It’s a bit of too little, too late in the Holmes Beach budget discussion.
Commissioners and residents discussed the city spending increases at the first reading of two ordinances, one to set the millage and the other to approve the proposed budget at a public hearing Sept. 10. Commisisoners also discussed the process the city uses to create its budget.
“I feel like even though we’ve maintained the lowest millage rate in the area, some people have felt it’s a tax increase,” Mayor Carmel Monti said before the public hearing began.
He added, “I feel like we are being fiscally responsible.”
Resident James Kihm disagreed, saying that keeping the millage rate the same is a tax increase and that the city is “looking for a way to spend money whether it’s accounted for or not.” He suggested city officials “justify the expenses and not just take a windfall.”
Bob Johnson — a candidate for mayor on the Nov. 4 ballot — made similar comments during the hearing, adding that he felt the standard should not be “we have the lowest millage around,” but rather that the millage rate be set to cover what the city needs.
The millage rate is a percentage that determines how much property owners pay in taxes based on property values.
It varies among the municipal and county governments based on the overall property evaluation and the government’s spending.
As established by the state, the rollback rate is the millage needed to produce the same revenue as the previous year’s budget. Any rate higher than the established rollback rate is a tax increase.
Keeping the millage — percentage of tax — the same as the previous year results in a tax increase when the overall property value rises.
With the exception of Commissioner Jean Peelen, all the commissioners supported a millage rate of 1.75, which will result in an 8.1 percent increase in ad valorem taxes.
Treasurer Lori Hill said the rollback rate is 1.6352.
“I can only reflect on what’s been said here already. Whether you call it a tax increase or not, more money is coming out of the pockets of the citizens and going to the government,” said Peelen during the city meeting.
She added that if the city were in “dire need,” she could OK keeping the previous year’s rate of 1.75 mills, but she felt several expenses could be cut from the budget.
Peelen suggested cutting non-necessities such as a new website, an extra $40,000 in reserves and five rifles for police. She said if she were to make a “radical” cut, it would be to remove the addition of a police officer from the budget.
“We have enough cops for a city of our size, and we live in a low crime area. I would not approve this,” said Peelen.
But Commissioner Pat Morton expressed concerns of daily visitor counts rising every year, justifying the need for more police officers equipped with more than handguns.
The department with the biggest increase in the proposed budget is general government, which includes the commission’s and mayor’s compensation; employee salaries and benefits; and, excepting police, professional services, which includes legal and planner fees; and expenses related to information technology.
The police budget is a close second, both increase in 2014-15 by nearly $110,000.
“Looking at the overall scope, our expenses have gone up, and at some point in time we have to raise taxes. I think it’s penny-wise and dollar-foolish right now,” said Commissioner David Zaccagnino.
Zaccagnino said he also had some budget items he thought could be cut, but did not have a list for discussion at the Sept. 10 meeting.
Zaccagnino said the commission tripled the number of its meetings thus far this fiscal year, which increases costs.
“That’s exactly why we have (new commissioners) up here,” said Titsworth. “The last two years were a cleanup … of the last 10. It was pricey, but there are lawsuits now from the last 10 years. It did cost more, but a lot of our expenses were really needed.”
Holmes Beach by the numbers
2013-14 millage rate: 1.75
Proposed 2014-15 millage: 1.75
Rollback rate: 1.6352 mills
Percent of increase: 8.1
Proposed 2014-15 budget: $9,777,016
2013-14 budget: $9,003,727
Monti said that “cleaning up” from previous administrations was part of the platform he campaigned on, along with some commissioners.
“We had a very broken system when this new group came into office. All this extra we’re talking about in administration is more than necessary,” said Monti.
Zaccagnino ultimately supported the 1.75 millage rate, adding the commission could “tighten down” next year and institute a new budget process.
“There definitely needs to be a change in the process. That’s how we got into comments on the amount of money in the reserves. It’s left to the mayor’s discretion,” he said.
Holmes Beach creates its budget by having each department head and commissioner meet individually with the mayor and the treasurer. The mayor and the treasurer assemble the final draft, which goes before the commission for approval.
Commissioner Marvin Grossman said he wanted to hear more from residents during the budget process.
Kihm raised concerns during the hearing about the amount of money placed into the city’s reserves. He said it was the single biggest line item at $2.4 million. He asked who decides the amount that goes into the reserves and what is the standard amount .
Monti called the reserve account a “moving target,” because no one can predict how much money would be needed if a disaster hit.
Commissioners directed human resource analyst Mary Buonagura to research to what other cites keep in reserve, and what may be needed in the event of a disaster.
Also during the meeting, commissioners discussed the “snowball effect” of promotions by the Manatee County Tourist Development Council.
“The problem with the bed tax is it can’t be spent on a lot of the things more tourists are doing to our city. It can only be spent on bringing more tourists,” said Titsworth.
“That’s exactly what I’ve been professing all along. Don’t put it on the backs of the citizens, but on the visitors,” Monti said. He added that he believes the city could raise $1 million with paid parking.
Grossman said the county takes the majority of the total ad valorem revenues, and “if we really wanted to complain, we should go down to the county.”
Commissioners voted 4-1 to approve both ordinances — for the 1.75 millage rate and the budget. Peelen voted no on both motions.
The final reading of the millage and budget ordinances will be at 6 p.m. Wednesday, Sept. 24, at city hall, 5801 Marina Drive.
You are right. Go down to Bay Front Park, Coquina Beach, or Holmes Beach during the weekend. Most of them don’t even come from this count.
If the city wants to fight the county I’m all for it, tell me where and when to show up. As a city resident for many years I have felt the county gets the best out of the tax deal. The city residents get killed on taxes and then have to deal with the over crowded city, drunk and unruly visitors for only the county to gain on the bed tax, charge the highest property taxes around and not help the city at all.