HOLMES BEACH – Due to an unexpected increase in the total values of all Holmes Beach properties, the property tax-related millage rate will be lower than originally expected for the new 2026-27 fiscal year that begins Oct. 1.
In mid-July, the city commission set the tentative maximum millage rate at 1.99 mills for the coming fiscal year with the stated intent to later lower the millage rate to 1.9272 before the budget was presented for adoption during two public hearings in September.
The mayor and city commission held their first budget hearing on Wednesday, Sept. 9. Participating remotely via Zoom, City Treasurer Julie Marcotte presented the revised budget on first reading. The final budget hearing will be held on Sept. 22 at 5 p.m.
The 2026-27 budget that was adopted on first reading lists $17.9 million in projected revenues and a total expenditure budget of $16.6 million in projected expenditures.
When discussing the revisions made since July, Marcotte said, “I received an e-mail from Alan Stearns at the property appraiser’s office. He informed me that the taxable value increased from $3,717,564,183 to $3,796,836,271, a net increase of $79,272,088,” Marcotte said. “This created an additional $152,000 in revenue. Due to the additional revenue, we have reduced the millage rate from the original proposed 1.9272 mills to 1.874 mills, a reduction of 0.0532 mills to benefit our residents.”
At that millage rate, property owners will pay approximately $1.87 for every $1,000 of assessed taxable property value after homestead exemptions and other tax-reducing exemptions are factored in. The 1.874 millage rate will generate $6.76 million in ad valorem property tax revenues for the city.
The budget leaves the city with approximately $7.7 million in reserves.
Marcotte also addressed commissioners’ previously stated concerns regarding the salary increases proposed for the mayor and commission according to a city resolution adopted in the past by a previous commission.
“Executive salaries were reduced by $13,889 to bring that line item to the correct value,” she said.
Vacation rental certificate revenue is expected to jump to $610,740, up from $426,735. FEMA disaster reimbursement is budgeted at $1.45 million. Building permits are projected to generate $1.83 million.
The police department budget totals $5.86 million. The budget includes $135,000 for a new city hall/police department generator.
Public works spending totals $3.43 million, plus an additional $75,000 in reserves. New capital projects include a $46,000 flood barrier system. Road maintenance and resurfacing is budgeted at $279,901.
Planned storm water projects total $1.77 million, including $771,700 for professional services, $445,600 for maintenance and $555,000 for construction. Projects include flood risk mitigation work on multiple streets, a watershed master plan and stormwater improvements in the southwest quadrant.
Commissioner Jessica Patel questioned the need to spend $15,000 or more for the stickers, calendars, T-shirts and other promotional items for the city’s Islanders 4 Clean Water initiative, and she said she’d like to see that number lowered next year.
