Punta Gorda City Council approved setting a proposed millage rate of 3.9500, which is the same as the previous year’s millage rate.

Council voted 4-0 to approve keeping the millage rate the same, which is over the rollback of 3.5942. Council member Debi Lux was unable to attend the meeting due to illness.

A public hearing on the matter will take place at 5 p.m. Sept. 4 at the Military Heritage Museum, 900 W. Marion Ave. in Punta Gorda.

Homesteaded residents’ increase cannot exceed 3% or the change in the National Consumer Price Index, whichever is less, due to Florida’s Save Our Homes legislation designed to prevent residents from being taxed out of their homes.

For those whose homes front canals in Burnt Store Isles, their annual canal maintenance fee will remain unchanged from 2023-24, at $985 per single family residence, and Punta Isles single-family homes will face a $100 increase to $1,200.

Council listened as Finance Director Kristin Simeone explain mounting costs during a slide presentation with input from City Manager Greg Murray.

The presentation covered the city’s five-year plan from 2025 to 2029.

For the Utilities Construction Fund portion, millions have been allocated for a $4 million reverse osmosis expansion and a new $30 million filtration system.

The city plans to convert Charlotte Park residents to a septic to sewer system, and Mayor Lynne Matthews said she would not support doing the conversion “if it costs the current city taxpayers any money to do that.”

Charlotte Park residents have not been asked to agree to pay for the conversion at this time, according to the Punta Gorda City Manager’s office.

Matthews said taxpayers have already paid all the fees necessary to tie into the city water and sewer system.

Currently the city is awaiting funding for the project, and Matthews said it could be pushed back “if we don’t see grant funding.”

Wastewater projects took a bite out of the budget; a new wastewater bio-solid processing plant will cost $2.3 million between 2005 and 2006.

A lot of discussion centered on Utilities Construction Fund water projects and three are new: the $30 million Shell Creek reverse osmosis expansion, a $1 million Airport Road water main replacement and a $1 million Via Tripoli water main replacement.

Murray said spending money to rehab equipment used in purchasing water from the Peace River Manasota Regional Water Supply Authority would be better spent upgrading the city’s own system, as purchasing water from the Authority would cost twice as much.

The city hired a consultant to project costs over the five-year period, and the proforma shows a proposed rate increase of 6% for fiscal years 2025-2029.

Simeone pointed out that the city’s 6% rate is the second lowest out of 16 cities and counties in Southwest Florida. Naples had the lowest rate.

Water consumption is projected to increase 0.5% over the five years.

Other increases will be for personnel, pay raises, health insurance increases and equipment to run the city, including software, electronics, and vehicles.

The city’s 1,400 fire hydrants must be maintained, and in 2025 that cost is budgeted for $225,000, then $100,000 per year thereafter.

Capital outlay costs, generated from department requests, include an $850,000 vac/jetter truck, $300,000 dump truck in 2025 to haul sludge, and other heavy equipment and vehicles.

The city is still awaiting Federal Emergency Management Agency money to restore the city’s marina.

“I find this stalemate by FEMA totally unacceptable. This is ridiculous,” Matthews said.

She said Laishley Marina was so badly damaged by Hurricane Ian “that you can’t even take a group of five boats over there.”

The city also owns the Bayfront Center on Retta Esplanade, which was destroyed by Hurricane Ian. It had been leased by the YMCA and was also rented out for special events.

Simeone said the city has been asking the state when it can begin to demolish it, but it must first undergo an environmental review.

The center and marina have provided income for the city.

Prior to the budget presentation, resident Mike Polk, who spoke out against the rate hikes the previous week, said his displeasure is “not about me. It’s about the people who don’t have homestead exemptions or who don’t yet benefit from the Save Our Homes cap and are paying close to 100% of their certified just value assessment.”

“This will be the third year in a row that you have failed to roll back the millage rate despite double-digit increases in the tax roll. This is the highest tax roll in the history of the city of Punta Gorda and again, no reduction or roll back,” he told City Council during the public portion of the meeting.

Polk, whose wife Jeannine Polk is a candidate and opposing incumbent councilperson Donna Peterman, said he’s talked to people who listed their homes as “they can no longer afford the taxes and insurance.”

According to the Charlotte County Property Appraiser’s website, a home in PGI whose owners were homesteaded in 1998, is assessed at $378,553 and its certified just value is listed at $846,209 post-hurricane when the assessment was lowered due to damages.

Because of its homestead exemption, the property owner paid $7,712 in taxes.

A new owner’s taxable value would be set by the property appraiser, and it is usually based on what the property just value is at time of purchase.

For homesteaded sellers, there is portability of all or part of the homestead exemption.

Those moving from a previous Florida homestead to a new homestead in Florida may be able to transfer or “port,” all or part of their homestead assessment difference.

If eligible, portability allows most Florida homestead owners to transfer their SOH benefit to a new homestead, lowering the tax assessment and the taxes for the new homestead.

To transfer the SOH benefit, one must establish a homestead exemption for the new home within three years of Jan. 1 of the year they abandoned the old homestead, according to the Punta Gorda City Manager’s office.

An owner who owned that property in the prior year is limited to a maximum 10% taxable value increase rather than to the full adjustment to just value if that is higher. It is similar to homestead, but its cap is 10%.

Punta Gorda property owners also have to pay the millage rate for the county.

County Commissioners are presenting their budget at 2 p.m. July 17 in the county’s administration building, 18500 Murdock Circle in Port Charlotte.

Commissioner Joe Tiseo said he will not vote to increase the millage rate, and in 2022, he proposed that it be reduced from 6.3 to 6.1867, “saving tens of millions.”

Commissioners have cut the millage rate “for the last two years,” he said.

But he could not say what the county is proposing for the upcoming tax year until he meets with Budget Director Gordon Burger.