Cocoa Beach presents $105 million proposed FY26 budget; reserves drop, CIP relies on grants

'The fiscal year 26 proposed annual budget is a 105,000,000 reducing the overall budget by almost 18,000,000,' the city's budget presenter said, summarizing the fiscal 2026 draft that staff presented to the City Commission.

Why it matters: the proposed budget reduces the city's total spending across all funds and draws down reserves. Staff and commissioners flagged several large capital projects and grant-dependent revenues that together increase financial risk if reimbursements are delayed and reduce the city’s rainy-day funds ahead of hurricane season.

Key figures and immediate decisions

- Proposed total: staff reported a roughly $105 million proposed annual budget for FY26, down from about $123 million in FY25. - Millage: the commission set a proposed millage rate of 6.00; staff said that figure is 0.65 of a mill above the rollback rate and "it will be advertised as a tax increase." - Reserves: total reserves across all funds were shown at about $16.2 million (roughly 2½ to 3 months of operating expenses); the finance presenter described the goal of rebuilding reserves toward a healthy balance over the coming years. - General fund: general fund reserves of about $11.3 million meet the city’s reserve ordinance minimum (ordinance 16-81), which the presenter said requires at least $10.2 million. - Personnel/services: budgeted personnel services across funds totaled about $26.6 million (about 51% of the operating budget). Staff noted a projected 4% cost-of-living-type adjustment that will affect both union and nonunion employees; union negotiations are pending and staff plans budget amendments if necessary.

Revenue details and grant timing

Staff called attention to several revenue changes: higher fee projections tied to short-term rental (STR) and business TR regulations and fee adjustments in charges for services. Fine-and-forfeiture revenues were discussed at length after a commissioner asked why that line item declined; staff said the prior year included a one-off forfeiture and cautioned that the fines account aggregates many types of citations…