HOLMES BEACH – City commissioners have set the tentative maximum millage rate at 1.99 mills for the 2026-27 fiscal year, but their intent is to lower the millage rate to 1.9272 when the budget is presented for final adoption in September.
While participating remotely in the Tuesday, July 14, city commission work session, City Treasurer Julie Marcotte guided the mayor and commissioners through the 17-page, $17.42 million draft budget that is based on the 1.9272 millage rate.
During the regular city commission meeting later that day, with Commissioner Carol Whitmore absent and on vacation, the commissioners voted 4-0 in favor of setting the tentative millage rate at 1.99.
Commissioner Terry Schaefer said the proposed budget is based on the 1.9272 millage rate and that setting the tentative maximum millage rate simply serves as a “safety valve” that allows the city time to make any needed budget adjustments before the budget is finalized in September.
Mayor Judy Titsworth noted the commission has historically adopted the higher tentative maximum millage rate and then lowered it during final adoption. Titsworth said adopting the higher tentative rate provides the city with some financial flexibility during the final couple months of the current fiscal year that ends on Sept. 30. She said it also gives the city a little leeway in the event of a hurricane or other emergency.
Commissioners Dan Diggins, Jessica Patel and Steve Oelfke each expressed support for later lowering the millage rate to 1.9272, or lower. None of the commissioners expressed support for adopting the 1.99 millage rate in September.
The final budget and the final millage rate will be presented for final commission adoption during the Wednesday, Sept. 9, and the Tuesday, Sept. 22, public hearings that will both start at 5:01 p.m.
YOUR TAX BILL
At 1.9272 mills, a Holmes Beach property owner would pay approximately $1.93 per $1,000 of assessed taxable property value, after any applicable homestead exemptions and other tax-reducing exemptions are applied.
At that rate, the owner of a home and property with a $1 million assessed taxable value would see a $1,927 Holmes Beach property tax on their 2026 TRIM notice and property tax bill that will also include the millage-based property taxes levied by Manatee County, the school district and other taxing authorities.
The owner of a Holmes Beach home and property with a $2 million taxable value would owe approximately $3,854 in city property taxes. The owner of a home and property with a $500,000 taxable value would owe about $963 in city property taxes.
Even at the lower millage rate, many property owners will still see the city portion of their property tax bills increase due to their increased property value.
THE BUDGET
Marcotte said the total assessed value of all Holmes Beach properties increased by about $400 million compared to the current fiscal year. The city’s budgeted ad valorem tax revenues for the current fiscal year were $6.16 million. At 1.9272 mills, those ad valorem revenues are projected to increase to $6.8 million in the coming fiscal year.
The draft budget includes $1.78 million for general government personnel and operations; $1.71 million for building department personnel and operations; $3.42 million for public works department personnel and operations; $883,631 for the code compliance department personnel and operations; and $1.54 million for stormwater and drainage projects.
The city’s largest annual expense is the $5.87 million budgeted for the police department, which includes $4.66 million for personnel and $1.2 million for operating costs.
Marcotte said one expense not yet included in the budget is a $135,000 generator for the city hall building that includes the police department headquarters. The city expected to receive a $100,000 grant to cover the majority of that cost. Public Works Director Herb Raybourn said the current generator that backs up city hall, the police department and the call center was installed in 1991.
The current fiscal budget included $6.09 million in reserves. Marcotte said the reserves dipped to around $3 million during the fiscal year, before hurricane-related FEMA reimbursements brought it back to nearly $6 million.
The proposed 2026-27 fiscal year budget includes $7.81 million in reserves, including $3.4 million for contingencies and emergencies.
Titsworth said the city has or will be reimbursed for almost all of the costs the city incurred during and after the 2024 hurricanes. During the regular commission meeting later that day, she said the city had received $4.1 million in FEMA reimbursements to date, with at least another $1.4 million anticipated.
During the work session, Diggins noted the two-year vacation rental certificate fee is increasing from $545 to $782. Titsworth said the Holmes Beach fee covers a two-year period, while most other cities use one-year vacation rental registration or certification programs. She said the fee is meant to cover the city’s costs of administering and enforcing vacation rental regulations and that the fee hasn’t been raised in a long time. She said Code Compliance Chief James Thomas and Development Services Director Chad Minor recommended the increase.
Diggins also noted the rates to lease a city-owned boat slip will increase from $425 a year to $850 a year for the Sunrise area docks. The fee will increase from $600 a year to $1,200 a year for the T-end docks.
Patel noted the draft budget includes salary increases for the mayor and commissioners that were in the 20% to 30% range. Titsworth said the salary increases were set forth by a city resolution adopted by a previous commission.
When contacted later, Marcotte said the salary information listed in the draft budget was incorrect.
She said the mayor’s salary is currently $29,200 and the commissioners’ salaries are currently $8,340, for an annual total of $70,900.
She said the proposed salaries for the coming fiscal year are $29,719 for the mayor and $8,470 for each of the commissioners, for an annual total of $72,070. She said these figures will be corrected in the next draft of the budget.
