Lakeland commissioners unanimously approved a $626.8 million budget Thursday night for the 2019-20 fiscal year. The budget includes a robust slate of economic development incentives while placing money in a fund to address one of the city’s looming financial issues.
Property taxes will remain at the current rate of $5.46 per $1,000 of assessed property value. That’s 3.66% above the rollback rate, which is the rate that would bring in the same amount of revenue as the previous year. The city will charge about $273 in taxes for a home with an assessed property value of $100,000 after applying homestead exemptions.
The commission’s decision was made easier after City Manager Tony Delgado announced that Lakeland Electric now expects a surplus at the end of this fiscal year.
“We found out that Lakeland Electric is having a good year,” he said. “The dividend to the city is going to be more than anticipated.”
The city’s 2020 budget provides money for several new economic and community development incentives, including $2 million set aside for development of the catalyst sites, a conceptual plan to redevelop Downtown Lakeland with a soccer stadium, retail and office spaces, and mixed-use housing.
By the Numbers
Lakeland commissioners have set aside millions of dollars for specific incentives in the city’s 2020 fiscal budget. Here’s a breakdown by the dollar:
‒ $2 million for future catalyst site.
‒ $500,000 fund for targeted economic investment opportunities.
‒ $300,000 to design and build a Cultural Enrichment Center.
‒ $250,000 for affordable housing.
‒ $101,000 to sponsor homeless caseworker and assistance.
‒ $65,000 to Downtown Lakeland improvement projects.
‒ $15,000 to draft preliminary documents for the police department parking garage.
Commissioners set $500,000 for targeted economic investment opportunities and will have to determine the criteria for projects to receive the money. Another $250,000 was set aside to encourage more affordable housing to be built within city limits.
Mayor Bill Mutz’s request for $101,000 to pay for a city-sponsored homeless caseworker and funds to aid in getting people off the street made the cut. So did $300,000 for the design and construction of a Cultural Enrichment Center at the main branch of the Lakeland library.
But Commissioner Justin Troller had asked Delgado to re-examine the proposed budget after the Sept. 5 public hearing to see whether more funds could be freed up. Troller said he’s concerned for the city’s financial future given the extensive number of projects paid for by Lakeland Regional Health Medical Center’s lease payment to the city.
When commissioners agreed to cap Lakeland Regional’s $14.38 million lease payment in August, the city lost approximately $6 million over the next 5 years. It also resulted in the long-term loss of $48.6 million in potential revenue through 2040. The majority of this money would have gone into the city’s Public Improvement Fund to pay for the city’s parks, playground equipment, pools, police and fire equipment and more.
Delgado said several projects were pushed back by years because of funding that was lost in the city’s compromise with the hospital.
While the city’s property tax rate will remain flat, residents will face a 4.5% increase in the city’s water rate and 2.5% increase to the wastewater rate. These changes will cost $2.52 more per month for the average residential household that uses 8,000 gallons.