Holding the line on the tax rate, Wildwood commissioners voted Monday night to set the city’s 2020-2021 rate at $3.40 per $1,000 assessed valuation, the same rate as this year.
It is slightly below the rolled back rate of $3.41. The rolled back rate is the amount needed to collect the same revenue from existing properties as the prior year.
Municipalities are expected to report their projected tax rate to the state by Aug. 4. Final budget approval will be in late September.
Despite keeping the same rate, Wildwood’s total property tax revenue is expected to rise by 34 percent to $7.1 million due to rapid growth, especially in the Villages of Southern Oaks south of State Road 44.
The city’s gross taxable property value is expected to reach $2.2 billion next year, up $560 million.
One reason that next year’s rolled back rate is above the tax rate is due to a substantial increase in homestead exemptions. Wildwood has 619 new exemptions totaling $31 million.
Growth also has meant increases in utility service fees and franchise fees. Due to COVID-19, income from the one-half percent sales tax and state revenue sharing is expected to be stagnant or lower.
Commissioners got their first look at next year’s proposed budget at a workshop last week. Two more budget workshops are scheduled next month.
The budget proposes a 2.9 percent increase in water and waste water usage rates. Utility expenses are anticipated to exceed revenues by $935,000. Construction of water main and sewage line extensions will be financed without borrowing money.
The $7 million police headquarters at U.S. 301 and County Road 462 West has been completed, but other capital projects include Millennium Park improvements, bathrooms at Lake Deaton and Baker House and $800,000 in pavement improvements.
Nine positions would be added including three each in the police and public works departments, two in the utilities department and one in the finance department.