City plans historic budget overhaul amid financial challenges

In a recent government meeting, Panama City officials discussed significant advancements in the Panama City Fire Department's accreditation process and the city's fiscal challenges as they prepare for the upcoming budget year.

The Fire Department, currently rated as an ISO level two by the Insurance Services Organization, is on track to become the first accredited agency in the county. Chief Smith highlighted that the department has made substantial improvements over the past three years, including updates to emergency plans and operational continuity. The accreditation process, which occurs every five years, is data-driven and aims to enhance service delivery not only for the fire department but for the city as a whole.

City Clerk Jan Smith provided an overview of the fiscal year 2024 accomplishments, noting improvements in financial reporting and customer service operations. The city has successfully reduced audit findings from six in 2020 to one in 2023, with plans to eliminate that finding in the next report. However, she emphasized the tight financial situation, with a proposed budget of $68.7 million for the general fund, which requires careful management of reserves and funding requests.

The proposed budget for fiscal year 2025 totals approximately $157 million, reflecting a 4.3% increase from the previous year. This budget includes significant capital projects and a 2% cost-of-living adjustment for employees. However, it also reveals a stark reality: departments submitted requests totaling $22 million more than what could be funded, leading to cuts in various areas, including public safety and infrastructure.

To address the funding gap, a recommendation for a 0.5 mil increase in the millage rate was proposed, which would help generate additional revenue amid rising costs and increased service demands. The city’s taxable values have risen by 10.83%, which is expected to bring in an additional $1.6 million in revenue compared to last year.

As the commission deliberates on the budget and millage rates, the discussions underscore the ongoing challenges of balancing community needs with available resources, while striving for improvements in city services and infrastructure.