The fiscal year (FY) ends September 30, so the City of Brooksville and Hernando County governments are in the process of approving FY 2017’s budget. The city’s operating budget is based primarily on property taxes and gas taxes and is divided into three main funds: general, transportation, and fire department.
Property taxes are calculated using millage, or a percentage of every $1,000 of the property value. As property values increase or decrease, the amount the property owner pays will change, and that determines the amount that the city or county has for the budget.
According to documents from the Hernando County Property Appraiser, property values decreased significantly after 2006 and then began to increase in 2010. New construction also improves property values, so the gains have continued, and the 2016 certified (or estimated) property values show a one-year increase of nearly 4%.
Millage rates also vary from year to year. The rate in 2007 was set at 7.500 mils, but since then the millage rate has fluctuated from 6.069 to the current 6.6439.
The proposed FY 2017 General Fund budget shows a 1.74% decrease in spending over FY 2016. This includes paying for city employees, insurance premiums, and retirement contributions. Insurance premiums have increased annually, which fully funds “employee only” medical and dental coverage.
Local gas taxes, which are added to the cost of every gallon of gas or diesel fuel, support the Transportation Fund. This fund pays for road construction and maintenance, traffic signs and lighting, right of way maintenance and drainage, and public transportation operation. This year’s budget has an increase of nearly 30% because of costs associated with both streetlights and traffic lights.
The Fire Department is funded through both ad valorem (based on millage) and non-ad valorem taxes, which is a flat rate assigned to every property. This year’s budget does not show any significant changes, but does include repayment of the loan for the purchase of the new fire truck.
Details of the budget can be found on the city’s website at www.ci.brooksville.fl.us. Budget hearings are generally held in September.