Town manager-recommended budget includes property tax rate hike

The Longboat Key Town Commission, in a 5-1 vote, decided in late June to set a higher maximum property tax rate, and the tentative budget published Friday was formed with that higher tax rate in mind.

The $25.2 million general fund budget is a 4% increase from the 2026 adopted budget. Ad valorem property taxes make up $19.1 million in revenue, about 76% of all revenues.

On page 33 of the 334-page recommended budget, the executive overview states increasing the millage from 1.9600 to 1.9999 is recommended to “keep pace with inflation, address the needs of the community, and help restore some of the fund balance reserves used by Hurricanes Helene and Milton recovery efforts.”

The lone vote against increasing the maximum property tax millage from 1.960 to 1.999 was Commissioner Gary Coffin, who made the case for a larger increase to help replenish the fund balance, prepare for emergencies, and maintain aging systems. 

Town leaders emphasized at the June meeting the millage was not finalized, and all that was being voted on was the legally allowed maximum rate. 

Finance Director Susan Smith said it’s common for the maximum rate to be the final tax rate though. 

“Historically, that has been the case for Longboat Key. Whatever the maximum millage has been, that’s what we used for the budget,” Smith said. “But with that being said, they don’t have to adopt the 1.999.”

The 0.039 millage hike is expected to increase revenue by $381,622. Property values have increased 2.6% island-wide with a total value of $9.94 billion. Manatee County values rebounded after a drop in 2025 partially caused by a property appraiser mistake. Ad valorem taxes are expected to increase $799,338 when the increased property values and millage are combined, according to the tentative budget.

If commissioners approve of the 1.999 millage at its Sept. 14 and Sept. 28 meetings, the added revenue will go toward replenishing fund balances and increasing police and firefighter pay as specified by collective bargaining agreements between the town and police and fire unions. Public safety expenses are expected to increase 6.1% overall.

Personnel services — which include salary, benefits and retirement costs — make up the vast majority, 82%, of general fund expenditures. The town has been increasing staff pay since the 2024 fiscal year.

“We started doing salary studies to make sure that we were competitive because we were losing a lot of employees at that time. We couldn’t hold on to them,” Smith said. “So the town manager had HR hire a consultant to look at all the job descriptions and do comparables with other municipalities and counties, and that’s when we started doing salary adjustments.”

This year, salary increases combine a 3.5% cost of living adjustment with a performance-based raise that can range from 0% to 5%. Performance evaluations are still being wrapped up for the year, so Smith said she calculated a 3% performance-based raise for every department other than fire or police. Even with those pay raises, the total budgets of six departments decreased overall.

“There were a lot of discussions with the departments, and we run a pretty lean ship here, so everyone is really trying to continue that,” Budget Manager Erica Waggoner said.

But, while the property tax millage could increase, the total tax bill for gulfside residents will decrease. That’s because the beach renourishment millage tacked on to property tax bills will decrease 31%. Property owners in the Gulfside district will pay a total millage of 2.4795 compared to 2.5543 the previous year. Bayside district residents, who are charged less than Gulfside residents for beach renourishment, will pay a total millage of 2.1925 compared to 2.1371 the previous year.

The decrease in the next fiscal year is because the debt to pay for the last beach renourishment project has been paid off. Now, the town is shifting to a model that will bring in an estimated $2.5 million annually, which will pay for a portion of the next renourishment project.

Town Commission will take its first vote on the proposed budget and millage at its Sept. 14 meeting. Smith said the commission will be presented with a combined resolution for multiple millage rates, including the newly-approved canal millage, the recently changed beach millage and the proposed increased 1.999 operating millage. It will need a unanimous vote. If that fails, a backup resolution will already be written with a 1.960 operating millage.