HOLMES BEACH – A first look at the city’s proposed budget for the upcoming fiscal year shows increases in most departments, but not in the millage rate.
That doesn’t mean that city taxpayers aren’t in for a property tax increase, though.
Presenting the proposed budget to city commissioners during a July 12 work session, City Treasurer Lori Hill said that she prepared the budget keeping the same 2.25 mills rate as the current fiscal year. But due to a 17% increase in property values citywide, keeping the same millage rate means that owners can still expect to see their property taxes increase for the 2022-23 fiscal year, unless commissioners vote to decrease the millage rate.
While Mayor Judy Titsworth said she’d like to decrease the millage rate, she’s unsure if that will be possible for the coming year due to rising costs. Once city leaders have a better understanding of what funds they can expect from outside sources, she said commissioners would be able to make a more informed decision before the budget is passed prior to the Oct. 1 start of the new fiscal year.
Hill said that she expects to have more concrete numbers, instead of estimates from state and other revenue sources, by sometime in September.
Commissioners are set to discuss and adopt a maximum millage rate, the rate that they cannot exceed when determining the rate for the 2022-23 fiscal year, during a July 20 regular meeting.
Using a 2.25 mills rate, Hill’s proposed budget shows an increase of $890,358 in ad valorem tax for the city over the current year, upping the amount to an estimated $5,917,325. Hill said she also expects an increase of $555,000 in building permit fees and a $100,000 increase in vacation rental certificate revenue due to the number of units scheduled for renewal in the coming year.
With $10,139,887 in carryover and reserves, the proposed budget shows total revenue estimated at $24,935,231. Expenses are also estimated at $24,935,231, including reserves, to provide the city with a break-even budget for the year.
On the expense side, increased costs mean increased budgets for every city department excluding public works.
A modest $2,099 increase in the mayor/commission budget is planned, primarily due to rising costs. If approved, the budget will increase from $208,506 in the current fiscal year to $210,605.
The general government budget shows an increase to $1,686,174, up $71,075 from the current fiscal year. Much of the increase is due to rising costs for technological services such as email and agenda management services, along with other professional services.
The proposed budget for the Holmes Beach Police Department shows a planned increase of $891,467 to top out at $5,091,806, including grant funds and reserves for vehicle purchases. Some of the grant funds awarded to the department include $290,000 for the purchase of a police boat, $4,000 for bulletproof vests and $348,000 in planned reserve fund expenditures to help defray the $464,000 cost of purchasing eight fully equipped vehicles for the department.
The building department’s budget shows an expected increase of $174,519 to $1,319,121. Much of the planned increase in that department is in compensation and taxes for seven full-time employees including the city planner, professional services and general office supplies. Increases in salaries to accommodate another employee account for $129,039 of the planning budget increase with an additional $38,000 in professional services cost increases for employee drug testing, a consultant for CRS Max recertification and Progressive Building updates and inspections.
Despite increases in salaries, overtime, payroll taxes and professional services, the public works department’s budget shows an anticipated decrease of $36,905 from the current fiscal year to $3,920,861. The change results from the removal of American Recovery Act Program funds of $1,078,088 from the department’s financial calculations to a category of their own. Operating expenses, including street resurfacing, rebuilding trolley shelters, clean water algae removal and other items are planned to increase to $782,895, including an estimated $150,000 from excess concession funds to install lighting at trolley stops and flashing beacons at crosswalks.
The budget for the city’s code compliance department shows a $148,751 increase over the current fiscal year to $789,614, including $100,311 in employee compensation and payroll taxes to cover the cost of adding another employee. A $40,000 increase in court costs for legal services due to appeals and court recorders needed for special magistrate hearings also is planned. Department members also plan to spend $3,000 on a new noise meter and $2,500 on miscellaneous information technology purchases.
Public hearings for the proposed budget are scheduled for Sept. 15 and 27 during city commission regular meetings. Copies of the budget are available to the public in the lobby at city hall, 5701 Marina Drive, and online at the city’s website.
