Originally posted Wed, 2009-09-30 23:29
NEW SMYRNA BEACH -- The City Commission approved its own spending plan tonight for fiscal 2010 by raiding the reserves of $969,000 from the city's $10 million reserves to support the proposed $21 million budget.
But by going below the rolled-back rate of 3.7499 per $1,000 of assessed value in favor and even lesser rate of 3.4793, which required use of the reserves, the city will have to come up with nearly an extra $1 million because of state caps on local taxing that limits the city. Commissioner Jack Grasty, who won the primary outright for his seat earlier in the month said the net $35 savings to taxpayers wasn't worth it as a payoff in by dipping into the reserves.
Commissioner Jim Hathaway said that's precisely what the reserves are for, to give tax relief. Commissioner Randy Richenberg, who lost in the primary to challenger Judy Reiker, and Mayor Sally Mackay, who lost as well to challenger Adam Barringer, both voted for the lower rate, as did Commissioner Lynne Plaskett.