The meeting’s primary focus was on the proposed budget, notably the discussion around maintaining the current millage rate of 3.4752. Keeping this rate was emphasized as crucial, as it would allow for the possibility of a later tax rollback, but not an increase without prior notice. This strategic decision is intended to maintain financial flexibility and avoid abrupt tax hikes. The implications of this decision were illustrated with clear examples: a homeowner with a $100,000 taxable value would see an annual increase of approximately $10, while a $600,000 home would experience an increase of about $625.55. The average home value in Leesburg, estimated between $200,000 and $250,000, would see a tax increase of about $25 for properties with homestead exemptions if the millage rate remained unchanged.

Comparisons to other cities in Lake County were made, underscoring Leesburg’s relatively low tax rate, second only to Mount Dora’s rate of 2.8 mills. The discussion detailed that incorporated residents typically face multiple millage rates, factoring in county general fund taxes and additional service fees, totaling around 5.8 mills for county taxes.

A substantial portion of the budget discussion revolved around employee compensation, focusing on collective bargaining agreements (CBAs) for police and fire services. The Leesburg City Commission is considering an increase in police and fire department budgets to address recruitment and retention challenges. The police department, for example, is slated to see a $630,831 budget increase, which includes a 6% pay raise for sworn officers and improved retirement benefits. This comes in response to recruitment struggles, with the department currently employing 66 officers, down from a target of 85, attributed to inadequate benefits compared to nearby municipalities.

In parallel, the fire department’s agreement proposes a $532,000 increase, offering a 12% pay raise and pension modifications, including the ability to bank overtime hours for retirement contributions. These adjustments aim to make the department’s compensation packages more competitive, addressing recruitment and retention issues. The city is also considering a 5% salary increase for general employees, contingent on satisfactory performance evaluations, to maintain competitive compensation across all departments.

The budget discussions also touched on community funding, specifically the financial challenges facing the Center for the Arts. The center has requested increased funding from $10,670 to $30,000 due to lost state support. The commission debated the extent of financial backing for the arts, acknowledging the center’s need for temporary assistance to navigate financial difficulties while maintaining operations.

In addition to the arts funding, the commission reviewed the financial performance of the annual Bikefest event, which reported losses of $69,000 following a previous year’s $75,000 loss. Despite these deficits, the event is seen as a vital support for civic organizations and local businesses, allocating $54,000 to these groups from the proceeds. The commission considered outsourcing alcohol sales to reduce costs and possibly transform Bikefest into a profit center, thereby restoring some civic funding.

The meeting also addressed the city’s broader revenue and expenditure strategies, noting the importance of cautious financial planning amid potential legislative changes affecting municipal revenues. Discussions included the need for a conservative approach to budgeting, reflecting on the allocation of funds to essential services while remaining responsive to community needs.