HOLMES BEACH – It took a little while to work out, but commissioners and city staff finally have a budget and a millage rate that they can agree on.
Commissioners voted unanimously to approve the proposed millage rate and the proposed budget, both of which underwent some changes since they were last discussed during budget workshops.
One major change is that instead of increasing the millage rate, it will remain the same at 2.25 mills for the upcoming 2020-21 fiscal year, which begins Oct. 1. The millage rate is the amount charged in ad valorem property taxes per $1,000 of the taxable value of the property. Though the millage rate remains the same, due to property value increases it represents a 4.61% increase in rates over the previous year. The rollback rate is 2.1641 mills. The rollback rate is the millage rate that would bring in the same amount of tax revenue for the city as the previous fiscal year.
The proposed budget for the city is $17,879,270 including $8,492,673 in carryovers and reserves. City treasurer Lori Hill plans for a break-even budget. During the Sept. 10 meeting, Hill told commissioners that some expenses, such as new computers and phones for commissioners, had been removed from the budget and pushed to future fiscal years.
She added that some revenue sources, including the fifth cent gas tax, half-cent discretionary tax and FEMA monies expected by the city, had increased since the previous hearing. Total funds from the fifth cent gas tax are estimated at $70,225 with the half-cent discretionary tax coming in at $614,171. The increases amounted to about $85,000 over the previously anticipated amount of state funding, giving the city a planned $803,160.
Local revenues, Hill said, are planned to bring in about $27,000 less than previously estimated, bringing that number to $8,583,437, including the property taxes paid by Holmes Beach property owners.
While it sounds primarily like good news, Hill said that year over year, last fiscal year as compared to the coming one, the city is poised to lose about $125,000 in state revenue and about $145,000 from local revenue sources. She did note that there is an approximately $100,000 increase in estimated stormwater revenue due to FEMA funding. Locally, the city-assessed stormwater fee is estimated to bring in $423,132 in additional funding over the previous year, a total of $1,391,554. Hill said that the city also is poised to receive $500,000 in grant funding for stormwater improvement projects.
She estimates the city will have $4.7 mil in rollover cash at the Sept. 30 end of the fiscal year. This will leave the city with an unrestricted reserve amount of 24.69% of the city’s total budget, meeting the Florida League of Cities’ suggested cash reserve amount to fund ongoing operational costs.
“In the eight years I’ve been here, this is the lowest year-over-year increase in expenses we have had,” Hill said. She estimates the city’s expenditures have increased by about 3% from the 2019-20 fiscal year.
The budget for mayor and commission was reduced to $200,403. Commissioner Jim Kihm, who had previously offered to give up his stipend if it put the city in a better financial position, said he had requested that Hill reinstate his salary since the city’s financial needs were able to be met without increasing the millage rate. Commissioner Kim Rash had also made the offer to forgo his salary in the best interests of the city but since he is up for re-election in November, only Kihm’s salary had been removed from the budget.
The general government budget topped out at $1,783,926 with no major changes from the previously proposed budget.
The code compliance budget came in at $590,666 including increases in the budget for special magistrate hearings and $12,000 for special magistrate hearing engineering if needed.
The budget for the Holmes Beach Police Department topped out at $3,616,206, an increase of about $45,000 due to previously unanticipated increases in insurance costs and $35,000 for the purchase of body cameras for officers.
Public works showed increases in that department’s budget, which comes in at $1,971,893, due to funding for some projects being moved into that department, including the reserve funding from the Hagen Foundation for lighting the shuffleboard and bocce ball courts, Hill said.
The building department’s budget came in at $866,406, including an increase for additional staff training to reduce outsourcing.
Commissioners thanked Hill and the city staff for working to find a way to meet the city’s needs without increasing the millage rate.
“I think it’s a very fair budget,” Commissioner Terry Schaefer said.
“This is a very difficult budget year for the city,” Commissioner Jim Kihm said. “I think it’s a good budget and one that I can support.”
Commissioners will host a second public hearing and final vote for the millage rate and budget on Tuesday, Sept. 22 at 6 p.m.
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