The current millage property tax calculation for the City is 4 for operations and 1.5 for the state mandated pension for police and fire. Each millage brings in approximately $500,000. In order to replace the annual $8,000,000 in assessments the POA currently receives, the current millage of 5.5 would have to be increased to a millage of 21.5, assuming all amenities are kept open.
For simplicity purposes, take a home with an assessed value of $200,000. The increased millage calculation would be as follows: $200,000 x 0.0215 = $4,300. This would be an annual increase in property taxes of $3,200 on a $200,000 home. This $3,200 compares to the 2020 proposed annual assessment of $420.
If the City closed a significant number of amenities and cut $4,000,000 out of the POA budget, you are still looking at an increase in property taxes of $2,700 on a $200,000 home.
If you ask why the property taxes would go up by such a large amount compared to the more modest assessment increase proposal, the reason is that you have 20,500 unimproved property owners paying assessments. These unimproved property owners are currently paying $192 per year in assessments, yet they are only paying approximately $30 per year in property taxes. Unimproved property owners contribute almost $4,000,000 to the POA’s budget. If the POA was disbanded, most of that revenue would go away.
It is unrealistic to think the City can take over the amenities from the POA.