The city of Apopka on Wednesday became a member of a relatively exclusive Central Florida club when city commissioners unanimously voted to increase the tax rate for the upcoming year.
Such a property tax hike is rare this year ahead of a statewide vote in November asking residents whether they want to slash property taxes. The only others to approve, or consider approving, such increases are the Lake County cities of Umatilla and Tavares, and Casselberry in Seminole County.
The county governments in Lake, Orange, Osceola and Seminole and other local cities plan no tax rate hikes in a year when property tax cuts have dominated political discussions.
Apopka’s 3.1% tax rate increase means property tax bills will go up about $100 for a house assessed at $400,000. The change is expected to generate about $2.1 million or 18.9% more in additional revenue.
The cities raising, or looking to raise, taxes said the extra money is needed because of population growth, development, infrastructure and the skyrocketing costs for simply maintaining the existing services residents expect.
Apopka Mayor Nick Nesta said by email Thursday that its rate had historically been politicized and kept artificially low as the city subsidized its general revenue fund with money from other sources, like city utilities.
“This game that was being played with the millage rate dismantled proper budgeting, took away the ability to plan and forecast, and leaves residents confused about the true cost of their services,” Nesta said. “This ‘increase’ actually puts us just under where the millage rate was at two years ago.”
The Florida Legislature decided this spring to ask voters if they wanted to slash property taxes, with lawmakers saying local budgets had grown too fat on the backs of homeowners.
The ballot referendum, if approved by 60% of voters, would create a new $150,000 homestead exemption in 2027 and a $250,000 exemption in 2028, which could mean thousands of dollars in tax savings to homeowners.
But property taxes fund most local services, including police and fire protection, which are usually the largest line items in a local government budget. Many local leaders fear they’ll have to slash budgets, reducing critical services and amenities residents enjoy, including parks, libraries and Fourth of July celebrations.
The resulting uncertainty has led to the proposed amendment coming under fire from local Republican officeholders and several prominent GOP sheriffs, including Polk County Sheriff Grady Judd and Seminole County Sheriff Dennis Lemma. That is despite top Republicans such as gubernatorial nominee Byron Donalds, Gov. Ron DeSantis and Chief Financial Officer Blaise Ingoglia backing it.
The local governments of the cities which have adopted increases, or are considering them, represent a mix of political affiliations, though officially their elected leaders serve in nonpartisan roles. But all four of their mayors are registered Republicans.
In southeastern Orange, Belle Isle had proposed increasing its rate by 4.5%, but its city council ultimately voted down the hike last week and maintained its existing rate, but due to rising property values, residents will still see a slightly higher tax bill than last year.
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City Manager Rick Rudometkin said the proposed hike was due to increases in costs for fire protection from the county.
“Fire has increased almost $1.2 million over five years,” Rudometkin said.
In Seminole, Casselberry has proposed increasing its rate by about 6.5%, adding about $105 to the tax bill for a $400,000 home. A final vote by the city commission is set for Sept. 28.
City Manager Randy Newlon said by email that after several years of maintaining, and even reducing the rate, the city must consider an increase for the sake of sustainability.
“The millage increase will right-size revenues to expenses as the city assesses the potential for more economic uncertainty,” Newlon said. “We understand citizens’ frustrations, but this change is necessary for the provision of police protection, repairs to infrastructure and other important services.”
In Lake, the Umatilla City Council on Tuesday increased its rate by about 1.6%, adding about $46 more on a tax bill for a $400,000 home. In Tavares, the city council on Wednesday increased its rate by 4.1%, adding about $110 in tax for a $400,000 home.
The process of getting the increase approved in Apopka was not without obstacles — with Commissioner Nadia Anderson among them even though she ultimately voted for the increase and budget.
Anderson said Thursday by text message that those votes should not be interpreted as support for the original budget and the even-higher millage proposals first presented to the commission.
“I opposed the initial massive tax increase, helped block it, and fought to remove millions of dollars in additional spending before ultimately voting for a budget that allowed the city to continue operating,” she said.
The final budget and tax increase, she said, was needed “to keep essential city services functioning.”
During discussions about the rate and budget, Anderson often raised concerns about spending millions on new positions with the uncertainties of the property tax referendum.
She has cited as an example the July hiring of Steven “Trooper Steve” Montiero as public information director. He started Aug. 10 and gets a base salary of $180,000 annually — far above the $133,350 paid to Nesta.
Nesta has said Montiero’s position is critical to providing the public with accurate and consistent information on city issues.
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Staff writers Martin Comas and Ryan Gillespie contributed to this report.