The Recommended FY 2027 Annual City Budget is provided for the Commission's review. An overview will be presented at the Commission meeting.
Staff recommends that the Commission reduce the current operating millage rate of 5.6979 mills to 5.6799 for FY 2027. This operating millage rate is the lowest rate in eighteen years and the twelfth reduction in operating millage over thirteen years. This rate reflects a reduction of 0.7196 mills since FY 2014, a decrease of 11.2%.
Staff also recommends that the Commission adopt a debt service millage rate of 0.3136 mills for the Series 2020 ($26 million) G.O. Bonds; and 0.1706 mills for the Series 2022 ($14 million) G.O. Bonds. The combined debt service millage rate is 0.4842 mills, a decrease of 5.2% compared to FY 2026.
The operating and debt millage rates combined total of 6.1641 mills is a decrease of 0.0448 mills from the combined total of 6.2089 last year. Two separate millage rates will appear on the TRIM notices and tax bills - for the operating millage and for the combined debt service millage.
In preparing the recommended budget, staff utilized Commission direction and guidance as the basis for determining the programs and levels of services being proposed in the budget. The FY 2027 recommended budget is the fifth budget to incorporate the Strategic Plan's updated Strategic Performance Areas that were approved by the City Commission in 2022. These priorities determine the funding levels that determine the preliminary millage rates and the preliminary fire, stormwater, and solid waste assessment rates that are being recommended for adoption in subsequent items on the agenda.
The recommended budget is a financial plan for City operations and investments for an entire year. This plan was prepared to follow the Commission's policy direction, vision, and ambitious plans by responsibly funding major projects and initiatives to address quality of life issues, improve infrastructure, enhance services, and promote redevelopment and investment. The recommended budget is fiscally prudent, meeting all legal requirements, balancing all revenues and expenditures, and following City fiscal policies, and setting service charges and fees to ensure appropriate recovery of costs.
The budget is a complex document, and modifications require substantial staff time and effort to prepare and implement to ensure the document remains balanced and revenues are appropriately matched to their legally allowable uses. As with all budgets, this document is only a plan. During the budget year, there are multiple opportunities to amend this plan as needed in response to new information, changes in policy directions, and other developments. Issues that arise after the presentation of the Recommended Budget in July, for example, have been addressed as part of the regular November budget amendment.
Staff recommends the Commission consider the FY 2027 Recommended Budget and provide guidance and direction as warranted. Attached to this agenda item are copies of the City Manager's Recommended FY 2027 Budget Message, a listing of FY 2027 Business Plan Initiatives and Non-infrastructure Capital Outlay, the draft of FY 2027 Capital Improvement Program (CIP), the FY 2027 Vehicle Replacement Schedule, and the FY 2027 Staffing Summary by Division.
Budget data will be posted to the City's OpenGov transparency platform. Electronic copies of the budget are available upon request by contacting the City Clerk's Office or the Department of Financial Services.