HOLMES BEACH – On May 26, city officials continued the stormwater fee assessment discussion that began on May 12.
No decisions have been made regarding a potential fee increase for the 2026-27 fiscal year that begins on Oct. 1. The stormwater fee discussions will continue until late July or early August.
The current stormwater fee rate is $2.95 per every 100 square feet of property, regardless of what sits on the property and how the property is used. The $2.95 fee was adopted in 2019.
During the city commission’s May 12 meeting, Public Works Director Herb Raybourn proposed increasing the annual stormwater fee by 40 cents per 100 square feet of property for the next 10 years, beginning with a 40-cent increase in the coming fiscal year.
During the May 26 meeting, Raybourn said he didn’t have a lot of new information to provide, but he referenced a memo that was previously sent to the commissioners and included in the meeting packet.
His memo addressed the diminished buying power of the $2.95 stormwater rate adopted in 2019.
“When the assessment rate was raised in 2019 to $2.95, the buying power of that assessment was approximately $860,000. Seven years later, our 2019 buying power is around $200,000 less. With the same amount of revenue that we generate, we’re essentially only able to do $660,000 worth of work. Stretching it out over a 10-year period, that’s going to continue to get worse,” Raybourn said.
Commissioner Terry Schaefer asked Raybourn when the commission needs to set the annual stormwater fee for the 2026-27 fiscal year that begins Oct. 1.
Raybourn said that the decision needs to be made in August so that information can be sent to the property appraiser’s office.
Schaefer, who was involved in the 2019 fee establishment, suggested increasing the stormwater rate by $1, $1.50 or $2 for the coming fiscal year. He said a $1 increase would generate an additional $287,000 in stormwater fee revenues. He said a $2 increase would generate an additional $574,000 and a $1.50 increase would raise an additional $430,000. Schaefer suggested the “middle ground” of a $1.50 increase as a good compromise.
Any rate increase adopted by the commission this year would remain in effect for future years, unless it is increased or decreased by the commission during a future fiscal year.
Commissioner Carol Whitmore said she wants more input from the public before deciding on a potential rate increase.
Mayor Judy Titsworth reminded the commission that the money generated by the annual stormwater fee assessments provides the matching funds that allow the city to pursue grants that often cover up to 75% of the cost of stormwater and drainage improvement projects.
She said the city owes it to the property owners to protect their homes and properties from flooding.
Schaefer said it would be “unconscionable” for the commission to do nothing this year to increase the city’s ability to address stormwater and drainage concerns.
As he did during the May 12 discussion, Commissioner Steve Oelfke said he wants vacation rentals and commercial properties to carry more financial burden than the full-time residents and the owners of second homes not used as vacation rentals.
He again mentioned the vehicle trip counts the city of Fort Lauderdale uses as part of its stormwater fee calculations. Oelfke said using trip counts results in vacation rental home owners paying higher fees than those paid by full-time residents.
Schaefer noted vacation rental owners do not receive property tax-related homestead exemptions and they are also subject to the 6% resort tax Manatee County levies on all accommodations of six months or less.
Commissioner Dan Diggins said, “We need a reality check here.”
He said a $2 per 100 square foot increase for a 5,000 square foot home would result in a property owner’s annual stormwater assessment increasing by approximately $100 per year. He said the fee for a 7,500 square foot lot would increase by about $150.
“We’re not talking a whole lot of money here,” Diggins said.
Diggins said increasing the fee by $2 per 100 square feet would provide the city with the matching funds needed to pursue another million dollars in grants.
As he did on May 12, Diggins again noted the city of Anna Maria is developing a new stormwater fee calculation methodology to be implemented in the coming fiscal year that will be based on the property’s impervious surface coverage rather than the property’s total square footage. Anna Maria is shifting away from the $4 per 100 square foot fee calculation method currently in place.
Oelfke said during last year’s stormwater fee discussions he asked for the city to revisit its stormwater fee calculation method but that has not happened.
Whitmore said she likes the idea of following Anna Maria’s lead and starting that process this year, so a new calculation method can be implemented next year. She suggested not increasing the fee this year while using the current calculation method.
Titsworth said property owners expect the city to address stormwater and drainage issues and she does not get many phone calls or emails from property owners who oppose a stormwater fee increases. She said a $100-$200 fee increase is about as much as a couple would spend for a nice dinner at a restaurant.
Commissioner Jessica Patel said she currently favors maintaining the current $2.95 fee for another year and taking the steps needed to change the calculation method for the 2027-28 fiscal year.
Holmes Beach resident and city commission candidate Mark Hebden suggested the city send a letter to property owners informing them how to calculate their stormwater fees. He said most Holmes Beach residents don’t realize that stormwater fee revenues help the city obtain grant funding. He said the city needs to explain this to the taxpayers and do a better job of communicating with them.
“Don’t rely on the citizens to come to these meetings. You need to communicate, communicate, communicate,” Hebden said.
“It has to be pared down and also simplified. People listen to this whole discussion and it’s just too much. Put out something simple that summarizes it in a way that the average person can grasp it,” Hebden said.
