Okaloosa County commissioners on Sept. 4 approved tentative millage-rate resolutions and a tentative $687,249,428 fiscal year 2026 budget, voting unanimously after a staff presentation and two public comments that raised questions about county funding for environmental remediation of the SS United States vessel.

The tentative budget ‘‘contemplates holding the line on the county property tax millage at 3.8308 mills,’’ a staff member said, adding that the countywide rate ‘‘exceeds the rollback rate of 3.6825 mills by 4.03%.’’ The board set the unincorporated municipal services taxing unit (MSTU) rate at the rollback rate of 0.288 mills, down from 0.299 mills, producing an aggregate millage of 3.9613 mills, which staff said ‘‘exceeds the rollback rate of 3.8193 mills by 3.72%.’’

Why it matters: The tentative budget sets spending priorities and the tax rates used to prepare final levies. Commissioners must adopt final millage rates and the final budget at a subsequent hearing; staff said the final budget hearing is scheduled for Sept. 16 at the Shalimar County Administration Building.

Most important facts first: Staff reported the tentative FY26 budget totals $687,249,428 after updates to state revenue estimates, Florida Retirement System rates and the inclusion of the Dorcas Fire District budget. Ad valorem property tax revenues were said to account for about 16.9% of the overall budget. Staff estimated ad valorem collections at roughly $117,000,000 for FY26 compared with about $111,000,000 in FY25 and noted a conservative revenue budgeting practice that assumes 95% of collectible property taxes.

Staff highlighted several other fiscal details: certified property values increased ‘‘by 6 and a half million’’; the county’s general fund reserve policy requires at least two months of operating expenditures on hand and, according to staff, reserves remain healthy; the county’s bond rating moved from AA+ to AAA, which staff said benefited two bond issuances this summer; and the FY26 budget includes a 3% market adjustment tied to a 2.9% CPI figure and reflects an approximate 15% rise in health insurance premiums. Staff said ProShare revenues were used to offset the premium increases for general fund-supported employees and partially offset increases in other funds.

Personnel and program notes: The proposed budget contains 26 new positions discussed at prior budget workshops — 10 in the general fund, 11 in special revenue funds and five in enterprise funds. Staff also noted a roughly $145,000 reduction in MSTU collections tied to lowering the MSTU rate from 0.299 to 0.288, and that the prior 0.299 MSTU rate had been in place for 11 years.

Public comment and a remediation question: Two speakers representing the SS United States Preservation Foundation questioned whether the county has budgeted additional funds for environmental remediation of the SS United States vessel. Justin Ruby, speaking on behalf of the foundation, cited ‘‘section 11 g of the purchase and sale agreement between Okaloosa County and SS United States Conservancy’’ and asked, ‘‘are you prepared to allocate a significant amount of additional funds to remove the toxic zinc chromide primer that we spoke about previously at the last meeting?''

Steve Perry, vice president of the preservation foundation, asked about an earlier, urgently approved allocation and whether the project remains on budget: ‘‘How’s it going on that budget? Are they on target to meet the expectations? Are you above budget? Are you below budget? And are you willing to spend, you know, allocate in the next budget additional funds?'' The commissioners did not debate those questions on the record during the hearing; no staff response to those specific SS United remediation questions is recorded in the meeting transcript.

Formal actions: The board adopted three items by unanimous vote. Commissioner Goodwin moved and Commissioner Palmer seconded the countywide tentative millage-rate resolution; Commissioner Palmer moved and Commissioner Cox seconded the tentative MSTU millage-rate resolution; and Commissioner Goodwin moved and Commissioner Cox seconded the tentative budget resolution. Each measure passed with unanimous ‘‘aye’’ votes.

What’s next: The board will consider final millage rates and the final FY26 budget at a Sept. 16 final budget hearing. Public commenters’ questions about funding for the SS United remediation remain on the record and, per the transcript, were not answered during this meeting.