HB passes first budget reading, 6 percent tax increase

Holmes Beach is one step closer to approving a tax increase and increased spending for the 2016-17 fiscal year.

Commissioners voted unanimously Sept. 13 to approve a 6 percent tax increase for property owners beginning Oct. 1.

“We sat and each of us studied this budget,” Commissioner Jean Peelen said. “A lot of work was put into this behind the scenes.”

“My guidance in developing this budget was that the rules haven’t changed,” Mayor Bob Johnson said. “We do what we must do, not everything we want to do.”

The 2.25 millage rate will bring in an additional $235,436 in ad valorem revenue over the rollback rate of 2.1191, amounting to a 6 percent increase in property taxes.

The rollback rate is the millage rate that would bring in the same amount in ad valorem taxes as the previous year.

Millage is $1 for every $1,000 of taxable property value.

The city also is estimating revenue of $187,000 from its newly launched vacation rental certificate program, requiring owners or agents of short-term rental properties to pay for a certificate in addition to a business-tax receipt — a form of city license — to rent properties for less than 30 days.

Johnson reminded commissioners that revenue from the certificate program could only be expected every two years, as the certificates expire.

The only point of contention between residents and commissioners was a line item in the budget to fund $22,000 for the Center of Anna Maria Island.

Holmes Beach resident Jim Kihm expressed his displeasure that the funds are still included in the budget.

“Removing those funds from the budget is an opportunity to decrease overall spending for the city,” he said.

Jeff Nash, an Anna Maria resident who spoke during public comment, also said he would like to see tax dollars distributed somewhere other than to the center. “I feel like it’s doing OK on its own,” he said.

City treasurer Lori Hill changed the terms for the line item at the commission’s request to require commission approval before any funds could be distributed or allocated to a community organization, including the center.

“Not a penny will be spent unless it’s authorized,” Peelen said.

Commissioners agreed to move the discussion on the center donation to another agenda.

Commissioners also expressed displeasure at receiving only $10,000 from Manatee County to fund the police department’s patrols at the Manatee Public Beach, the county-run beach at 4000 Gulf Drive.

Johnson said he would meet with the county in October to discuss future funding, including raising the cost paid by the county for patrols at the beach.

“We will be working on that with the county through this year,” he said.

Copies of the budget are available to the public in the lobby at city hall.

Commissioners will hold a final public hearing and vote on the ordinances establishing the millage and the budget at 6 p.m. Tuesday, Sept. 27, at city hall, 5801 Marina Drive.

 

Holmes Beach mayor to get pay raise

Running for mayor of Holmes Beach just became more palatable.

Mayor Bob Johnson will benefit from the decision, although it won’t go into effect until after the November municipal election.

Commissioners voted unanimously Sept. 13 on raising the mayor’s stipend from $1,000 to $2,000 a month.

The city’s charter prohibits an elected official’s compensation from increasing during his or her term in office. Johnson’s first term in office expires with the November election and, being unopposed,  the raise will become effective during his second term.

“It’s good that people are realizing the complexity of managing city services in Holmes Beach in this day and age,” Johnson said. “Being the mayor is a full-time job, not like the part-time, phone-it-in efforts of the past.”

Commissioner Jean Peelen, who broached the subject during the Aug. 23 meeting, said she feels the mayor’s stipend should reflect the amount of time spent working on the job.

“I’m not doing this for Mayor Johnson, I’m doing it to recognize the importance of the position,” Peelen said. “Beginning about four years ago, this city became a full-time job.”

“Being a commissioner isn’t a part-time job either,” Commissioner Carol Soustek said. “No position at city hall is an easy, part-time task.”

“We had to hire more people because of the demand on the city,” she said.

Soustek said she would like to see a review completed of all city positions and see if a pay raise could be possible in the future.

Commissioners will meet at 6 p.m. Tuesday, Sept. 27, for a final budget hearing at city hall, 5801 Marina Drive, followed by a commission meeting and workshop.