News Details (Posted: July 24, 2008):

Rockledge Tax Rate Up, but Taxes Likely to Drop

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By: REBECCA BASU

Although the city council unanimously approved a proposed millage Wednesday that would raise the city's tax rate, many property owners likely will not see an increase in next year's tax bill.

The proposed tax rate is $5.48 per $1,000 of assessed value including the rolled-back rate. State law limits how much cities can raise taxes above the rate that would raise the same amount of money as in the previous year's budget.

This year for Rockledge, that rate amounts to no more than 67 cents for each $1,000 of assessed value.

Homeowners' tax bills are likely to decrease this year because the homestead exemption has doubled from $25,000 to $50,000.

That means a $200,000 home with the $50,000 homestead exemption, under the proposed tax rate of $5.48, likely would have a tax bill of $822, the city's finance director Dave Henderson said.

At last year's rate -- and with the previous $25,000 homestead exemption -- that home's tax bill was $841.

Any savings will vary depending on a home's value, location and homestead status.

Henderson wouldn't speculate on possible cuts to the budget, currently estimated at $26 million, or whether there would be a reduction in the city's work force. Major capital projects, such as a new police station, remain on hold.

Many individual department budgets came in lower than last year, with the exception of police and fire, which face high gasoline costs. For example, the police department's fuel expenses are projected to jump to $135,000, from $85,000 budgeted last year.

The current budget doesn't take pay raises into account.

There are limited funds for raises.

Last year, workers got about half the normal pay raise levels of 5 percent to 6 percent.

The council also approved a sewer rate increase of 3 percent, which translates to $1.25 more per month for residents. That takes effect Oct. 1.

The proposed tax rate will get first reading Sept. 3. That figure could lower, but it can't go up, according to state law.