Unknowns cloud view of Longboat budget for 2026 and beyond

Building a 2026 budget between what’s already happened and what’s still to come, the Longboat Key Town Commission is proceeding cautiously with several fiscal unknowns on the horizon.

On Friday, during their final scheduled meeting before their summer hiatus, commissioners are expected to set the 2026 budget’s not-to-exceed millage rate, based on what they do know. Property valuations are up, based on preliminary figures supplied by county tax assessors. Final numbers are expected by July 1, but they typically don’t vary significantly. In early conversations, the town has said a reduction in millage could take place alongside higher property values.

One of the big unknowns over the next 12 months, though, is the state of property-tax reform in Florida. Gov. Ron DeSantis pushed last session for relief for property owners in the form of higher exemptions, rebates and more.

None of that passed, but a $1 million study of the issue in Florida did find its way into the state’s $115 billion spending plan, and supporters of the issue vowed to return with a renewed effort in 2026 — an election year. DeSantis has said property taxes, on which Longboat Key and other cities and counties rely for general revenue, is like “paying rent to the government.’’

According to an amendment added to the state’s tax package, the study would “analyze the potential impact of eliminating or significantly reducing ad valorem assessments on homestead property and provide policy options for mitigating negative fiscal consequences.’’

As the town began making budget decisions this spring and summer, projections provided by Finance Director Sue Smith showed revenue in the 2026 budget would rise 4.8% (with the current millage rate of 1.96 per $1,000 of value) and operating expenses would rise 4.6%.

“I do warn that we do need to be ready for potential decreases by July 1, you never know,’’ Smith said. “The July 1 certified values could come in less, they could come in more.’’

She added St. Regis property values are new to the tax rolls this year. “They’re a corporation, so you never know, they might go to the Value Adjustment Board. It’s their first tax bill here, so there’s a possibility they might fight some of the numbers they are seeing.’’

Smith said she hadn’t yet seen assessed values of St. Regis property broken out, but much of the town’s half-billion dollar new construction values were in Sarasota County. “Most of that is St. Regis, I would say,’’ she said.

Adding to some of the caution are potential appeals by individual property to the Value Adjustment Board, based on hurricane damage. Homes still standing at the end of 2024 but demolished in early 2025 could be assessed based on their usefulness. Town Commissioner BJ Bishop said that issue bears watching for value adjustments, applications for which are due 25 days after county Truth in Millage statements are sent in August.

“I started pulling up individual properties and when I noticed that properties that had been demolished post-storm, none of their values had changed, and so I talked to the county office and they said they probably would not change until the upcoming year because they couldn’t even calculate demolition because they started demolishing in November and December.’’

Bishop said that would have an impact on the next budget cycle and not so much this one.

On Aug, 1, during their summer-meeting break, town commissioners will receive a proposed budget and consider it in September in time for the town’s new fiscal year that starts Oct. 1.

“At the end of this, we’ll have one big beautiful bill … of our own,’’ Mayor Ken Schneier said.