NSB sets tentative 4.89 tax rate for next fiscal year as budget begins to take shape

During a special meeting Tuesday night, the New Smyrna Beach City Commission unanimously approved its tentative tax rate at 4.89, an increase over the current rate of 4.41.

Commissioners will schedule workshops and public hearings throughout the budget season to further discuss the rate.

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Commissioners cannot increase the amount after Thursday's vote, City Manager Khalid Resheidat explained, which is why they agreed on the 4.89 rate — it gives them room to work out the budget before approving a definitive property tax rate.

How much will NSB residents have to pay in property taxes?

In a presentation to city commissioners, the city’s finance department first suggested adopting a 4.64 tax rate.

As illustrated in an example made in the presentation, this increase would initially raise the property taxes of a $477,946 market value home in the city from $2,110.13 to $2,216.24. — or $106. However, with the city’s 2005 debt service fee sunsetting this month and the reduction on the 2018 debt service fee, that home would in fact see an increase of $11.66.

While the City Commission did not adopt the suggested 4.64 Tuesday, the city could still return to that amount before making a final decision.

With the possibility for rolling back the 4.89 rate adopted Tuesday as budget workshops take place in the coming weeks, it is likely that New Smyrna’s tax rate will remain among the lowest in Volusia County — only behind Ormond Beach (just below 4.0) and DeBary (just below 3.0).

Workshops to determine NSB’s 2024-25 budget

No matter what tax rate city commissioners decide on, the city can expect property tax revenue to come in between $28 million and $30 million for the 2024-25 fiscal year.

This would represent 55% of the proposed $52 million general fund budget revenue stream, which is also expected to include:

• State revenue sharing taxes, 6%.
• Utilities Commission, 8%.
• Public service tax, 6%.
• Charges for services, 10%.
• Franchise fees, 2%.
• Other sources, 13%.

The total budget expenses proposed for next year amount to nearly $139 million — just over half a million less than last year’s budget.

Besides the $52 million general fund, the initial budget proposal expects to dedicate $22.1 million to the capital projects fund, $14.6 million to the stormwater fund, $11.4 million to the airport fund, $10.1 million to the sanitations fund and several other expenses.

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City commissioners will discuss possible adjustments to the proposed budget during a workshop session on Aug. 7.

Once decided, the proposed budget and final tax rate will go through a first public hearing on Sept. 11 and a second Sept. 24, when the City Commission is expected to make its final decision.

This article originally appeared on The Daytona Beach News-Journal: NSB sets tentative 4.89 tax rate for next fiscal year as budget begins to take shape