In a recent government meeting, city officials discussed the adoption of the tentative millage rate and operating budget for fiscal year 2025. City Manager Andrew Thompson presented the recommended budget, which marks the beginning of the formal budget approval process. The meeting included two public hearings: one focused on the fiscal year 2025 millage rates and the other on the tentative budget itself, with a final budget hearing scheduled for September 18.

The proposed budget includes a significant reduction in the operating millage rate to 5.7243 mills, the lowest in 15 years, representing a 10.5% decrease since fiscal year 2014. This reduction is expected to save taxpayers over $17 million. Additionally, the debt service millage rates will also see a decrease, bringing the aggregate rate down to 0.5534 mills, a reduction of approximately 10%.

Key components of the budget include adjustments to special assessments. The fire assessment rate is set to increase from $276 to $382 per residential unit, reflecting rising fire suppression costs. The stormwater assessment will rise by $11 to support major drainage projects, while the residential solid waste assessment will increase from $3.10 to $3.40 due to escalating operational costs.

The budget maintains a reserve of 22% of general fund expenditures and supports a capital improvement program totaling $38.4 million. However, officials noted challenges such as increased pension costs, rising public safety expenses, and higher maintenance needs for aging facilities. The city is also grappling with significant increases in solid waste tipping fees and ongoing supply chain issues affecting essential equipment.

Overall, the proposed budget reflects a commitment to fiscal responsibility while addressing the growing needs of the community.