HOLMES BEACH – The city of Holmes Beach’s recent request to use tourist development tax revenues to help fund a multiyear tidal check valve replacement and installation project has been delayed indefinitely.
On Aug. 17, Holmes Beach Public Works Director Herb Raybourn presented the Manatee County Tourist Development Council (TDC) with the city’s request to use $344,500 in tourist development tax revenues to cover half of the $689,000 estimated cost to install 92 flood prevention-related tidal check valves throughout the city over a five-year period. The August discussion was continued to the Oct. 12 TDC meeting.
The tourist development tax revenues that now exceed $30 million per year are generated by the 6% tax the county levies on resort, hotel and vacation rental stays of six months or less. The Manatee County Commission-controlled tourist development tax revenues have traditionally been used to directly promote tourism, or to help fund city projects and repair projects that enhance tourism on Anna Maria Island and countywide. Tourist tax revenues also subsidize the county’s Gulf Islands Ferry service. Tourist tax funding requests begin with a review conducted by the TDC members who then make a nonbinding recommendation to the county commission.
During the Oct. 12 meeting, Bradenton Area Convention and Visitors Bureau Executive Director Elliott Falcione provided an update on the county’s response to the city’s proposed use of tourist development tax revenues.
Falcione said he spoke to members of the county administration and some county commissioners about using tourist tax revenues for infrastructure projects. He also referenced a previously discussed legal memorandum the county attorney’s office issued on July 28 for discussion during the August TDC meeting. The legal memo addressed the legality of using tourist development tax revenues to help fund a city-initiated flood prevention project.
In part, the legal memo says, “Yes, if the Board of County Commissioners finds that this proposed improvement, i.e. tidal valve installation, is needed to increase tourist-related business activities in the county, the improvement has a life expectancy of five or more years, and if other specific statutory conditions are met.”
Regarding the proposed Holmes Beach tidal valve project, Falcione said, “If the board of county commissioners wanted to utilize tourism tax proceeds for such project, it would be a legal use. There are some unique steps in the process – one being an independent study would need to be commissioned and paid for by the tourism tax.”
Falcione said he was not seeking a TDC recommendation at this time and he expects the county commission to consider the expenditure of tourist tax revenues while developing the two-year county budget in early 2027.
During the August TDC meeting, it was noted that county commission approval of the Holmes Beach funding request would likely prompt infrastructure-related requests from the other municipalities in Manatee County, including Anna Maria and Bradenton Beach. It was also suggested the tidal valve installation project be an Islandwide project. It was also noted that the city of Bradenton has flooding concerns to contend with along the Manatee River.
“We all know there’s a lot of pots of money available, the tourism tax being one of them,” Falcione said during the Oct. 12 meeting. “We want to be careful and not have a fractured program where we’re doing a study for one city and then we miss the opportunity to look at the adjacent cities.”
Holmes Beach Commissioner Dan Diggins serves as a TDC member.
“I think it’s a good idea to include the other cities too,” Diggins said in response to Falcione’s update. “I have talked to the other mayors about it and they do have a need for something like this too.”
Diggins said Raybourn used to work for the RESPEC engineering firm that might be able to assist with the TDC-funded, state-mandated independent project analysis if requested by the county commission. He said he’d ask Raybourn to provide a ballpark estimate on the study costs.
Regarding the county commission’s desire to use tourist tax revenues to fund city infrastructure projects, Falcione said, “If they want me to bring this back to the TDC, then we’ll do so at that time.”
Historically, Manatee County’s tourist development tax revenues have not been used for infrastructure projects such as drainage improvements or street improvements. The county commission approved the use of tourist tax revenues to help rebuild the Anna Maria City Pier after the 2017 and 2024 hurricanes. Tourist tax revenues have also been used to help fund improvements and make hurricane-related repairs to the Bradenton Beach Pier and the floating dock next to the pier.
The Holmes Beach funding request was prompted in part by the research conducted by Holmes Beach resident and current city commission candidate Mark Hebden regarding the state regulations and restrictions that control how tourist development tax revenues are spent. Diggins then helped turn Hebden’s research into a city funding request.
According to the county’s legal memo, Florida Statutes allow no more than 70% of a proposed improvement’s total cost to be funded by tourist tax revenues. The legal memo also notes that state law mandates at least 40% of all tourist development tax revenues collected by a county government must be spent to promote tourism in that county.
Related coverage:
City seeks TDC, county support for tide valve project
