Demand and cost for city services amid rapid population growth, inflation and labor/supply chain issues could mean a modest increase next year in Wildwood property taxes.
By a 4-1 vote, Wildwood commissioners Monday set a maximum tax rate of $3.00 per $1,000 assessed valuation for the 2022-23 fiscal year, which begins Oct. 1.
The maximum rate would be a decrease from this year’s rate of $3.25, but above the rollback rate of $2.87. The rollback rate is the amount needed to collect the same revenue as the prior year excluding new construction. Any amount above the rollback rate is considered a tax increase.
Commissioner Marco Flores voted against the maximum rate and said he wants to set the amount at the rollback rate. Commissioners could reduce the maximum rate before the final budget is approved in September, but cannot increase it.
The $3.00 maximum rate was recommended by City Manager Jason McHugh, who offered a presentation of the proposed budget at a special meeting.
The owner of a $400,000 home would pay $1,200 under next year’s maximum rate compared to $1,299 this year, according to a millage rate comparison. But with home values rising rapidly, that $400,000 home would be worth more and the assessment could go up.
Wildwood is expected to collect nearly $3 million more next year in property taxes, $318,400 more in utility service taxes, $764,000 more in franchise fees and $626,278 more in state revenue sharing.
“We can easily justify the need for the additional money that will come in,” said Mayor Ed Wolf. “It would be fiscally irresponsible for us to adopt the rollback rate.”
McHugh said the city needs to set the tax rate higher than the rollback rate because of increasing demands for service and capital projects due to rapid population growth.
“We’ve got numerous goals that the residents are asking us to achieve,” he said. “I’ve been concerned about the millage rate going too low, too fast.”
Capital projects and their estimated five-year costs include $8 million for the downtown master plan, $11.5 million for design and construction of Millennium Park improvements and $6.9 million for Clay Drain Road improvements.
Other projects include expanding and upgrading the wastewater treatment plant and water main extensions.
The volume of capital projects will put the capital improvement project fund in the red by $3.1 million in 2025, McHugh said.
The city manager said Wildwood may have to cut costs, eliminate some projects or borrow money.
McHugh presented more than 50 initiatives under the categories of community engagement, transportation, affordable housing, downtown redevelopment, infrastructure and employee recruitment and retention.
Those initiatives will be included in the city’s strategic plan expected to come up for commission approval in September.
Twenty-one positions would be added in next year’s proposed budget. They include eight police officers, six utilities employees, three public works employees and one employee each for the fleet, parks and recreation, development services and information technology departments.
