Holmes Beach citizens expressed concerns Sept. 10 during the city’s first public hearing on the 2015-16 budget.
Some citizens claimed their city taxes were increasing as much as 40 percent, leaving city leaders concerned about the real impact of raising the millage rate from 1.75 mills to 2.25 mills.
The millage rate is the amount multiplied by $1 for every $1,000 of assessed property value. The rollback rate — 1.6158 — is the rate that would produce the same revenue as the current year.
The proposed rate takes into account an 8.3054 percent increase in property assessments.
The increased millage rate of 2.25 mills amounts to a 28.5714 percent increase in revenue and spending for the city and a tax increase for property owners.
For a property with a taxable value of $500,000, at the rollback rate, the city would receive $875. At the proposed 2.25 mills, the city would receive $1,125 in taxes for the 2015-16 fiscal year, which begins Oct. 1.
The rate hike is proposed to help fill a general revenue deficit — added spending — of $651,458.
During the Sept. 10 hearing, Commissioner Jean Peelen asked city treasurer Lori Hill to prepare a financial comparison of millage rates for the Sept. 22 final budget hearing.
Commissioners considered pulling funds from the reserves to help alleviate the rising cost for property owners. However, the amount of money commissioners could allocate to help close the revenue gap would be a one-time contribution that could not be repeated in subsequent years.
It also would mean little to no difference in taxes to citizens. According to Hill, adding $200,000-300,000 from the emergency reserves to the spending column would only reduce the burden to taxpayers by a few hundredths of a point, not enough to greatly reduce the amount due by individual taxpayers.
The trim notices property owners received early in September reflect the maximum rate set by commissioners — the 2.3191 millage rate. When taxpayers receive their final tax bills, Hill says there should be a decrease due to the application of 2.25 mills, as recommended by Mayor Bob Johnson.
However, the final budget has yet to be approved.
The final budget hearing and vote on the budget ordinance will be at 6 p.m. Thursday, Sept. 24, at city hall, 5801 Marina Drive, Holmes Beach.