SORRENTO — The Town Council plans to vote during its 6 p.m. July 3 meeting whether or not to keep the town’s 2012 millage rate at current levels, town officials said this week.
The council faces the decision because this is a reassessment year across Louisiana, when assessors make their quadrennial check on the assessed values of homes and businesses.
Because of reassessment, Ascension Parish Assessor Renee Mire Michel has recommended rolling back the millage rate in Sorrento from 6.11 mills to 6.07 mills.
Taxable assessed values in Sorrento rose from $7.36 million to $7.67 million between 2011 and 2012, according to figures from the parish Assessor’s Office.
After a reassessment, taxing bodies are required to roll back rates to the recommended level so they receive the same amount of money as the year before, despite increases in property values.
But with a two-thirds vote of the governing board, taxing agencies can roll millage rates forward to the previous rate and gain additional tax revenue based on higher property values, according to the state constitution.
During a meeting Tuesday, the Town Council agreed to consider the proposed ordinance setting the town’s 2012 millage rate at 6.11 mills and called for the July 3 hearing.
During that meeting, the council also unanimously adopted the town’s proposed 2012-13 operating budget for the fiscal year starting July 1 and ending June 30, 2013.
The budget shows a proposed operating surplus of $29,715.
“I haven’t heard the word ‘surplus’ in a while. That’s nice to hear,” Councilman Chad Day said.
The budget projects $2,064,400 in total estimated revenues and $2,034,685 in total estimated expenditures.
Two capital projects are included: construction of a new community center and improvements to the town sewer system.
Two federal grants worth about $1 million would cover the costs of the two projects, said accountant Jacob Waguespack, who worked with town officials to prepare the budget.
If the Town Council were to roll back to 6.07 mills for 2012, property tax revenue is still expected to increase between 2011 and 2012, from $44,988.21 to $46,583.18.
Assessed value growth this year includes increases not only from the reassessment year but also from new development and annual reassessments in property categories not related to the quadrennial reassessment, the assessor has said.
David J. Mitchell and
Kate Stevens contributed
to this report.