“It’s a little different than last year,” Holmes Beach Mayor Bob Johnson said, opening the commission discussion on the city millage rate July 26.
Johnson proposed retaining a rate of 2.25 mills for the 2016-17 fiscal year, beginning Oct. 1. While the rate would stay the same as the current fiscal year, increases in property values would net the city an additional $259,292 in ad valorem revenue.
The rollback rate — the rate at which revenue would remain the same as the current year — is 2.1191 mills.
A mill is $1 for every $1,000 of taxable property value.
The rate will amount to a 6 percent tax increase for taxpayers.
Commissioner Jean Peelen said the city historically has set a maximum millage rate and then revisited it during budget discussions, when commissioners set the final millage rate. It can be lower than the tentative rate, but not higher.
“We’re diverging from traditionally what this city has done,” Peelen said.
“We’re comfortable with 2.25,” said city treasurer Lori Hill. “This is the highest it will possibly be.”
Commissioners voted unanimously for the recommended maximum millage rate of 2.25. Chair Judy Titsworth was absent.
Johnson also released a draft copy of the city’s budget proposal for the 2016-17 fiscal year.
The draft budget shows a general fund of $5,639,448, with an increase in reserve funds.
“We’re getting it back up to the level where we need to have it,” Johnson said of the city’s reserve fund.
In previous years, the city’s reserves dwindled due to increased spending without increases in revenue. While planning the 2015-16 budget, Johnson discovered the gap between revenue and spending, leading the commission to set the millage rate this year at 2.25 mills — a 28 percent tax increase for propertyowners.
The final millage rate and 2016-17 budget ordinance will be up for a commission vote and two public hearings. The first public hearing is set for 6 p.m. Tuesday, Sept. 13, and the final vote and reading of the budget ordinance is planned for 6 p.m. Tuesday, Sept. 27, at city hall. Copies of the draft budget are available to the public in the lobby at city hall, 5801 Marina Drive.
Holmes Beach 2016-17 budget
Total proposed budget expenditures: $12,291,643
Total proposed budget revenues: $12,291,643
Proposed reserve spending: $0
Approved millage rate: 2.25
Rollback rate: 2.1191
Percent of increase: 6
Total assessed property value: $1,668,097,399
2015-16 budget
Budget expenditures: $11,392,875
Budget revenues: $11,392,875
Reserve spending: $0
Millage rate: 2.25
Rollback rate: 1.6158
Assessed property value: $1,648,756,348
