City of Palatka approves budget with controversial tax increase

During a recent city commission meeting in Palatka, Florida, officials discussed several ordinances aimed at rezoning and annexing parcels of land, as well as adjustments to the municipal code and the upcoming fiscal budget.

The commission reviewed Ordinance 202413, which involves the annexation of a parcel located at Clark Drive, transitioning its land use from Putnam County Urban Service to city residential medium density. The ordinance received unanimous approval from the commission, with no public comments recorded.

Following this, Ordinance 202414 was presented, which amends the official zoning map to include the same parcel under different residential classifications. This ordinance also passed without opposition.

Another significant topic was the amendment of the Palatka Municipal Code through Ordinance 202410, which combines regulations for vacant and blighted structures and adjusts the fee schedule related to various municipal services, including an increase in the alcohol beverage license review fee from $50 to $100. This ordinance also received approval after a brief discussion.

The meeting also included a critical public hearing on the fiscal year 2024-2025 budget and millage rates. The finance director outlined that the proposed operating millage rate is set at 6.4000 mills, which is 4.45% higher than the rollback rate of 6.1271 mills. This increase is attributed to the need for additional revenue to support city operations, including personnel and capital expenses.

Commissioners expressed concerns about the tax implications for residents, particularly in light of previous significant tax increases. One commissioner highlighted the importance of exploring options to reduce the millage rate to alleviate the financial burden on taxpayers. The finance director assured the commission that guidance from the Department of Revenue would be sought to explore potential adjustments.

The total budget for the upcoming fiscal year is projected at $75,985,566, and the commission is expected to finalize the budget and millage rate in the coming sessions. Public comments were invited but none were made during this segment of the meeting.