Citrus County commissioners say tax hike may be needed

Florida TaxWatch issues list of demands for state legislative session.

Citrus County’s property tax rate, which has dropped steadily the last six years, could be jumping to pay for high-profile programs that citizens say they want.

During a preliminary budget discussion Tuesday, county commissioners said they generally supported increasing the property tax by nearly a half mill to help fund mental-health services, residential road resurfacing and emergency medical services.

And commissioners say they believe Sheriff Mike Prendergast is preparing a budget increase to bump deputy pay that would require an even higher tax rate.

Property tax rates are set in mills. One mill equals $1 for every $1,000 of taxable value on property. One levied mill brings in about $10 million in revenue to the county’s general fund, budget director Colleen Scott said.

Board Chairman Ron Kitchen Jr., who rarely supports any property tax increase that exceeds the rate of inflation, said he could back a higher tax so long as funds are restricted for specific purposes.

“I can live with that,” he said.

Commissioner Jeff Kinnard in particular urged a tax increase to fund the resurfacing of residential streets, which commissioners have emphasized as a priority each year even as need outpaces revenue.

“We just can’t keep talking about how important this is and not fund it,” Kinnard said.

Citrus County generally spends a minimum $3 million annually to resurface neighborhood roads, though officials say the amount should be closer to $12 million to get the county onto a 25-year repaving cycle.

During the discussion Tuesday, commissioners found themselves on familiar ground: wanting a sales tax increase to pay for the road resurfacing, yet realizing the difficulty of convincing the public to vote for it.

“It needs to be something the taxpayers will support,” Kitchen said.

A penny sales tax would give the county about $14 million in annual revenue. County Administrator Randy Oliver estimated tourists would cover about a quarter of that.

Commissioners informally agreed that a property tax increase will be needed to cover additional road resurfacing, emergency medical services and the county’s portion of LifeStream Behavioral Center’s Baker Act facility in Lecanto.

They also expect Sheriff Prendergast to seek up to $5 million for higher deputy pay which, if commissioners approve, could bump that tax increase to a full mill, or about 13% higher taxes.

The county has kept the tax rate steady while bringing in more money each year; the taxable value of the county keeps increasing as the housing market booms.

Commissioners are expected to next discuss the budget in July.