The public hearing opened with a discussion on the proposed millage rate of 4.975 mills per thousand of valuation. This rate represents a 7.84% increase over the rollback rate of 4.61 mills. The city manager presented a comprehensive breakdown of the factors necessitating this rate increase, emphasizing operational and capital needs. Rising costs tied to union contracts, civil service, health insurance, workers’ compensation, and property casualty insurance were highlighted. Additionally, vendor contracts for median maintenance, building materials, sports officials, and fireworks have also seen cost escalations.

Key capital projects contributing to the millage rate hike include a proposed $2 million allocation for park improvements at City Center Fields, Causeway Park, and All Children’s Park. The budget also designates $1 million for a new police department generator and $200,000 in matching funds for FEMA grants aimed at aiding 52 homes impacted by Hurricane Ian and other storms. These grants require upfront payment by the city, with reimbursement expected later. The city also plans to allocate funds for Main Street Bridge repairs and the replacement of an outdated telephone system from the 1990s.

Council members acknowledged the necessity of the proposed increase, citing benchmarking data that showed many other municipalities experiencing budget expansions exceeding 10%. One council member remarked, “we are near the bottom in the size of our budget,” praising the city staff’s efforts to limit budget growth despite inflationary pressures. Another member added, “it just shows the credit of all the staff and management what you guys have done,” underscoring the effectiveness of fiscal management amidst rising operational costs.

The discussion also touched on the FEMA project related to property acquisition for homes affected by Hurricane Ian. The federal government has allocated funds for this initiative, allowing residents to elevate their homes or sell them to the city for demolition. With around 52 homeowners expressing interest, the city’s total estimated cost, if all properties proceed as planned, would be approximately $200,000. This approach is seen as a cost-effective alternative to traditional stormwater improvements, which could run into millions.

Concerns were voiced regarding the timeline of the property acquisition process and its impact on the budget. Historical context was given, noting that similar programs from previous storms had taken years to finalize, although quicker progress is anticipated this time. Additionally, as properties are acquired and taken off the tax rolls, there would be future budgetary implications.

There was a broader discussion on the city’s current millage rate, with some members expressing a desire to reduce it further in light of taxpayer challenges. Despite this, the council recognized that Port Orange has managed to lower the tax rate compared to the previous year while maintaining service levels, unlike other cities experiencing tax rate increases. It was noted that Port Orange has the highest percentage of homesteaded properties in Volusia County, placing a significant tax burden on local businesses to fill the gap created by homestead exemptions.

The symbiotic relationship between the city and its businesses was emphasized, with over 60% of properties in Port Orange being homesteaded.

Public comments were invited on the proposed millage rate; however, no members of the public chose to speak. The council then moved to adopt the tentative property tax millage rates for fiscal year 2025. The proposed rate of 4.975 mills was approved.

Subsequently, the council discussed and moved to approve the tentative budget for fiscal year 2025, encompassing all operating and capital costs across various funds, amounting to approximately $25.7 million. This budget includes provisions for general, special revenue, debt service, capital, enterprise, and internal service funds. A motion was made and approved for the resolution adopting the budget, with the first reading concluded. The council expressed intentions to explore further potential reductions in the millage rate before the next reading.