Revenue and spending for Holmes Beach are tentatively set to grow by almost $3 million.
City treasurer Lori Hill July 12 presented a tentative budget for fiscal 2022-23, which begins Oct. 1, showing a projected $2,708,559 increase over the current year’s adopted budget of $22,226,672 — a 12% increase.
Much of that growth on the revenue side of things can be found in a projected $2,102,204 increase of revenue from local sources, including ad valorem taxes, building permit fees and improvement grants.
Hill said that while a millage rate could not yet be determined, the city projects a $890,358 increase — or 17% over this year’s budgeted $5,026,967 — in ad valorem revenue if it keeps the 2.25 millage rate.
The millage rate is the amount per $1,000 of property value used to calculate property taxes. The owner of a property appraised at $500,000 with a 2.25 millage rate would pay $1,125 in property taxes.
As a percentage, it amounts to a tax hike.
To avoid a tax increase, the city must adopt a rollback rate — which has yet to be determined — which would net the same ad valorem income as the current budget.
The taxable property value in the city increased by $429,544,799 over the past year, according to the Manatee County property appraiser.
Hill said the city might be able to lower the millage.
Growth also led the city to project a $555,000 increase in revenue from building permit fees due to increasing construction throughout the city, according to Hill.
The city also received a $268,905 grant from the Florida Department of Law Enforcement to replace the police department’s radios, as well as $84,000 more from the West Coast Inland Navigational District to fund a new police boat to patrol local waters.
On the flip side of the coin, while some of the projected increase in expenses can be attributed to rising personnel costs, much of the rest is attributed to a handful of improvement projects across the municipality.
The city’s personnel expenses, which include salaries, benefits and retirement contributions, are projected to increase by $639,221 next year as the city looks to add staff to the public works, code enforcement and building departments.
The police department also projects spending $406,000 more to purchase eight new patrol vehicles, and $239,300 more for other new equipment, such as Tasers and the aforementioned radios funded via an FDLE grant.
Another $100,000 was tentatively budgeted for clean water/algae removal efforts recommended by the city’s clean water committee, $695,000 for road materials and street resurfacing, $180,000 to fund the “city center” improvement project and $388,000 to rebuild and replace seven trolley shelters.
The city also tentatively budgeted $107,000 to fund a consultant to assist in the planning commission’s review of the land development code, which is projected to take two years to complete, according to Hill.
The commission will meet to set a maximum millage rate at 5 p.m. Wednesday, July 20, at city hall, 5801 Marina Drive.
A first reading for a final budget will be at 5 p.m. Thursday, Sept. 15. A second hearing and final reading on the budget ordinance will be at 5 p.m. Tuesday, Sept. 27.
Directions to attend via Zoom are at holmesbeachfl.org.
By the numbers…
2022-23 proposed budget
Total expenditures/revenues: $24,935,231
Ad valorem revenue: $5,917,325
Operating revenue: $13,717,256
Carryovers/reserves: $10,139,887
Personnel expenditures: $6,702,791
Operating expenses: $5,228,224
Capital outlay expenditures: $5,859,496
Unassigned/unrestricted funds: $7,144,717
Total taxable property value: $2,783,933,890
2021-22 adopted budget
Total expenditures/revenues: $22,226,672
Ad valorem revenue: $5,026,967
Operating revenue: $11,547,888
Carryovers/reserves: $9,600,697
Personnel expenditures: $6,063,570
Operating expenses: $4,223,662
Capital outlay expenditures: $4,594,979
Unassigned/unrestricted funds: $7,195,458
Total taxable property value: $2,354,389,091
Budget hearing dates:
First hearing: 5 p.m. Thursday, Sept. 15.
Final hearing: 5 p.m. Tuesday, Sept. 27.
— Ryan Paice
