Reserves, Property Taxes and Millage Rates: A Closer Look

General Fund Reserves

The City of Gulfport has $4.6 million dollars in General Fund Reserves. According to Director of Administrative Services Dan Carpenter, the last time the city dipped into the General Fund Reserves was for fiscal year 2006/2007. Prior to that, the highest recorded amount in that fund was $7.2 million during fiscal year 2002/2003.

Property Taxes

Real Estate taxes are declining and it's estimated that the value of taxable property will drop 8.8% from this year to FY 2012. The following information is provided by Dan Carpenter.

• By the numbers that is a decline from $718,451,015 to $654,348,542 of value.
• The City is expected to collect $2,330,288 from property taxes for FY 2010/2011 (Ending Sept. 30th).
• A decline of 8.8% would mean a collection of $2,123,358 during FY 2011/2012; $206,930 less if the current milage rate of 3.4742 were in place.
• Property taxes make up 22% of the revenues used to balance the budget.

Millage Rate

• FY 2005/2006 = 4.30
• FY 2006/2007 = 3.87
• FY 2007/2008 = 3.3487
• FY 2008/2009 = 3.4742
• FY 2009/2010 = 3.4742
• FY 2010/2011 = 3.4742
• Proposed FY 2011/2012 = 4.0 (Proposed on July 28, 2011)

The city would "break even" and collect the same amount of property taxes in FY 2012 as FY 2011 by increasing the milage rate to 3.4742 to 3.8176.

If the city chooses to go forward with the proposed increase, to a milage rate of 4.0, $4 for every $1,000 of assessed taxable property, the city would collect an additional $114,516 in FY 2012, according Dan Carpenter.

General Fund Budget

• FY 2008/2009 = $11,133,075
• FY 2009/2010 = $10,554,914
• FY 2010/2011 = $9,982,955
• Proposed FY 2011/2012 = $10,253,038

There are two special public budget meetings where citizens can address the council about the budget proposal.

• Thursday, Sept. 8 at 7 p.m. at Gulfport City Hall
• Wednesday, Sept. 21 at 7 p.m. at Gulfport City Hall

You can view the agenda for tonight's meeting on the city's website.

Check out the budget timeline from July 15, 2011 to today by clicking on this story.