During a recent city council meeting, officials discussed the establishment of the maximum operating millage rate for the fiscal year 2024-2025, as outlined in resolution 2020-414. The proposed maximum millage rate is set at 6.6 mils, representing a 16.52% increase over the rollback rate of 5.6642 mils. This resolution is crucial as it sets a cap that cannot be increased without incurring additional administrative and financial burdens for the city.

The council also scheduled public hearings to discuss the millage rates and budget, with the first hearing slated for Tuesday, September 3, at 6:00 p.m., and the final hearing on Tuesday, September 17, at the same time. These dates align with previous discussions held during budget workshops on June 10 and July 8.

A key point of discussion raised by council members involved the implications of the millage increase on homesteaded properties. It was noted that property taxes on such homes can only increase by a maximum of 3% annually. This raises questions about who would ultimately bear the burden of the proposed 16% increase, particularly concerning the real estate market and vacation rental homeowners.

City officials clarified that while the assessed value may rise, the actual charge to homeowners would be limited to the 3% cap, with any excess amount being credited for future tax calculations. This nuanced approach aims to balance the city's financial needs with the potential impact on residents and property owners.