The most pressing topic was the presentation of the city’s proposed budget for fiscal year 2026, totaling $250,280,012. This marks a notable reduction of approximately 15.5% from the previous fiscal year, primarily due to the completion of significant capital projects. The city manager highlighted that despite the decrease, the budget remains balanced with a millage rate of 6.59 mills, unchanged since 2022, following a reduction from a previous higher rate. The impact of rising property values, which increased by 12.3%, with 9.10% attributed to new growth, was also discussed. This growth positively influenced ad valorem revenues, allowing for continued support of community initiatives, including the affordable housing trust fund, which annually allocates $250,000 to support projects seeking tax credit financing through the Florida Housing Corporation.

Infrastructure development was another focal point, with the city manager outlining several key projects. The budget includes funding for the development of fire station number five at Lake Cartridge Park, increased staffing for law enforcement and firefighters, and improvements to sidewalks and transportation systems to enhance safety. Infrastructure projects such as complete street projects and an update to the airport master plan were also highlighted. A new budgeting platform, OpenGov, was introduced to enhance transparency and accessibility for residents.

The meeting also delved into economic sustainability efforts, with plans to explore incentives for small businesses, funding for a community development financial institution, and a focus on downtown parking to promote resilience and accessibility. The Community Redevelopment Agencies (CRAs) reported strong performance, generating $4.2 million in downtown and $1.56 million in Florence Villa, an overall increase of over $800,000 compared to the prior year.

A significant portion of the discussion was dedicated to affordable housing initiatives. The city continues to focus on improving the quality of life through affordable housing, with a request for applications concerning new affordable housing projects. The trust fund supports 44 different agencies this year. However, a debate surfaced regarding the use of the affordable housing trust fund for infrastructure related to these projects. A commissioner expressed concern about the alignment of such expenditures with previously approved standards and guidelines. The city manager assured the commission of the fund’s flexibility to support infrastructure needs tied to affordable housing developments and agreed to verify this interpretation with legal counsel.

Public safety funding emerged as a issue, with a proposed budget for public safety reaching $34.78 million. However, ad valorem revenues are only expected to generate about $31.5 million, resulting in a shortfall of approximately $3.23 million. This shortfall raises concerns about the city’s ability to cover essential services, such as parks, recreation, and street maintenance, creating a total funding gap of about $20 million. The potential for increasing the millage rate to address the shortfall was mentioned, though it was clarified that an increase in taxes was not being advocated at this time.

Attention also turned to the city’s pension plans, which were described as being in a positive state, although concerns were raised regarding long-term sustainability. The general employee pension plan is funded at about 82.3%, and the firefighter pension plan at 84%, while the police pension plan stands at around 85.8% funded. Concerns about the implications of underfunded plans and the potential liability on the city were discussed, with assurances provided that the city’s funding practices align with best practices.

Employee compensation was another significant topic, with a proposed step plan and market adjustments based on a recent compensation study. The budget accounts for a total of 766 positions, including 23 new full-time roles, nine of which are funded through the general fund. Dr. John Daly from the University of South Florida conducted a pay compensation analysis, revealing that the city’s pay rates are on average 5.5% below the local labor market. A recommendation was made to increase the base pay by 5% to enhance competitiveness in attracting and retaining employees.

The commission also addressed key budgetary adjustments and departmental changes, with the police department seeing the most financial increase, attributed to the hiring of new officers and vehicle replacements. Additionally, the budget for the parks and recreation department displayed modest growth, while the streets division’s budget saw a substantial reduction due to one-time funding in the previous year.

The commission reviewed various capital projects, including transportation improvements funded through a one mill tax, the JP Powell memorial quiet zone project, and beautification efforts in the downtown area. The presentation concluded with appreciation for the finance staff’s efforts in implementing OpenGov, a new budgeting platform aimed at improving public engagement and transparency.