By Terry Witt-Spotlight Senior Reporter
Levy County Commissioners tentatively approved a property tax rate of 9 mills Tuesday to help fund a total budget estimated at $134 million for 2023.
The proposed budget has grown by $17 million over the current year’s spending plan but includes $12 million of federal economic recovery funds authorized by Congress to take the sting out of the COVID-19 shutdown.
A big chunk of those recovery funds could go toward the purchase of a new communications system for the Levy County Sheriff’s Office. The communications system is expected to cost between $7.4 and $8.9 million.
Bids for the communication system have been received but haven’t been reviewed by staff. It appears the county can afford to pay for the entire communications system without borrowing money, but a final decision hasn’t been made on whether taking out a loan is a better option than paying cash.
Another big number in the budget is the roughly $43 million of cash the county commission expects to carry forward into the new budget year beginning Oct. 1. The cash includes the recovery money which has been primarily earmarked for the communications system.
Jared Blanton, financial director for the clerk’s office and budget officer for the county commission, said keeping the millage rate at 9 mills will generate an additional $2.3 million in next year’s budget.
The state requires counties to advertise the 9-mill rate as being a tax increase, even though 9 mills is identical to the millage being levied in the current budget. That’s because higher property values and new construction will add value to next year’s tax roll.
Commissioners have the option of lowering the millage rate at the Sept. 6 of Sept. 20 public budget hearings.
The board had the option at Tuesday’s budget hearing of lowering the millage rate to take advantage of the higher revenue levels but opted to stay with 9 mills. The national economy has officially entered an economic recession and commissioners are uncertain about its impact.
Recessions often slow the economy and slow job growth, or in worst-case scenarios result in job layoffs. Government agencies, however, rarely lay off employees in recessions.
There was also discussion of the county gas tax, a sales tax levied on every gallon of gas and diesel purchased in Levy County. The county currently levies a 7-cent gas tax on every gallon of gasoline and diesel sold in the county. The gas tax is expected to generate about $2.2 million in revenue next year, which isn’t enough to fund the entire $7.4 million Levy County Road Department budget.
Commissioner John Meeks said he wished the county could index the gas tax to keep pace with rising inflation, but the state allows the county only a flat 7-cent gas tax with an option for an 8th-cent for specific purposes.
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Board of County Commission Regular Meeting August 2, 2022; Posted August 2, 2022
