School district has higher budget, slightly lower tax rate

Monroe County homeowners, on average, will see an estimated $30 reduction in the School District’s portion of property taxes, administrators said as they recently presented a balanced budget for the coming year.

The tentative millage for 2016-17 is $3.48 per $1,000 of assessed property value, or $348 per $100,000. It’s lower than than last year’s $3.55 rate. That reduction, however, is due to a 5.65 increase in the property tax roll.

A $500,000 house in the Keys with a homestead exemption would generate $1,655 a year in school taxes. Without a homestead exemption, it would be $1,742.

“Even with the lower millage rate we are going to generate more tax revenue than we did in the prior year,” Jim Drake, the district’s finance director, said at last week’s School Board meeting. “That’s what requires us to advertise a notice of a tax increase.”

The School District’s cut from the state will be $14.1 million, Drake said.

The district’s 2016-17 fiscal year general fund budget for operating expenses including salaries and benefits totals $98.9 million, which is $3.7 million or about 4 percent higher than the prior year’s, while the total annual budget is $170 million. That includes capital expenses and the like.

A reserve fund balance is estimated to hit $11 million, with $9 million unassigned.

The millage rate, approved July 26, cannot rise but it could be lowered before September.

The board will hold its second budget hearing of the season Aug. 23 in Key West and the final public hearing is Sept. 13 at Coral Shores High School in Tavernier.

This story was originally published August 3, 2016 at 9:20 AM with the headline "School district has higher budget, slightly lower tax rate."