City Commission Special Meeting

1 MINUTES City of Holmes Beach City Commission Special Meeting July 25, 2025, 9:00 a.m. Patricia A. Geyer Commission Chambers 5801 Marina Drive, Holmes Beach FL 34217 Present: Commissioner Oelfke, Commissioner Schaefer, Commissioner Soustek, Commissioner Whitmore, Chair Diggins Absent: City Attorney Augello Staff Present: Mayor Titsworth, City Clerk Johnston, Chief Tokajer, Director of Development Services Minor, Public Works Director/City Engineer Kamiya _____________________________________________________________________ 1. Call to Order; Pledge of Allegiance; Moment of Silence Chair Diggins called the meeting to order at 2:00 p.m. 2. Roll Call 3. Comments by the Public Margie Motzer, 305 56th Street, said she had calculated expenditures for 165 different cities in FL that included coastal cities with similar tourism. During her review she discovered that Holmes Beach had a very high per capita rate of $8,000 to $9,000 while others were winning awards for working within their $2,000 to $3,000 per capita rate. She noted that Holmes Beach had an 18% increase between 2012-2024. Ms. Motzer felt a lot of the City's expenses and resources related to tourism. She noted that neither the City of Bradenton Beach nor the City of Anna Maria will be increasing property taxes this next year. She suggested the City implement a satisfaction survey to see how the residents feel about the millage rate. Despite property values increasing, she noted that Holmes Beach as far back as 2020 has not set the millage rate back to the rolled back rate. A quote when the rate goes up was read into the record. Nancy Deal, 203 56th Street, referenced quotes from the Island newspapers on what the City of Bradenton Beach has been doing regarding their budget. In her opinion, the millage rate and Stormwater fees are tied to the budget, and she felt looking at what other cities do was needed. She pointed out that the City of Bradenton Beach, to not increase taxes, were delaying adding projects and personnel. She said personally after the 2024 storms, she is having to cut back. Ms. Deal referred to a memo sent from Mayor Titsworth to the City Commission referencing the City's reserves. She noted that the City of Bradenton Beach has extra reserve funds. She questioned how much of the City's reserves had been impacted, if they were for emergency situations only, and what they will be utilized for.

2 Mayor Titsworth stated she likes to leave a buffer when setting the maximum millage. Stormwater as an example is part of the budget and the experts are making the decision on how to manage everything. Ms. Deal reminded that Governor DeSantis is requesting a Department of Government Efficiency (DOGE) report in different locations in Manatee County. The goal is to ask local governments if they are spending more than they should be. Governor DeSantis would also like to remove property taxes altogether. She encouraged the City Commission to listen to what the residents say about the Island right now and felt that residents are leaving Holmes Beach because of the cost. Renee Ferguson, 210 77th Street, thanked Chair Diggins for holding his recent Town Hall meeting and said many became more aware of what's going on. She hopes there will be more Town Hall meetings held on a frequent basis. Ms. Ferguson referred to the millage rate stating it does not seem appropriate to increase it right now. There are a lot of mega mansions and an empty lot costs from $2 to $6 million. She feels the decrease in valuation will be made up when those homes are rented. She further stated that residents are suffering having to go in pensions and savings to cover the Hurricane damage that their insurance did not cover. Winn Bishop, 524 69th St, noted the City Commission have stated they have gone to the limit on what will be spent. He asked what that comment was based on. He also asked what the City's reserves were being utilized for. He asked why taxes were being raised and noted that some people in the City can afford an increase while others cannot. He felt the City needs to use fiscal responsibility and consider the citizens and what they want. Dorene Collier, 226 84th Street, said she understands the budget needs increased and noted her home was also affected by the Hurricanes. Commissioner Schaefer stated that there's a misconception that an increase in millage rate would cause her taxes to go up, however, it will stay the same with no increase expected. Mayor Titsworth stated that the City has two months until the final budget adoption in September. She stated that every line item in every budget will continue to be reviewed for savings so long as there is no decrease in services. She pointed out that the public would not appreciate a decrease in services. Ms. Collier, 226 84th Street, asked how monies were allocated and if they were being spent appropriately. She felt the Stormwater improvements since 2020-2021 have made her property flood even more. She also asked how the decisions relating to drainage were being handled. She understood the City would be receiving additional funding but questioned who was being hired and doing the job that needs to be done. Rita Robinette,513 58th Street, read the definition of millage into the public record. Juliane Bibik, 7 Palm Harbor Drive, said she recently came to live on the Island and that the recent Town Hall meeting was informative for a new resident. She had heard a lot about Holmes Beach and the working class on Island and the need for more residents living here. Ms. Bibik stated that the proposed Budget was not attainable because of the property taxes. She provided examples of the increase in homes and the home and flood insurance and how everything has increased since COVID. She also spoke against the City spending the entire budgeted amounts and was not what the City should do with the citizens' dollars. She felt if the taxes are increased it will cause residents to leave, there will be more rentals, more business closures, and more investors. Ms. Bibik referred to the three Island Cities and questioned why each City had different consultants. In her opinion, there are other ways to reduce the budget without raising tax dollars.

3 She said the public does not want to wait until September to know if the millage will remain the same and not go down. She did not want to come back then and face the same situation. Al Robinson, 3109 Ave F, said he had remodeled over 20 properties in Holmes Beach and was a previous Holmes Beach City Commissioner. Mr. Robinson stated in 2006 the Police Department had 10 employees and asked what the number of employees is now. There was also no Stormwater budget. Living on 6th Avenue behind Publix, Mr. Robinson said he had been here for 33 years and owned his property for 12 years and that no property flooded over those years until last year. He stated that millions of dollars have been spent on his street yet when it rained the day prior, they had the same problem as occurred 33 years ago. Mr. Robinson asked Commissioner Whitmore how many employees the City had when she was Mayor and how many employees there are now. Commissioner Whitmore reported there were thirty-five. Mayor Titsworth invited Mr. Robinson to meet with her at any time. Chair Diggins agreed and invited him to meet with him. City Commission Discussion Commissioner Whitmore stated she was conservative when it comes to budgets, wanted to keep the millage the same, and had found some shortfalls. She pointed out that Manatee County and the City of Bradenton Beach were both lowering their taxes for 2025-2026 and will be cutting back on services. She presented the following:  The Police Department was not listed in the budget. Chief Tokajer had said he was promised an additional officer last year, but it had not been reflected in the most recent budget. The City does not have a two-year budget but had verbally promised an additional position in the Police Department. However, there is nothing in writing to support that addition.  Six positions were listed in the General Government, however, seven were now listed. Commissioner Whitmore was informed there are currently seven employees, and the budget reflects all their salary and benefits.  Felt the City must live within its means.  Commissioner Whitmore noted this past week the Governor called out Hillsborough and Manatee Counties, which include all the Cities, for their first DOGE audit.  She stated that Bradenton Beach's population values decreased by 11%, they have 31% unrestricted reserves and were not raising their millage.  Holmes Beach property values had decreased by 8.33% and had 19.87% in unrestricted reserves.  Manatee County property values were down by 10% and they have a $2.5 billion budget.  Property values are currently down so the City's spending needs to go down until the 2026-2027 budget year is reviewed and there is an increase in values.  That's dependent on whether there will be any hurricanes this year.  Commissioner Whitmore did not believe the City's millage rate would be lowered to 1.99 mills. She recalled when Manatee County was forced to lay off over 300 people and the budget dropped.

4 Suggestions presented by Commissioner Whitmore for addressing the $590,000 Shortfall included:  Remove the $190,000 from the newly named 'meter' item that was previously referred to at their Budget Worksession as 'parking meters'.  Take $400,000 of the $814,000 from the FL Resilient Gulf Dr. for the J & K project and spend $414,000 for 2025-2026, and $400,000 for the 2026-2027 Budget.  Do not add any additional positions that were not listed in last year's or the current year's budget that were not in written form.  Asked how the City had been spending the $860,000 Stormwater Assessment fee amount.  Felt the City's Unrestricted Reserves were low compared to other jurisdictions.  Recommended keeping the budget at 1.99 mills and not increasing the Stormwater Assessment fee. 4. New Business 4.a Authorize the Mayor to Sign and Submit Forms DR-420 and DR-420 MM-P to the Manatee County Appraisers Office - Establishing a Maximum Millage rate that will be assessed for the 2025-2026 fiscal year Treasurer Marcotte read a prepared presentation - Attached. Mayor Titsworth explained that although the Stormwater system only had various repairs done more were needed. Details relating to potential FEMA and Insurance reimbursement followed. She stressed the need for the City to build up its reserves, especially with the cuts federally with FEMA. There have been substantial rains over the last four years, State and Federal Appropriations were all denied, and the Governor is talking about no longer having State property taxes. She stated that the distribution of the Tourist Tax money needs to be changed so the City can potentially get some of those funds. Commissioner Whitmore stated when she was Mayor there were no Engineers for the City and that the swale system was utilized. No Stormwater Assessment Fees were charged. Commissioner Schaefer announced that in his case the Holmes Beach portion of his total tax bill was only 13%. He pointed out that the properties deemed substantially damaged and were deemed uninhabitable have been reduced to less than half of last year. Some have still not reoccupied their homes. Those property owners will receive a decrease in taxes this year. Mayor Titsworth referred to her email sent out that explained the City does not yet have all the revenues and expenses yet. The Maximum Millage is set to allow for a buffer since the City cannot approve a budget over that amount. In addition, this is currently hurricane season. She noted that social media was stating that the City's spending was out of control and that there are too many employees. She noted the City Treasurer has worked with all departments, the projected millage can be set in case there are additional expenses, and staff will continue adjusting other line items. Explanation followed relating to the revenue estimates, that County payments are received monthly, auditing procedures, and the revenues and assessments increasing over the past three years. Also, property assessments have now decreased by 8.33%.

5 Commissioner Soustek stated it's also a question when estimating taxes and sales taxes for the budget and she always likes to see a buffer. She stated that the City Commission can always reduce the millage but cannot increase it after the maximum millage is adopted. She prefers waiting until the revenue estimates are received and that a millage buffer be adopted that afternoon. Moved by Commissioner Schaefer Seconded by Commissioner Soustek Approved setting the maximum millage at 2.1812 mills. Motion carried on a vote of 3 to 2 with Commissioner Whitmore and Chair Diggins voting No. Motion Approved 4.b Set Millage and Budget Public Hearing Dates and Times The First Public Hearing is scheduled for Thursday, September 11, 2025, at 5:01 p.m. The Second/Final Public Hearing is scheduled for Thursday, September 11, 2025, at 5:01 p.m. Commissioner Whitmore announced that she will be out of town for the September 25, 2025, meeting attending a Chamber event. 5. Questions and Comments 5.a Questions and Comments from Mayor and City Commission Commissioner Whitmore thanked Chair Diggins for his vote in opposition to the 2.1812 mills. 5.b Questions and Comments from City Attorney None. 5.c Comments from Staff None. 5.d Questions and Comments from the Public and Press None. 6. Adjournment Chair Diggins adjourned the meeting at 10:11 a.m. _________________________ City Clerk _________________________ Minutes Approved