(PENSACOLA) --- At the current millage rate, projected City of Pensacola general fund revenues are expected to decline by $256,000 in fiscal year 2027.
However, the rate, which assesses property taxes, will raise Pensacola property tax revenue by $1,148,300 next year.
That was the message City of Pensacola Finance Director Amy Lovoy gave to the elected officials on July 16, adding that the city has "taken proactive, measurable cost-containment actions," including a citywide hiring freeze effective September 1.
(Photo: City of Pensacola Finance Director Amy Lovoy informs elected officials of current millage rate figures for Fiscal Year 2027)
The tentative Fiscal Year 2027 millage rate for the City of Pensacola is 4.2895 mils and for the Downtown Improvement District is 2.0000 mils.
“The decision to maintain the current millage rate of 4.2895 rather than reducing it to the rollback rate of 4.126 is necessary to ensure the City of Pensacola can continue to provide essential services at current levels while responsibly managing its financial obligations," Lovoy said.
Staff documents note, “the total certification value for Real and Personal Property is $7,163,114,549, an increase of 5.32%."
The finance director said other areas of reduction include freezing all non-mandated overtime and reducing cost-of-living adjustments for employees, adding "these measures reflect a disciplined effort to control expenditures without compromising the core responsibilities to residents."
Despite the reductions, the city must still meet unavoidable cost increases to sustain current service levels," Lovoy said, adding all general fund department levels, but one, remain at “flat funding."
However, “public safety and delivery” costs more, according to Lovoy, saying the police department's budget is not flat. Next year, the police department will require an increase of approximately $1.3 million to fund routine salary adjustments and benefits. That does not include an additional $200K in police vehicle fueling costs.
“These increases alone exceed the revenue lost already anticipated under the current mileage rate,” Lovoy said.
The rollback rate would increase the loss to the general fund by up to $1.2 million, not $200K, according to the finance director, who said the reduction compounds "existing financial restraints and create a structural imbalance."
(Photo: Pensacola City Millage rate staff document presented to elected officials July 16)
Elected officials discussed the rate, with Councilwoman Jennifer Brahier asking how much property taxes will rise from last year with the rate.
Answer: $1.148,300 million.
“Without seeing a budget, that is pretty problematic,” Brahier said, asking if the Community Redevelopment Agency is held to the figures stated.
“They will not,” Lovoy said.
Councilman Charles Bare considered the rollback rate, in that it may “better prepare us for the future.” Council President Allison Patton was the first to respectfully disagree.
“I would love to do that, but given the change in the law on what we can do going forward and how that process would work, I really don’t see realistically that this is the time to do it," Patton said.
Larry Downs Jr. was the only resident to speak on the matter, suggesting a reduction in city operating costs.
“I am sure there is a way to cut it,” Downs Jr. said, adding there is overspending in city and county budgets. “You should have done this before; you shouldn’t just keep having more and more fluff.”
(Photo: Larry Downs Jr. tells officials the millage rate is high due to excessive government spending)
Downs Jr. related the millage rate to tourism tax, saying “just because you can take from it doesn’t mean you should.”
Shortfalls in the existing budget kept Patton unwilling to consider the rollback rate.
“It should have been some year, but this is not that year,” Patton said.
Councilman Casey Jones agrees, saying he, too, thought the rollback could work, “but if we do and this (ballot question) passes, then I don’t want us to have to raise millage rates.”
“I think the best thing to do is keep the current rate,” Jones said.
(Photo: Pensacola City Millage rate tax revenue staff document presented to elected officials July 16)
Brahier noted the election could greatly affect rates, making her decision “troublesome.”
“We have some big things on the ballot in November,” Brahier said.
The Council reached a 7-0 consensus to move forward with the rate. The first public hearing on the millage rates is at the Sept. 9 meeting at 5:30 p.m.
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