NORTH PORT – When the North Port City Commission examines the proposed 2025-26 budget on June 16-17, board members will see a plan by the city manager that includes as much as $331.4 million spending requests.
About $97.4 million of that spending would be from a general fund budget that includes a projected $39.4 million from property tax revenues.
What the commissioners will not see is a proposal to reduce the property tax rate of 3.7667 mills – which reverses a direction they contemplated during a March budget workshop.
One mill is equal to $1 for every $1,000 of taxable property value.
North Port property owners also pay district fees to support road and drainage, solid waste collection and fire services.
In March, the commissioners arrived at a consensus to cut property taxes enough to return about $3 million to taxpayers, as a show of fiscal responsibility ahead of a May 13 referendum that included several capital projects.
One of those projects, a new North Port Police station, would have been paid for out of general obligation bonds funded through property taxes.
Anticipated city revenues for the 2025-26 fiscal year are $314.97 million, with as much as $96.3 million available in the general fund.
North Port taxable property value increases 8.7%
According to the most recent figures from the Sarasota County Property Appraiser’s office, the city’s taxable value should increase from $9.96 billion to $10.8 billion.
But that represents only a 8.7% increase in taxable value – a significant reduction from the double-digit growth experienced over the past three years, which featured a 17.4% increase this year, 17.2% for 2023-24 and a whopping 25.5% for 2022-23.
Personnel costs anticipated to increase
Health insurance costs are projected to increase by 15.4% in 2025-26 – a continuation of double-digit increases for this year and 11% for 2023-24.
Meanwhile, just to maintain the current level of service, salary costs are projected to rise 3.5%, with a 1% cost of living adjustment also factored in as the city continues an effort to meet the increase in the minimum wage, which is rising to $14 an hour in September and $15 an hour in September 2026.
Led by a request for seven new firefighter/EMT/paramedic positions, city departments ar asking to hire as many as 27 new employees.
If all were granted, that would increase the city’s payroll from 945 full-time equivalent positions to 972.
City still contemplating funding options for capital projects
City commissioners are still determining the best ways to establish a fund for emergency spending, as well as pay for a new police station, water and sewer improvements and a new waste transfer station.
Establishing a “certificate of participation” program similar to how school districts finance new school construction and a public-private partnership for the capital projects are all possibilities.
The budget workshop begins at 10 am. Monday in chambers at North Port City Hall, 4970 City Hall Blvd. and would continue at 10 a.m. Tuesday, as needed.
This article originally appeared on Sarasota Herald-Tribune: Property tax rate cut off the table as North Port starts 2025-26 budget discussions
Reporting by Earle Kimel, Sarasota Herald-Tribune / Sarasota Herald-Tribune
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