Three Property Tax Goals

Lakeland’s Board of Commissioners have  unanimously voted to set a property tax for the first time in the City’s 35-year history. Having recently experienced a 50 percent decrease in sales tax revenue, due the closing of the Lakeland Kroger and the effects of a dwindling economy since 2008, the Board felt this was the right decision, though a difficult one.

This property tax will help continue the quality of life Lakeland residents have grown accustomed to over the years. With rising needs to improve our infrastructure – bridges, roads and municipal recreation areas for families, among other needs – this tax will help provide the revenue needed to address these concerns. 

The new property tax rate will be 85 cents per $100 of assessed property valuation. The new property tax will generate more than $2 million annually for the City. 

Based on state law, the property tax period actually started on Jan. 1, 2012.  The City is arranging with the Shelby County Trustees Office to collect the taxes.  Residents will get official notices in the mail regarding the amount due and actual due date. 

Objectives of the Recently Approved Property Tax

Three goals that can be reached through a property tax 

A resident at a recent meeting asked what three projects/objectives would not be possible (from a financial standpoint) without property tax revenues, not counting a Lakeland Municipal School System. 

This is an excellent question.  I am noting three achievements  that, in my opinion, the Board of Commissioners considered when determining that a property tax for capital improvements was necessary. 

1. Protecting Our Quality of Life  

Over the past several years, the decline of economic activity at the Lakeland Factory Outlet Mall and the relocation of the Lakeland Kroger have severely squeezed City financials, which have historically depended substantially on the retail sales tax. Sales tax revenues decreased by approximately 50 percent from 2006 to 2012, roughly $600,000 per year. During the same time period, development activity was virtually nonexistent after years of six figure revenues from development fees.

Could the City have survived on the a minimal  “survival budget”? Yes, but the quality of life for Lakeland residents could have suffered as infrastructure deteriorated faster than the City could afford to make the necessary repairs and implement much-needed projects.  

Any city is a major provider of quality-of-life services. These include a range of amenities including quality streets, recreation facilities and adequate storm drainage. The City of Lakeland takes this role very seriously, and we promote our quality of life as a top reason to live here and do business within our limits. Our tagline says it all: Where quality of life is a way of life.”

2.  Kicking the Can

Another major consideration of the Board of Commissioners was that the City is facing capital-intensive projects that relate both to the quality of life and the maintenance of property values.

Delaying these projects would be merely passing these issues on to a future Board of Commissioners and future generations of Lakeland residents. The current Board wanted to face the situation head on and take immediate action.

These major projects include:

• The Canada Road/I-40 Interchange.

• Extension of Beverle Rivera Drive to Huff and Puff/Seed Tick, as well as the traffic signal at Canada Road and Beverle Rivera/Davies Plantation Road:  This will eliminate the traffic hazards at Huff and Puff and Canada Road. 

• New Canada Road: The current Canada Road is inadequate for the traffic. The New Canada Road project has been planned since 1992, and the City has the opportunity to fund this project with a federal grant with a 20 percent match. This means the City is getting an estimated $12 million project for 80 percent off if we take advantage of the federal grant. It is still a cost to the City of $2.4 million, and costs will only increase if not taken care of soon.

• Street and storm drainage repairs: The City engineer has noted numerous street and storm drainage failures. Through effective use of City personnel with some added contract work, the cost of street repairs has been substantially reduced, but it is still expensive. Street overlays and major renovations are necessary throughout the City.

• Park and recreation improvements: The City soccer and baseball fields for our children are woefully inadequate. The City also has undeveloped parks. These play a major role in the quality of life as we cultivate a safe, fun environment for all families choosing to live in our City.

3.  Maintenance of Property Values

During the discussion on the possible establishment of a Lakeland Municipal School System, I fielded many calls and comments about a locally controlled school system helping maintain local property values, ability to sell property, etc. 

This got me thinking about the maintenance of our existing infrastructure and neighborhoods. Factors in maintaining solid property values also include good streets, quality civic and physical infrastructure, recreational opportunities, economic diversity and public safety.

These high-quality essentials are not free; there are costs associated with them. For a house valued at $200,000, the taxed value is 25 percent or $50,000. A property tax rate of 85 cents per $100 of assessed value yields $425 per year in revenue for the City. Simply put, this revenue is invested right back into the City to help maintain those quality-of-life essentials.

I don’t have to go too far from Lakeland to see the terrible result of failing to maintain infrastructure for rapidly growing communities. I feel the Board of Commissioners reviewed the benefits and the costs and then determined that the time was right for a tough decision to be made. 

Because of the commitment of Lakeland’s citizens who have chosen to stay here and enjoy the high quality of life offered, others have taken notice and have decided to also make Lakeland their home. The creation of a property tax will make it possible to continue providing the quality of life that you have grown accustomed to in our City. 

We will continue to keep you updated as more progress is made to make our City the best it can be. 

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