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Expert outlines municipal revenue options and urges utility planning ahead of possible state tax changes
Summary
Ken Small, a municipal government expert, reviewed Lake Placid's revenue tools — property tax millage, municipal utility/public service tax, communication services tax, local business tax, user fees, special assessments and transfers — and flagged potential state constitutional amendments that could limit property tax options, urging the town to plan utility rates and transfers prudently.
At Lake Placid's strategic planning kickoff, municipal finance expert Ken Small reviewed the revenue options small Florida cities have to fund services and infrastructure and cautioned town leaders to plan for possible state changes to property tax rules.
Small summarized municipal revenue sources: "The Florida Constitution grants local government... the right to levy the property tax," and cities may levy up to 10 mills, with some options to exceed that by voter referendum. He described the municipal public service tax (sometimes called the municipal utility tax), the communication services tax (CST) and the local business tax as statutory tools cities may use to raise revenue. Small also discussed franchise fees, user fees and special assessments as ways to fund services such as stormwater programs.
On utility finance, Small urged careful rate design and transfers: many cities transfer a modest share of utility revenues back to the general fund to cover central costs, but those transfers should be conservative so utility customers are not overburdened. He advised the town to consider a strategic utility master plan; the meeting host noted the town council will be asked to initiate such a plan at an upcoming meeting.
Audience members sought clarifications about garbage collection and billing. A resident corrected an earlier remark by noting the town does charge residents for garbage collection on the property tax bill, and attendees discussed recent fee adjustments and how rates are calculated. Small later clarified that the revenues he described are those the town can levy or control, while state‑shared revenues are formula driven. He also referenced 'Save Our Homes' and Chapter 200 rules affecting millage increases.
There were no formal votes in this session; the presentation and follow‑up questions were informational and intended to help the town evaluate revenue and utility planning choices.
