A tax hike remains in the cards for Holmes Beach property owners.
City commissioners voted 3-1 July 20 to set a 2.25 maximum millage rate as the city moves forward in its budgeting process for fiscal 2022-23.
Commissioner Jayne Christenson voted “no,” citing promises made last year to lower the millage in 2022-23.
Commissioner Kim Rash was absent with excuse.
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.
That rate would amount to a tax increase for city property owners who have seen a $429,544,799 increase in total taxable property value over the past year, according to the Manatee County property appraiser.
To avoid a tax increase, the city must adopt a 1.9509 mill rollback rate, which would net the same ad valorem revenue as the current year’s budget.
Under a 1.9509 millage rate, the owner of a property appraised at $500,000 would pay $975.45 in property taxes.
City treasurer Lori Hill asked commissioners to approve the 2.25 maximum millage rate for submission to the Florida Department of Revenue.
However, she said the city may be able to lower the rate due to its reserves and $750,000 initially budgeted for a legal contingency to handle multiple Bert Harris act claims that have since been settled.
Hill added that city staff also must factor in rising costs and inflation while exploring options for lowering the tax rate.
Last year, several commissioners expressed support for lowering the millage but voted to keep the 2.25 rate from fiscal 2020-21 due to concerns that it would jeopardize $1.8 million the city received via the U.S. American Rescue Plan Act.
Christenson said this year she hoped the commission would honor its previous words and lower the rate.
“We promised that we would lower the millage,” she said. “I would like to see us make a commitment to lowering the millage at this point and showing our residents that we actually are trying and doing everything we can to lower the millage.”
Christenson, who said she would not vote for a 2.25 millage rate, asked city staff to prepare options for lower millage rates.
Commissioner Terry Schaefer suggested following Hill’s recommendation for a 2.25 maximum millage rate but agreed they should explore lowering the rate during the budget process.
“I don’t think there’s any doubt that we all remember last year, saying ‘Hopefully next year, if we win the Bert Harris.’ Well, we won the Bert Harris and our assessed valuations have gone up appreciably,” Schaefer said.
“We’re in a better position to give it back,” Commission Chair Carol Soustek said. “But it’s too soon to say we know all these figures. … So I think it’s wise to just go ahead and bookmark it 2.25.”
“We, of course, will hopefully lower it,” she added.
Commissioner Terry Schaefer moved to approve the 2.25 max millage rate.
Commissioner Pat Morton seconded the motion, which passed.
A first reading for a final budget and millage ordinance will be at 5 p.m. Thursday, Sept. 15, at city hall, 5801 Marina Drive.
A second, final reading and vote will be at 5 p.m. Tuesday, Sept. 27.
Directions to attend the meetings via Zoom can be found on the city’s website, holmesbeachfl.org.