Some work remains to be done on the city of Holmes Beach fiscal 2024-25 budget.
City commissioners unanimously voted July 23 to use the municipality’s current 2.05 millage rate as the maximum millage for the upcoming fiscal year, which begins Oct. 1.
Commissioner Dan Diggins was absent during the vote.
The city’s 2.05 millage rate is tied with the city of Anna Maria for the lowest on the island, but carrying it over into fiscal 2024-25 would result in a tax increase due to an 11% increase in total taxable property value over this year.
The millage 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 2.05 millage rate will pay $1,025 in property taxes.
The 2.05 millage would raise $732,937 more in ad valorem revenue than the city collected this year.
To avoid a tax increase, the city would have to adopt a 1.8489 rollback rate, which would raise the same ad valorem income as fiscal 2023-24.
The owner of a property appraised at $500,000 would pay $924.45 in taxes under the rollback rate.
Now that a maximum millage has been set, the city cannot adopt a rate higher than 2.05 for fiscal 2024-25.
City officials have expressed a desire to lower the millage rate for the upcoming fiscal year.
However, city treasurer Cindy Dunham-Tozer said some budget items still need to be determined before the municipality could determine a lower millage.
One of those items is the acquisition of a cottage at 109 48th St. that was built in 1928 and is owned by Frank Dupps.
The city hopes to move the cottage — which is set to be replaced with a new single-family home — to a city-owned lot where it could serve as an educational and historical facility.
Planning and zoning administrator Chad Minor said the city has obtained bids for the cost of moving the structure, but still needs to obtain estimates for establishing a temporary and permanent foundation.
“I think it’s going to be great,” Minor said. “Seems like a good opportunity that, boy, we should strike while the iron’s hot.”
Commissioner Greg Kerchner moved to approve the 2.05 maximum millage rate.
Commissioner Pat Morton seconded the motion, which passed.
There was no public comment.
A finalized budget will go before commissioners for a first public hearing at 5:01 p.m. Wednesday, Sept. 11, at city hall.