Lady Lake officials appear to be ready to move ahead with a tax increase to make up for a $650,000 annual loss in communications service tax revenue.
Commissioners had already voted to set a tentative millage rate at 3.8781 but had hoped to lower it. During a workshop Thursday, commissioners appeared ready to leave it there. The final decision on the millage rate will come in September.
To add insult to injury, the town is looking at paying back $1.3 million over the next three years to the Florida Department of Revenue. It’s money the state contends the town has been overpaid in communications services tax revenue. The communications services tax is collected from residents’ phone and cable bills. The money flows through the Florida Department of Revenue which returns the town’s share to Lady Lake.
A homeowner with a $150,000 home with a taxable value of $100,000 will see about a $60 increase on the Lady Lake portion of their tax bill.
Commissioners Jim Richards, who lives on the Historic Side of The Villages, and Dan Vincent, who represents Water Oak, both acknowledged that most of their constituents live in mobile homes and their increase will be more in the range of $15 to $30 per year.
Commissioners have examined the budget line by line, looking for savings. Some options have included eliminating $1,500 for travel and training for commissioners and cutting the road repair budget by 50 percent.
“We’ve got the cushions off the couch and we’re looking for change,” said Vincent.
Commissioners expressed a strong desire to reward employees who won’t be seeing raises.
Commissioners agreed to give each of the town’s roughly 100 employees a one-time $1,000 bonus, payable in September out of this year’s contingency fund.
Commissioners said they want to retain a responsible amount of money in contingency citing the 2007 Ground Hog Day Tornado that cost the town $1.8 million.
“We’re in hurricane season now,” Mayor Ruth Kussard reminded her fellow commissioners.
But as it stands, it looks like the 2015 contingency will be only $11,500. However, the town has more than $5 million in reserves.
“What we are looking at now is the new normal,” said Commissioner Tony Holden.
Lady Lake resident Mabel Barnes, a widow on a fixed income, attended the workshop. She said she cannot afford a tax increase.
“My income is not going up. And I have medical bills,” she said.
Public hearings on the millage rate will be held at 6 p.m. on Sept. 3 and 17.
