The Holiday Island City Council and the Holiday Island Suburban Improvement District Board of Commissioners held a joint work session on Saturday, Jan. 18, to discuss avenues for transitioning most, if not all, government functions to the city.

Key to that transition will be identifying sources of revenue for the city, which was incorporated four years ago after being approved by local voters in the 2020 general election.

The first step will be the creation of a joint committee composed of two members each from the council and the board of commissioners that will look into moving responsibility for streets from the suburban improvement district to the city. The committee members will make monthly reports to their respective bodies.

The suburban improvement district is funded through annual “assessments of benefits” paid by property owners in the district. The city government, meanwhile, relies largely on turnback funds from the county and state in the absence of a city sales tax. The prospect of seeking a city sales tax was discussed during the work session, with most residents in attendance indicating that they would support such a tax.

Mayor Dan Kees, who helped lead the campaign to incorporate Holiday Island as a city, pointed out that organizers of that campaign didn’t promise not to implement any new taxes under any circumstances. Instead, Kees said, they pledged not to seek new taxes without a corresponding decrease in the assessment of benefits paid by property owners to the suburban improvement district.

City officials said they could implement a property tax without a public vote, but such a tax would be limited to five mills unless residents vote to approve a higher millage. City recorder/treasurer Wesley Stille said a 5-mill property tax would bring in approximately $280,000 for the city, but that the city would no longer receive county turnback funds of about $250,000 per year.

The city council and the board of commissioners agreed to hold more joint work sessions moving forward.