Holmes Beach commissioners announced July 14 a likely tax increase for property owners for the 2015-16 fiscal year.
City treasurer Lori Hill said July 22 that while taxes will increase, the increase might not be as bad as property owners think.
“It’s going to increase,” Hill said. “It’s not a lot. It’s not scary.”
Mayor Bob Johnson said during the July 14 commission meeting that he doesn’t anticipate increasing the millage rate beyond what the city needs to close revenue gaps — spending that exceeds the city’s income.
Since 2009, the city’s expenses have outweighed its incoming general fund revenue, monies used to run the city, by about $651,000 annually. As a result, the city’s reserve fund has dipped below the $1 million mark and will continue to fall if not corrected.
While commissioners agreed to give themselves the option to increase the millage rate from 1.75 mills to 2.3191 mills, Johnson believes the millage rate will be at or below 2.25 mills.
Property owners are charged millage: $1 for every $1,000 of taxable value, as a part of their property taxes. Other line items on the tax bill include Manatee County taxes, a school district tax and West Manatee Fire Rescue’s assessment.
For a property with a taxable value of $500,000, an increase to a 2.25 millage rate would mean an increase from $875 to $1,125 in city taxes.
The commission set the maximum 2015-16 millage rate July 14 and will discuss the shortfall in the budget at a meeting at 7 p.m. Tuesday, July 28.
Public comment on the city spending plan will be heard at the commission meeting set for 7 p.m. Thursday, Sept. 10, and again at the Sept. 24 meeting.
— Kristin Swain