The City of Palm Bay, Florida, has tentatively adopted an operating millage rate of 6.7339 for the fiscal year 2024-2025, which exceeds the current year's rollback rate of 6.5627 by 2.61%. This increase is attributed to new construction being excluded from the 3% cap on property tax increases, alongside rising health insurance costs and significant pension obligations for police and fire services, which total $9.6 million—an increase of nearly 30% from the previous year.

The proposed budget also includes $1.7 million for high-priority funding needs, $3.25 million for road maintenance, and $4 million for personnel adjustments, which will add 35 full-time positions in the fire and police departments and 7 in internal services to accommodate the city's growth. Additionally, a debt millage rate of 1.1210 has been set, expected to generate approximately $10 million in revenue, earmarked for servicing general obligation bonds.

During a public hearing, residents expressed concerns over the tax increase, particularly retirees on fixed incomes. One resident, Eva, highlighted her shock at her tax bill rising from $4,000 to an estimated $4,300, emphasizing the financial strain it places on her and others in similar situations. Another resident, Daniel, echoed these sentiments, stating that the increased tax burden could force him to sell his home after years of hard work to secure it.

City officials clarified that the increase in taxes is largely due to rising property valuations rather than solely the millage rate. They noted that while the proposed rate is higher than the rollback rate, it is a reduction from last year's rate of 7.5995, indicating a trend of decreasing millage rates over the years.

The council is set to make a final decision on the proposed tax increase later this evening, with residents encouraged to participate in the discussion.