Newberry City Commission adopts final budget and property tax rates, increases utility rates and development fees
BY DAVID LIGHTMAN
NEWBERRY, Fla. – At their September 23 meeting, the Newberry City Commission passed a 5.9000 property tax millage rate and adopted the FY2025 City budget, both on second readings. They also passed an ordinance to increase development fees, increased some utility rates on second reading, and authorized a loan application to pay for a proposed $5.8 million water tower.
Budget and property tax millage
Assistant City Manager Dallas Lee gave a presentation on the proposed 5.9000 millage rate and FY2025 City budget. Lee said the 5.9000 millage rate is the same as the FY2024 rate, but it is 9.83% higher than the rolled-back rate of 5.3721 mills and therefore is considered a tax increase that had to be advertised via a TRIM notice.
Lee said the proposed budget was developed at the 5.9000 millage rate, and the total budget is $54,730,732, a net increase of $8 million (partially due to funding for the new City Hall building). Lee said, “The final general fund budget is $14,455,349… The final capital improvement funds budget is $14,989,770… The final special revenue funds budget is $8,486,847… The debt service fund budget is $400,880… The final enterprise fund budget is $15,208,786… The final internal service funds budget is $1,189,100.”
Commissioner Tim Marden made a motion to approve the 5.9000 millage rate, and Commissioner Mark Clark seconded the motion. It passed unanimously on second reading.
City Attorney Scott Walker read a resolution to adopt the proposed city budget. Clark made a motion to pass the resolution, and Commissioner Tony Mazon seconded the motion. It also passed unanimously on second reading.
Electric rates
Lee gave a presentation on utility rates and said, “Residential electric rates are proposed to be adjusted by 1.5% for an average residential impact of $1.81 per month. Non-residential rates are proposed to be adjusted in a similar fashion. These rate adjustments are required to maintain the financial position of the utility and support funding of the future required infrastructure. FMPA has projected a lower fuel cost next fiscal year, which will allow the City to reduce the power cost adjustment and offset this increase with these rate adjustments. Our electric rates will continue to be competitive within our region and within the state.”
Walker read an ordinance to amend the electric rates. Marden made a motion to pass the ordinance, and Mazon seconded the motion.
In response to a question from Mayor Jordan Marlowe about the possibility of utility increases being used to fund the charter school application, Lee said, “No sir, Mister Mayor, there’s no funding in the proposed budget for anything to do with the charter [school]. In addition, state law and generally accepted accounting principles require that your utility funds stand separate and fund themselves.”
The motion to increase electric rates passed unanimously on second reading.
Wastewater rates
Lee said wastewater consumption and customer charges will increase by 9.5% for residential accounts, for an average monthly impact of $6.80. Lee said, “The primary driver behind these rate increases was additional permit compliance requirements placed on the City by the Florida Department of Environmental Protection, inflationary factors, and continued maintenance increases.”
Walker read an ordinance to amend the wastewater rates. Commissioner Monty Farnsworth made a motion to pass the ordinance, and Marden seconded the motion. It passed unanimously on second reading.
Water rates
Lee said water consumption and customer charges will increase by 6% for residential accounts, for an average residential impact of $2.07 per month.
Walker read an ordinance to amend the water rates. Farnsworth made a motion to pass the ordinance, and Marden seconded the motion. It passed unanimously on second reading.
Development fees
Lee discussed fees on new development: “In 2023, the Commission directed staff to hire a rate expert to complete a study on the appropriate rate for development fees. The study was completed, and a recommended increase [is needed] in the fees to allow for future funding of infrastructure improvements needed to support development within the city such as the wastewater treatment plant and the new water tower. These fees have been publicly discussed in four meetings and are proposed to be stepped in 50% each year for the following two years… This ordinance requires a supermajority approval from the City Commission.”
Walker read an ordinance to update the development fees as proposed. Clark made a motion to adopt the ordinance, and Farnsworth seconded the motion. It passed unanimously.
Certificate of Achievement for Excellence in Financial Reporting
Mayor Marlowe commended the City Manager and staff for receiving the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association for the fourth consecutive year. Marlowe said, “It means that other folks are outside looking in, and they are saying ‘You guys are transparent. You guys are accountable. You guys are financially responsible.’ I don’t know of any other local community that can claim that.”
Loan application for a water tower
Walker introduced a resolution to authorize a loan application and agreement to fund the construction of an elevated water tower. Lee said the loan application will be for $5.3 million from the FDEP State Revolving Fund, and the City has also been awarded $1 million in legislative appropriations to put toward the project. Lee added, “The development fees that the Commission just increased actually will pay for this debt.”
Farnsworth made a motion to approve the resolution, and Mazon seconded the motion. Lee clarified that they will not actually begin borrowing money and accruing financing fees until they are ready to begin construction on the water tower.
City Manager Mike New said, “This is a significant infrastructure project for the City. This is the single largest enhancement that we need to make on our water system.” The motion passed unanimously.
I guess socialism is okay if the “right” does it.
“All for ourselves and none for others, seems to be the vile maxim of the masters of mankind.”
Tax increases in Springs County! Note how the tax increase is buried in the story (“therefore is considered a tax increase that had to be advertised”). If this story involved the homeless or someone on probation, you can bet the Chronicle would add it to headline. Ask yourself why.
Under that statute, any millage above the rolled-back rate is considered a tax increase. No local governments that we cover adopted the rolled-back rate, so they all increased taxes by that definition because increased property values will give them more revenue.
“Newberry City Commission Adopts Final Budget, Votes to Increase Taxes”
Fair enough, but is this fact brought out when the GCC is under the same attack from posters here??
I don’t know whether you’re responding to me or Jed, but Jed is complaining that the headline doesn’t point out the technicality of the tax increase. The headlines are very similar for Newberry and Gainesville, both of which kept the millage rate flat – but Jed is only complaining about Newberry because the reporter chose to include the part of the script (which was read in every local government meeting) that says it’s statutorily a tax increase if a government adopts anything except the rolled-back rate. The rolled-back rate was reported in every article we’ve published about property tax rates, and no local government that we cover adopted a rolled-back rate.
Most people understand that if the value of your property increases but the millage rate stays flat, your taxes increase, but most people don’t consider that to be a “tax increase” because the government is taking the same percentage they took last year.
So, Tim Marden (the Springs County Czar) voted for a flat millage rate that increases taxes. The county voted to decrease its millage rate (for the eighth year), so the increase is smaller. Marden will tell you that his tax increases are good and the county’s are bad. This is hilarious.