In a recent government meeting, city officials discussed the proposed increase in the real estate tax rate for the upcoming fiscal year, which begins July 1, 2024, and ends June 30, 2025. The proposed rate is set at 7.75 cents per $100 of assessed value, a move that is projected to generate approximately $560,000 in additional revenue for the city.

During the meeting, city staff presented a report reiterating the importance of property tax as a significant revenue source for the general fund, which supports various city services. The discussion highlighted the necessity of the tax increase in light of rising costs associated with city services and infrastructure projects, including a new beach patrol facility that has encountered cost overruns.

Several commissioners expressed their views on the tax increase, with some supporting it as a necessary measure to maintain city services, while others raised concerns about the city's financial management and the potential for surplus funds to offset the need for a tax hike. Commissioner Don Preston emphasized the need for better financial forecasting and transparency regarding the city's budget.

Public comments reflected a mix of opinions. Some residents supported the tax increase, citing the need for adequate funding for city services, while others opposed it, suggesting alternative revenue sources should be explored before raising property taxes. One resident pointed out that the proposed tax hike closely mirrors a recent significant expenditure by the city, raising questions about fiscal responsibility.

Ultimately, the motion to adopt the tax increase passed with a vote of 5 to 2, with several commissioners acknowledging the need for improved financial planning in future budget discussions. The city plans to revisit its budget in September or October to assess revenue trends and make necessary adjustments.