Holmes Beach’s spending plans and ad valorem taxes could take a step back in 2025-26.
City commissioners unanimously voted Sept. 11 on motions to approve first readings for ordinances adopting a $22,075,146 budget and a 1.99 millage rate for the new fiscal year, which begins Oct. 1.
While the city commission voted in July to set the 2.1812 rollback rate as the municipality’s maximum millage for the upcoming fiscal year, the budget was prepared with the current year’s 1.99 millage rate.
The millage rate is the amount per $1,000 of property value used to calculate property taxes.
The 2.1812 rollback rate would raise $6,759,206 in the fiscal year 2025-26, the same amount of ad valorem tax revenue that the municipality collected this year.
While the city would collect the same amount in property taxes, the rollback rate for next year represents a 9.6% increase in revenue and spending over the current millage due to an 8.15% decrease in total taxable property value.
Under the 2.1812 rollback rate, the owner of a property appraised as $500,000 would pay $1,090.60 in property taxes.
At the current 1.99 millage rate, the owner of a property appraised at $500,000 pays $995 in property taxes — a tax decrease.
Maintaining that rate would raise the city $6,167,706 in ad valorem tax revenue — $592,500 less than this year.
Overall, the $22,075,146 total budget represents a more than $3 million decrease from this year’s $25,233,596 spending plan.
City treasurer Julie Marcotte presented the proposed budget and said the general government, building and police department budgets include minimal changes.
Much of the proposed budget drop can be attributed to decreases of more than $2 million in unrestricted reserves, $1,364,000 in capital outlay expenses, $687,771 in total personnel services and $437,644 in total operating expenses.
Despite the decreases, the city projects it will collect $500,000 more in building permits than it did this year and $1,267,374 in disaster reimbursement from the Federal Emergency Management Agency.
Those changes result in a projected $813,700 increase in local revenue sources over the $10,707,552 collected this year.
Commissioners complimented Marcotte, Mayor Judy Titsworth and the city’s department heads for carving out the budget in the face of spending cuts.
“The cuts that the city has done is creating a budget that is actually a tax cut to the taxpayers,” Commissioner Steve Oelfke said.
Commissioner Carol Soustek said the tax cut was a “positive move forward” for the municipality.
“It lets the community know … we understand what you’ve been through and we want to take a year off,” Commission Chair Dan Diggins said. “I just think it’s the right thing to do.”
There was no public comment.
The city commission will hold a final public hearing, second reading for the budget ordinance and vote for the budget at 5:01 p.m. Thursday, Sept. 25, at city hall, 5801 Marina Drive.