like the ‘do not go below’ level," he said. "There’s no reason we shouldn’t have a 25% or 30% reserve to protect our residents. I’m very, very proud that we have what we have and I wouldn’t be bothered if it went a little higher because protecting our residents I think is our biggest responsibility up here.”
Only one resident spoke at the meeting against the city's proposed millage and budget. Joe Hannoush, who serves on the city's Budget Advisory Board, said he agreed with Selby's stance and that the city had the funds necessary to go to rollback.
It's "budget 101" to never use one-time dollars for recurring expenses, said the mayor. The Budget Advisory Board recommended the budget 4-1, he said, adding that "it's not totally made up of novices on that board."
Hannoush was appointed to serve on the board in 2019 by Commissioner Rob Littleton.
“Nobody likes increases, but when you have a fiscal responsibility to protect your city, don’t play political games with the budget," Partington said. "Do what is right for your residents and fund your priorities.”
Selby said in an emailed statement that he stands by his position that the tax increase is not necessary.
"The city has more than enough excess cash reserves (well above the minimum required by policy) to fully fund all planned programs and positions," he said. "I am a public servant (not a politician) and because I serve the public and not the bureaucracy or myself, I do what is in the best interest of the taxpayers even when it’s not popular with staff or the rest of the City Commission."
The final budget hearing is scheduled for 7 p.m. on Wednesday, Sept. 22.
This story was updated at 1:55 p.m. Thursday, Sept. 9, to include Selby's statement.
