City Manager Scott Larese initiated the proceedings with a comprehensive presentation on the budget process, outlining the necessity of the proposed increases. Key elements include a 3.5% cost of living adjustment (COLA) for city employees and significant investments in public safety technology and infrastructure. The proposed budget also includes an increase in property valuations by 11% and shared state revenues by 16.7%, balancing against a 7.2% rise in operating and personnel costs.

The budget priorities outlined a five-year operating plan projecting an 8% increase in the current year and a 7% increase for subsequent years. Notable projects include a new public safety complex estimated at $45 million, a public works upgrade at $30 million, and a new city hall at $70 million. However, the city faces unfunded operating and capital needs amounting to $113.3 million.

The water rates study presented by Trevor McCarthy from Raftelis identified the need for a 5% increase in both water and wastewater rates, driven by inflationary pressures and capital improvement needs. This adjustment aims to maintain adequate cash reserves and fund significant projects, such as filter replacements and sewer system expansions.

Public comments were a focal point of the meeting, reflecting widespread concern over the proposed financial measures. A long-time resident criticized the cumulative effect of tax increases, particularly on those with fixed incomes, and questioned the significant rise in retirement contributions and other expenses. This resident highlighted the challenges posed by rising insurance rates and the overall financial strain on residents.

Another speaker focused on the disparity in employee salary increases, arguing for a more substantial adjustment for employees earning less than $60,000. They pointed out that the proposed 3.5% COLA would only provide $1,750 for those earning below $50,000, which they deemed inequitable given the uniformity of essential living expenses.

Kristen Lordy voiced concerns about transparency and access to budget documents, noting deficiencies in the availability of meeting materials online. She advocated for improved communication methods and criticized the current practice of distributing CDs for meeting recordings. Christopher Charles echoed this sentiment, proposing the use of technology to streamline operations and enhance public access to information.

Council members responded to these concerns by emphasizing the importance of maintaining infrastructure and addressing environmental issues. One council member highlighted past failures to invest in infrastructure, leading to significant fines and ongoing problems. They stressed the need for continued financial investment to ensure the health of the Indian River Lagoon and other essential services.

The council also discussed the proposed millage rate in detail, with one member expressing hope for a reduction as new developments bring additional revenue. The member emphasized the importance of thoughtful budget production, balancing fiscal responsibility with the need to invest in the city’s future.

Public comments continued to reflect frustration over rising taxes and infrastructure spending. Trenton Mansfield, a resident, pointed out the burden on renters and new homeowners facing high tax bills. He questioned the city manager’s performance evaluation and potential pay increases, emphasizing the need for fiscal responsibility amid rising costs.

In the formal agenda items, the council moved to adopt the tentative millage rate of 6.5817 mills and the tentative budget for fiscal year 2025, both of which passed unanimously. The discussion also highlighted a dramatic 96.3% reduction in projected impact fees, raising concerns about future city projects.