In response to a projected $350,000 budget shortfall attributed to damage from hurricanes Helene and Milton, Bradenton Beach officials are considering a range of new and increased fees.
City treasurer Shayne Thompson told commissioners July 10 that the city is facing a 14% drop in ad valorem tax revenue due to a state statute that allows property tax exemptions when homes are uninhabitable for more than 30 days following a disaster.
“Putting a dollar figure on that, that’s about $350,000, give or take, wherever that final number lands for property values,” Thompson said.
To address the shortfall, Thompson proposed adjustments to transient lodging establishment license fees, which apply to short-term vacation rentals.
“What we’re proposing is we’ll leave the same fee structure — $150 a year — in place for a home that has up to four occupants. Each occupant above the four would be $100 per occupant,” Thompson said.
The plan is designed to shift the financial burden toward larger, high-occupancy rentals while protecting smaller, “mom and pop” operated properties.
“I hate to use the term ‘party house,’ but the ones that have the largest occupancy that are causing the most burden on infrastructure and staff and what have you,” Thompson said.
Of the city’s 561 licensed rentals, 192 — roughly a third — house four or fewer occupants and would see no change with an adjusted fee structure. However, with the average occupancy at seven, most rentals would see their license fees increase to $450 annually.
“In the opinion of staff, we don’t feel we’re burdening an investor — if you’re renting your property for $11,000 a week … $400 or $600 in the course of a year, can it turn you from renting it? I’d argue no,” said Thompson.
Thompson also recommended several other revenue-generating measures, including:
- Raising parking fines from $75 to $100.
- Increasing planning and building department fees by 30%–35%, as well as creating a new progressively increasing “stop work” penalty.
- Raising the business tax license fee by 5%.
Thompson said such changes balance the proposed budget and restore city reserves depleted by hurricane impacts.
“The city has to have a balanced budget by statute,” he said. “And without raising taxes … this makes up that shortfall and also puts about $300,000 into reserves for next year.”
Thompson said the figures used to develop the recommendations for commissioners were based partly on existing data, such as the 2.3329 millage rate for the current year and projected ad valorem revenues.
He emphasized that the expected revenue could still change and results could vary depending on commission decisions.
Commissioner Ralph Cole supported the strategy but encouraged the city to also seek additional funding from Manatee County to help cover policing costs driven by tourism.
Mayor John Chappie echoed Cole’s concerns and criticized a state law prohibiting the use of tourist development tax dollars for law enforcement.
“That is outrageous … .It’s logical to use those dollars for law enforcement in a tourist community,” the mayor said.
Commissioner Jan Vosburgh motioned to direct staff to incorporate the proposed fee changes into the proposed 2025-26 budget. Commissioner Debbie Scaccianoce seconded the motion, which passed 5-0.
The next city commission meeting was set for 9 a.m., Tuesday, July 15, at city hall, 107 Gulf Drive N.
About the budget process
Bradenton Beach’s commission and staff will work on a draft budget and adopt a maximum millage this summer.
Two hearings will be held to adopt a budget in September.
The new fiscal year for the city will begin on Oct. 1.
Gee, where is all that koombayah about consolidating services to save the taxpayers not only money but to improve services?