Auditors Randy Dillingham and Jeff Gerhard of CS&L CPAs reported July 15 that Bradenton Beach is financially sound, positioning the city to move forward with planning a proposed $5 million budget for fiscal year 2025-26.
Despite an 11% drop in property values after hurricanes Helene and Milton in 2024, auditors told city commissioners the city’s reserves and conservative fiscal approach helped weather the crisis.
During opening remarks in a budget workshop that followed, police Chief John Cosby, who serves as the city’s emergency manager and public works director, emphasized how crucial financial reserves were to the city’s comeback.
“At the end of some of the budgeted years, when there was money left over, instead of just rolling it back into the general fund, we’ve put it in an uncommitted reserve — and that was by far one of the smartest things we’ve ever done as a city, because we’ve been able to weather two back-to-back category 3 hurricanes within 10 days — and we’re doing really good,” Cosby said.
Commissioners voted to base the budget on a millage rate at 2.3329 mills — the current rate — for the new fiscal year.
“The decision was also made, even though we had 11% reduction in property value due to the hurricanes, that we would hold the property tax at that level and not increase it,” Cosby said.
The rollback rate — the tax rate that would generate the same amount of revenue for the city as the prior year, excluding new construction — is 2.7804.
“There was some discussion of going to the rollback rate, because we’re below the rollback rate, where we’re at,” Cosby said.
However, staff has proposed adjustments to the city’s transient public lodging establishment license fees, which apply to short-term vacation rentals, as well as other fee increases.
“The increase in the fees are spread more thoroughly through tourism and will make up what we’ve lost,” Cosby said.
The proposed general fund budget totals $5,045,506.
City treasurer Shayne Thompson, who reviewed the figures at the workshop, said projected revenue is $5,652,680, leaving funds available to help replenish reserve funds impacted by the cost of storm recovery.
The proposed budget includes targeted improvements to key public spaces.
Also, while city commissioners have backed a 5% raise for employees, they voted to postpone the addition of new staff positions in the planning and police departments until 2026-27.
Emergency management staff are due to receive a pay bump for expanded storm recovery duties and the planning department is approved to purchase $48,800 in scanning equipment to improve internal records management.
Mayor John Chappie noted that the budget process is still in early stages.
The budget will be adopted in September for a fiscal year that begins Oct. 1.
At a glance: Bradenton Beach’s budgeting
General fund
Revenues
2024-25 budget: $5,071,726
2025-26 proposed: $5,652,680
Change: +$580,954 (+11.45%)
Expenditures
2024-25 budget: $4,776,559
2025-26 proposed: $5,045,506
Change: +$268,947 (+5.63%)
Net
2024-25: $295,167
2025-26 Net: $607,174