Kissimmee homeowners can expect the same property tax rate next year if the City Commission adopts the proposed 2020 fiscal budget released by city staff earlier this month.
Commissioners meet Friday to discuss the $201 million spending plan.
They are scheduled to vote on the final iteration of the budget in September just in time for the start of the fiscal year Oct. 1.
The proposed budget calls for freezing the property tax rate at 4.6352 mils for the 11th year in a row. One mil equates to $1 of property tax per $1,000 of a home’s assessed value. The owner of a $200,000 house, for example, would have a tax liability of $927.04 next year.
That millage rate would bring in about $16 million in ad valorem taxes next year if home values continue to rise and if new homes under development open as expected, according to a budget summary from City Manager Mike Steigerwald.
Property tax revenues represent about 22 percent of the city’s general fund. Transfer fees from Kissimmee Utility Authority and Toho Water Authority account for 27 percent and 11 percent, respectively. Disbursements from the state, service charges and utility taxes and other sources make up for the other 40 percent of the city’s revenue stream.
“Our two utilities have among the lowest rates in the state, so we’re able to provide a really good inexpensive service to our residents,” Steigerwald said. “Instead of those profits going to the investors, like they do at a private utility, our profits go to our local government.”
This year’s total budget is $38 million less than it was last year when capital funds allocated for the widening of Carroll Street, construction of a new Public Safety and Training Complex and the final phase of the Kissimmee Lakefront Park renovation.
“We’ve got a lot of big capital projects that are still underway, so we’re not budgeting anything major this year,” Steigerwald said.
The general fund – the primary source for the city’s core administrative and operational tasks -- is $73.9 million, about $2.5 million more than last year.
Most of the additional new revenue will come from three multi-family construction projects that are expected to break ground this year, according to Steigerwald.
After several years of delays, the Mosaic Development project will bring 308 new residential units and 10,000 square-feet of retail space on the lakefront. Wendover Housing Partners has plans to build 206 apartments at the former Vulcan Materials concrete plant by the corner of Neptune Road and Lawrence Silas Boulevard. Another 300 to 400 units will be built by Park Square Homes on the undeveloped tract of land behind the Kissimmee/Osceola County Chamber of Commerce on U.S. Highway 192 near Valencia College.
“The vast majority of what we’re doing as an organization is aiming resources to stay ahead of growth and make sure that our services aren’t compromised by the additional residences and buildings being built in the community,” Steigerwald said.
Next year’s budget also calls for giving city’s 700 employees a 5 percent raises and creating 10 new full-time positions, including a small business development coordinator for the downtown.