Lake Placid council sets proposed millage at 3.65 amid debate over reserves, CRA and service costs

The Lake Placid Town Council on July 14 voted to set a proposed millage rate of 3.65 mills for the coming budget year, a figure councilors said would preserve flexibility during budget workshops while allowing the town to address rising costs for utilities, roads and public safety.

Town Administrator Charlotte Rodriguez said the recommended rate was “not just about numbers, it's about building public trust,” and emphasized that the proposed figure can be lowered during the statutory budget process but cannot be increased after the council sets a proposed millage.

Why it matters

Town staff and councilors framed the decision around falling behind on revenue when rates stay at the rollback level and the need to maintain core services — police, sanitation, water and wastewater, and parks — as the area grows. The clerk explained the legal Truth in Millage process under Chapter 200 of the Florida statutes and the timeline for public notices and hearings.

What council discussed

Council and staff presented five millage options; staff said 3.65 was a “practical and strategic” target intended to stabilize operations without “overextending.” Staff cited rising inflation, higher construction and road costs, and recent cuts to state grants for utility expansion as reasons to avoid setting the roll-back rate that would hold revenue flat year-to-year. The town administrator and finance staff noted that taxable values in Highlands County are estimated to rise and that growth pressures will add service demands.

Residents and councilors pushed for clarity on how the money would be spent. Jack Connolly, a resident, suggested removing a planned $200,000 allocation for pickleball courts to reduce the proposed increase, saying, “If we were to eliminate the $200,000 that's going to the pickleball courts, we could reduce that, 3.65, mils by about 50%.” Elena Silva, another resident, asked for an itemized list of large expenditures so taxpayers can see what would be funded if the millage is raised: “We should have a list of all the items or the large items that you're looking to spend that money.”

Tax increment financing, reserves and revenue context

Staff and the clerk explained that the town’s Community Redevelopment Area (CRA) captures approximately 95% of incremental tax revenue in the CRA district (tax increment financing), which reduces how much of assessed-value growth flows into the general fund for townwide services. The clerk also said the county-provided preliminary taxable values are estimates and final collections can differ after exemptions or unpaid taxes are accounted for.

Councilors and staff cited the town’s reserve balances during debate. One councilor noted the general fund reserve at roughly $1.3 million and an infrastructure reserve of about $2.4 million and urged consideration of those balances when deciding how much revenue to raise now versus drawing reserves.

Action taken

Council voted to set the proposed millage rate at 3.65 mills. The motion carried with a majority of councilors voting yes and one councilor voting no (see actions below). Staff emphasized that the rate can be reduced during public budget workshops and a second statutory adoption hearing in September.

Next steps

The council scheduled budget workshops and encouraged residents to attend. Staff will prepare more detailed budget materials, including the DR-420 scenarios the clerk runs to compute rollback and proposed levies, and will present program-specific requests and justification at the workshops so the council and public can evaluate tradeoffs.

Ending

Council members and residents framed the vote as a starting point for budget work rather than a final spending decision. The advertised proposed millage will trigger the statutorily required TRIM notices and public hearings this summer; the council can reduce the rate at later hearings after reviewing detailed budget requests but will not be able to raise it above the proposed ceiling.