The primary focus of the meeting was the public hearing on the proposed final millage rates and budget. The council had previously adopted tentative rates on September 5, 2024. The proposed operating millage rate of 5.954 mills and a general obligation bond debt service millage of 0.121 mills would bring the total millage rate to 6.75 mills. This budget is projected to generate $23,124,600 in revenue for the general fund, reflecting an increase of $3,933.42 over the previous fiscal year. The meeting saw several residents voicing concerns about the significant tax hike.

Residents expressed their dissatisfaction with the proposed tax increase, emphasizing its impact on affordability in Oviedo. One speaker noted that the 18% increase would make home purchasing and renting more difficult, potentially leading landlords to pass the increased costs onto tenants. The speaker urged the council to find a “win-win solution” that would not overly burden residents. Another resident, Laura Crawford, appreciated the mayor’s stance against the substantial tax increase and suggested a smaller increase, such as 0.4%, instead of the proposed 18%.

Crawford also questioned the adequacy of impact fees collected from new developments. She highlighted the financial returns on recreational services, noting the city only recovers 30 cents on the dollar for such programs and mentioned that some city events result in a total financial loss.

Kathy Joy echoed similar sentiments, describing the proposed 18% tax hike as “outrageous” and advocated for a more gradual approach to tax increases. Judith Delor Smith, a lifelong Oviedo resident, shared her historical perspective on the city’s growth and financial struggles, acknowledging her discontent with tax increases but commending the finance staff for their transparency.

The council members engaged in a discussion about the transparency of the budgetary process, with some expressing frustration that residents felt uninformed despite multiple public meetings and notices. There was a proposal to present a budget overview during the meeting to better educate attendees on the fiscal situation. The council ultimately agreed to take a recess to prepare for the presentation.

A significant portion of the meeting also focused on the financial implications of inflation and property tax exemptions on the city’s budget. It was emphasized that inflation has consistently exceeded 3% over the past several years, constraining the city’s ability to generate necessary revenue. The “Save Our Homes” exemptions impacted the city’s financial capabilities, with the taxable value of properties growing considerably since 2019 but resulting in a revenue loss due to exemptions totaling around $15 million for 2024.

Public safety salaries were another point of discussion, with ongoing negotiations for police and fire personnel aimed at maintaining competitive salaries. The city’s pension contributions for public safety personnel are projected to increase due to salary adjustments and changes in pension plans, adding to the financial pressures.

The council also discussed a proposed three-year plan to address salary negotiations for police and fire personnel, focusing on necessary wage increases. There was a consensus that a 0.4% increase in salaries was essential to remain competitive in the job market, with questions raised about an additional 0.2% increase.

Further discussions centered on the proposed 0.4 mill rate increase and its implications for future budget planning. A projected withdrawal from the fund balance of nearly $77,000 for fiscal year 2025-2026 was highlighted, with concerns about the sustainability of funding. The council considered using available funds for one-time costs while negotiating salaries, benefits, and pensions over the three-year plan.

In other business, the council approved a lease agreement for the Lon House with the Oviedo Historical Society, discussed ordinances related to the 2045 Mobility Plan, and adopted a natural gas franchise agreement with People’s Gas System, Inc. They also reviewed the progress of American Rescue Plan Act (ARPA) funding allocations, emphasizing the need to meet the obligation deadline.