HOLMES BEACH – The mayor and city commissioners are maintaining the current 1.99 millage rate rather than increasing it to the maximum 2.1812 millage rate tentatively adopted by a 3-2 vote in late July.
During the city commission’s Sept. 11 budget hearing, City Treasurer Julie Marcotte presented a revised budget that’s now based on maintaining the 1.99 millage rate. The commission adopted on first reading the millage rate and budget ordinances that will be presented for final adoption on Thursday, Sept. 25. The new fiscal year begins on Oct. 1.
The proposed $22.07 million 2025-26 budget represents a $3 million decrease from the current $25.23 million fiscal year budget.
When presenting the proposed budget in early July, Marcotte and Mayor Judy Titsworth proposed a tentative 2.1812 millage rate increase to help offset what was then expected to be an 8.33% decline in total assessed Holmes Beach property values. As the county’s property valuation process continued, the estimated total property value decrease was revised to 7.99% for the coming tax year. When property values increase and the millage rate remains the same, property taxes and the city’s property tax revenues increase; and the opposite happens if property values decrease.
Marcotte said some of the budget revisions were the result of getting more detailed revenue projections from the state and county. She said updating the employee salary schedule and employee health insurance policy selections saved an additional $51,163 and updating the city’s property and casualty insurance costs saved an additional $28,000.
The revised budget includes an additional $100,000 increase in estimated building permit fee revenues and the reallocation of $25,000 in city funds to the police department budget to help cover the cost of patrolling the county-owned beach and boat ramp. Titsworth hopes to recoup that $25,000 from the county during the new fiscal year.
The Islanders 4 Clean Water budget was trimmed by $15,000, the contingency fund was reduced by $150,000 and a $100,000 potable water project was removed from the budget.
The budget lists the mayor’s annual salary at $29,200 and the commissioners’ annual salaries at $8,340.
“With these changes, we were able to set the millage rate at 1.99 and have 25% of our unrestricted reserves that is suggested by the GFOA (Government Finance Officers Association) and auditors for our governmental needs,” Marcotte said.
When comparing the new budget to the current budget, Commission Chair Dan Diggins said the mayor and commission expenditures are decreasing by $50,000, general government expenses are decreasing by $200,000, police department expenditures are increasing by $200,000 (in part to hire an additional officer), building department expenses are increasing by $180,000 and anticipated Public Works Department expenditures are decreasing by $900,000 due to the completion of several projects.
Commissioner Steve Oelfke asked Marcotte if it’s accurate to say the city created a budget that provides a tax cut to the taxpayers. Marcotte said that is correct.
Commissioner Carol Soustek thanked the department heads and employees that eliminated or postponed some of their planned projects and expenditures.
“What that does is show the community that we understand where you’re coming from,” Soustek said in regard to potentially increasing the millage rate at a time when many property owners are still recovering from the 2024 hurricanes.
“I just want to congratulate the mayor and Julie for doing such remarkable work,” Diggins added. “It lets the community know that we understand what you’ve been through. I think it’s the right thing to do.”
“I wasn’t certain we could do this,” Commissioner Terry Schaefer said. “Getting it back to the existing millage without a loss to service is remarkable and I, too, want to compliment the mayor, our treasurer and all of the department heads.”
Participating by phone, Commissioner Carol Whitmore said, “Thank you mayor for working so hard on this. I know it wasn’t easy and I appreciate it; and so do our citizens.”
See the entire 2025-26 fiscal year budget here.
