Daytona Beach adopts $343 million budget and 11% property tax increase.

DAYTONA BEACH – City commissioners have approved a $343 million budget that comes with a double-digit property tax increase and includes nearly $1.4 million to cover city employee raises.

At their meeting Wednesday night, city commissioners unanimously approved the new property tax rate and budget that includes $256.89 million in operating expenses and $23.82 million designated for capital projects.

The biggest fund within the city's spending plan is the general fund, which tallies $138.9 million and will go toward paying city employees and running everything from the police and fire departments to parks.

The water and sewer fund tallies $71.8 million, and the solid waste management fund holds $25.3 million.

The new fiscal year begins Oct. 1.

The city has a vast array of projects and efforts planned in the year ahead. Money has been earmarked for flood mitigation, affordable housing, the East International Speedway Boulevard overhaul, a new fire station on Ridgewood Avenue south of City Hall and improvements to Jackie Robinson Ballpark.

Other priorities include helping the homeless, giving North Beach Street a new streetscape, and improving digital infrastructure.

Mayor Derrick Henry said he also wants to ensure road resurfacing and sidewalk projects remain a priority.

The city started a dedicated fund for roads and sidewalks a few years ago and began by putting $4 million in the fund. Another $100,000 was added last year, and this year's budget upped the total by an additional $100,000.

Henry said he wants an even larger increase in the new budget year, and he challenged City Manager Deric Feacher to find money for at least another $250,000. Feacher said he'll work with staff on that.

"The number of roads we've resurfaced is important," Henry said, noting it's one of the things residents appreciate most.

Daytona gets 11% property tax increase

Commissioners adopted a property tax rate of $5.43 for every $1,000 of assessed taxable value. That's the same property tax rate the city has used in the fiscal year that's going to end in a little over a week, but under state law it's considered an 11% tax hike because increased property values mean the same rate will generate more money.

To collect the same amount of money from property owners in the upcoming budget year, the city would have had to use the rolled-back rate of $4.88 for every $1,000 of assessed taxable value.

The $5.43 rate commissioners chose is an 11% increase over the rolled-back rate, and it's expected to yield $43.85 million in property tax revenue.

The city would have collected $4.4 million less if it had used the $4.88 rolled-back rate, city Budget Officer Fredrik Coulter told commissioners Wednesday night.

All of Daytona Beach's city government employees will receive a 3% raise effective Oct. 1. That includes police officers, firefighters, both unionized and non-unionized general employees, and managers including the city manager and city attorney.

Feacher's salary will increase to $285,681 Oct. 1, and then his pay will rise to $291,395 in April.

All active employees not at the maximum of their pay range will also receive a 2% pay increase in April. Those at the cap will receive a 2% lump sum.

The additional cost to the budget to pay for raises for workers represented by the American Federation of State, County and Municipal Employees union is $574,494.

Raises for police officers and sergeants tallied $490,350, and pay for police lieutenants cost $39,448.

Raises for firefighters came to $259,740.

City sets $9.6 million CRA budget

Commissioners also approved a $9.6 million budget for the city's five community redevelopment areas. The CRAs are funded by property taxes generated from the increased value of properties within the special districts since they were founded decades ago.

The CRAs are located within Midtown, downtown, Ballough Road, Main Street and South Atlantic Avenue. The Main Street CRA has always generated the most tax increment finance dollars, and in the upcoming budget year, it's expected to bring in $5.63 million.

More Daytona Beach budget news: Daytona Beach seeks $111.2 million from federal government in storm relief funds

The downtown CRA is expected to generate $2.26 million, Midtown is budgeted at $1.03 million, South Atlantic is forecast to pull in $424,380 and Ballough Road is set at $258,324.

City commissioners also approved securing a $6.5 million loan for Midtown to make improvements in that struggling neighborhood.

You can reach Eileen at Eileen.Zaffiro@news-jrnl.com

This article originally appeared on The Daytona Beach News-Journal: Daytona Beach adopts new city budget and property tax rate