BRADENTON BEACH – In what Mayor John Chappie characterized as a “lean working budget proposal,” with a focus toward rebuilding the city’s reserve fund, the city commission members and city staff discussed the proposed 2026-27 fiscal year budget during their July 30 work meeting.
The proposed $6.57 million budget is based on maintaining the current 2.3329 millage rate. During the work meeting, the commission voted 5-0 to set the tentative maximum millage rate at that current rate. The tentative millage rate can be lowered during the budget adoption hearings in September, but it cannot be increased. The 2026-27 fiscal year budget will take effect Oct. 1.
The budget worksheet lists $6.57 million in total anticipated general fund expenditures, and state law requires the city to adopt a balanced budget in which anticipated expenditures and revenues are the same. The budget worksheet lists $5.02 million in total projected expenses for the current fiscal year that ends on Sept. 30.
“This budget helps to maintain our high level of essential services that residents, property owners and visitors receive from our local government,” Chappie said. “We are working to rebuild our uncommitted, unassigned reserves to pre-hurricane levels.”
Chappie said due to the city’s high uncommitted reserve fund, the city did not have to borrow money or raise taxes after the 2024 hurricanes.
“That was a big part of the proposed budget, not only to maintain that high level of essential service but also to prepare for the next big storm,” he said. “We’re not there yet, and this budget reflects we have to set up funds to go back into our uncommitted reserve because we don’t want to be caught short.”
City Treasurer Shayne Thompson later told The Sun the city hopes to add $400,000 to its reserves during the coming fiscal year.
MILLAGE RATE
At 2.3329 mills, a property owner is taxed approximately $2.33 for every $1,000 of assessed taxable value after the homestead exemption given to primary residences, and any other applicable exemptions, are applied to lower the property’s taxable value. Non-homesteaded second homes, seasonal homes and vacation rental homes do not receive the tax-cutting homestead exemption.
The owner of a Bradenton Beach property with a $500,000 assessed taxable value would be taxed by the city $1,166 in the coming fiscal year. The owner of a property with a $1 million assessed taxable value would be taxed $2,333.
When speaking to The Sun, Thompson said the current millage rate generated $2.13 million in ad valorem city property tax revenues during the current fiscal year. He said the proposed 2026-27 fiscal year budget lists $2.56 million in projected city property tax revenues, an increase of approximately $430,000.
According to the maximum millage levy calculation preliminary disclosure form (DR 420) the city submitted to the county property appraiser’s office, the total taxable value of all Bradenton Beach properties is $1.09 billion. Taking into account increased property values and new homes and structures added to the city’s tax roll, the rolled-back millage rate of 1.9966 would generate the same property tax revenues during the coming fiscal year as the 2.3329 millage rate generated during the current fiscal year.
Thompson said maintaining the current millage rate would equate to a 16.8% increase over the 1.9966 rolled-back rate. He said a significant portion of the 16.8% increase is due to hurricane-damaged properties returning to their normal valuation rates after being devalued for the current tax year.
“It’s almost a break-even from when property values decreased last year,” he said.
Due to increased property values and other factors, most Bradenton Beach property owners will see their city property tax increase during the coming fiscal year, even though the millage rate is expected to remain the same.
The DR 420 form also addresses the new law created by the Florida Legislature’s recent adoption of Senate Bill 4-F and signed into law by Gov. Ron DeSantis. The property tax-related law changed the number of votes a local government needs to adopt various millage rates. According to the new state requirements listed on the DR 420 form, it would take a simple majority vote (three commission members) to adopt a millage rate at or lower than the 1.9966 rolled-back millage rate. A two-thirds vote (at least four commission members) would be required to adopt a millage rate of up to 2.1963 mills. A unanimous vote (five commission members) will be needed in September to approve maintaining the current 2.3329 millage rate.
KEY EXPENDITURES
With a projected budget of $2.2 million, the police department is the largest expenditure in the proposed budget, which is the case every year.
In regard to recent discussions about potentially unionizing the police department (an idea since abandoned), Police Chief John Cosby said, “One of the biggest changes that we saw is, after the meeting about the sheriff’s office, commissioners came to me individually and wanted to see a better pay scale for officers. In comparing some of the surrounding communities’ pay scales, what we came up with is officers who have been here seven years or less will receive a $6,000 across-the-board raise, officers in the middle tier will receive $5,000 and our most senior officer will receive $4,000.”
Cosby said this is where salaries should be for a city the size of Bradenton Beach.
“We’re never going to be where the county is. The size of the agency alone dictates that, but as far as the surrounding communities, we’re ahead of a few and only behind one. The key is we have to keep up with it every year. We have to watch what others are doing,” Cosby said.
The proposed budget lists $917,810 for the administration department that includes
the city clerk’s office and the city treasurer. The budget lists $617,435 for building and planning department expenditures, $587,307 for streets and roads and $283,188 for stormwater maintenance and general operations. Thompson later noted the projected $1 million in stormwater revenues will be used to make stormwater and drainage improvements during the coming fiscal year.
Cosby also serves as the city’s public works director. When the new fiscal year begins, Lenard Diaz will become the new police chief and Cosby will serve solely as public works director.
Cosby told the commission he wanted to add one item to the proposed $169,467 for facilities expenditures.
“We’ve been having some serious problems with the leakage with the roof at city hall,” he said. “The last time this roof was replaced was in the mid-1990s. I’d like to budget $50,000 for that.”
The first budget adoption public hearings will be held Thursday, Sept. 3, at 5:05 p.m. for the Community Redevelopment Agency (CRA) budget, and at 5:30 p.m. for the city’s general fund budget. The second and final budget hearings will be held Wednesday, Sept. 9, at 5:05 p.m. for the CRA, and at 5:30 p.m. for the general fund.
Sun reporter Joe Hendricks contributed to this story.
