The meeting began with an in-depth review of the operations budget for fiscal year 26. Mayor Jim Kuretski expressed gratitude to the town staff for their efforts in preparing the budget, noting improvements from previous years. However, the discussion quickly turned to the ongoing contract negotiations with the police department, which have not yet been reflected in the budget. The Mayor highlighted a substantial employment package aimed at keeping police salaries competitive, addressing retirement issues, and considering shift differentials. This package is a significant increase over previous offers.

Another topic was the expected changes in utility rates. The Town Manager proposed a 3% increase in water rates and a 7% increase in stormwater rates. These changes are intended to address rising construction costs and ensure the town can meet its renewal and replacement (RNR) project funding goals. Council members expressed differing views on these increases, with some requesting a more thorough understanding of the budget before supporting them. The anticipated rise in Florida Power & Light (FPL) rates by about 10% next year was also discussed, adding to the financial pressures facing the town.

The council explored various revenue assumptions, revealing early estimates of a $1.1 trillion valuation with a 6.58% increase in ad valorem revenue. This is set to bring in $2.5 million across different funds, with the general fund projected to receive over $34 million. However, concerns were raised about reductions in state-shared revenues, particularly sales tax, due to federal interest rate hikes aimed at slowing economic growth. Non-ad valorem revenues could decrease by $859,000, although overall general fund revenue is expected to rise by $2 million, mainly due to increased ad valorem dollars.

The meeting further delved into the town’s expenditure projections, which are set to rise by $36.4 million across all funds. This increase is largely driven by transfers for fire rescue services and a proposed 5% salary adjustment for all employees. The council discussed the importance of maintaining competitive compensation through a cost-of-living adjustment (COLA) and merit split. The suggested split was 3% for COLA and 2% for merit.

Health insurance costs were another concern, with an anticipated $45,000 increase for property and liability insurance. However, for the fifth consecutive year, no increase is needed for health insurance. The fire fund is expected to see a $20.6 million contribution from general fund reserves, with the town maintaining a healthy reserve benchmark of around $12 million for health insurance.

Public safety funding, particularly for the Jupiter Fire Rescue Department, was a focus. The operating budget for the department is set at $17.3 million, with additional allocations for debt service and capital purchases. The council reviewed the expected delivery timelines for ambulances and fire apparatus, noting anticipated receipt dates in December 2025 and June 2026, respectively.

The council also examined the town’s carryover funds and project funding. Discussions highlighted concerns about over-encumbered funds and the potential to “sweep” some of these back into the general reserves if they are not used. The council emphasized the importance of transparency in project timelines and the need for realistic evaluations of future expenditures.

Finally, the meeting addressed the reallocation of funds and prioritization of projects under the Community Investment Program (CIP). The council considered canceling non-essential projects to ensure that funds are available for prioritized initiatives. Specific projects, such as Sawfish Bay Park and enhancements at Indian Town, were discussed, with recommendations to use available funds to expedite these projects. Public safety and general government legacy projects were also reviewed, with discussions on reallocating funds to address current priorities.