Palm Bay's New Tax Proposal: What Homeowners Need to Know
City Council Pushes for 2 Mill Increase for Police and Fire Services Despite Previous Voter Rejections
PALM BAY, FL — The City of Palm Bay is once again proposing a referendum aimed at addressing public safety funding needs by introducing a dedicated property tax for police, fire, and emergency medical services. This move comes despite a clear historical mandate from voters to limit tax increases.
Background on the 3% Cap
In the 2016 election, Palm Bay voters decisively approved a 3% cap on ad valorem tax revenue increases, with 70.97% voting in favor (33,427 votes) and 29.03% against (13,676 votes). This cap, enshrined in Section 6.01(b) of the City Charter, restricts the City Council from increasing budgeted ad valorem revenues by more than 3% over the previous fiscal year.
2022 Referendum Failure
In 2022, the City Council attempted to remove this cap through a referendum, arguing that the restriction hindered the city's ability to adequately fund essential services. However, the proposal was soundly rejected by voters, with only 35.07% (13,414 votes) in favor and 64.93% (24,831 votes) against.
New Proposal for 2024
Despite the previous rejection, the City Council is now proposing a new referendum for November 2024. This referendum seeks to establish a dedicated public safety millage rate of up to two mills (2.0000), which would be exempt from the 3% cap. The additional revenue generated would be allocated specifically for police, fire, and emergency medical services, including capital, operating, and personnel expenses.
Proposed Ballot Language:
Shall the City Charter be amended to authorize the City to annually levy an ad valorem tax at a millage rate not to exceed two mills for funding police, fire, and emergency medical services (including capital, operating, and personnel expenses) which shall not be subject to Section 6.01(b) of the Charter (prohibiting charging an ad valorem tax that increases budgeted ad valorem revenues by more than 3% over prior year)?Details of the Proposal:
Purpose: The proposed millage rate aims to address critical public safety needs that have arisen due to the city's rapid population growth. The city has experienced a 16% increase in population from 2020 to 2024, necessitating enhanced public safety infrastructure and services.
Specific Needs: The additional funds would be used to:
Construct and staff new fire stations (Stations 7, 8, and 9) and replace older ones (Stations 2 and 5).
Increase the number of police officers to meet state averages, as Palm Bay currently ranks 239th out of 248 police departments in Florida, with only 1.36 officers per 1,000 residents compared to the state average of 2.31.
Acquire new and replacement vehicles and equipment for the police and fire departments.
Financial Impact: A 2 mill increase would result in an approximate $400 per year increase for a $200,000 home.
Rationale and Implications:
The City Council argues that the dedicated millage is necessary to address these urgent public safety needs. They contend that the current 3% cap severely limits the city's ability to fund essential services adequately. By establishing a separate millage rate dedicated to public safety, the city aims to provide a stable and sufficient funding source to meet these growing demands.
However, critics argue that this move is an attempt to circumvent the will of the voters, who have twice expressed their desire to limit tax increases. They contend that the city should find alternative ways to fund these essential services without imposing additional financial burdens on residents.
Upcoming Meeting
The City Council will discuss this proposal at their next regular meeting on Thursday, July 18, 2024, at 6:00 PM in the City Council Chambers, located at 120 Malabar Road, Palm Bay, Florida 32907. Residents are encouraged to attend and voice their opinions on this critical issue.
Conclusion
As Palm Bay prepares for the November 2024 election, the proposed public safety millage will undoubtedly be a contentious issue. Voters will need to weigh the city's pressing public safety needs against their previous decisions to limit tax increases. The outcome will determine whether the city can secure the necessary funding to enhance its public safety infrastructure or if it will need to explore other avenues to meet these demands.
Stay informed and engaged, Palm Bay. Your vote shapes the future of our community.
Sources:
City of Palm Bay Referendum Results, 2016 and 2022.
Palm Bay City Council Meeting Records and Proposals.