Ormond Beach commission approves 2025‑26 budget with 4.3202‑mill operating rate after last‑minute amendments

The Ormond Beach City Commission voted unanimously to adopt an amended final operating millage rate of 4.3202 mills and approve the fiscal year 2025–26 budget at its September meeting, after weeks of public comment and a last‑minute proposal to lower the rate.

The vote came after discussion of a proposal from Commissioner Travis Sargent to reduce multiple dedicated millages and shift about $1,061,557 from reserves to hold the millage flat. Commissioners debated several options at the dais before adopting the amended resolution setting the operating millage at 4.3202 mills and the debt service millage at 0.063 for the 2010 general obligation bond sinking fund.

The budget matters because the millage rate determines how much property owners pay to fund city operations and capital projects. Finance Director Kelly McGuire told the commission that, under the adopted proposal and using the planned reserve transfer, the city would still have a combined general fund reserve of 17.54%, above the city’s 15% benchmark.

Discussion and public comment focused on competing priorities: some residents urged the commission to maintain or raise revenues to preserve public safety staffing, parks and recreation programming and capital work, while others opposed any tax increase and questioned the city’s spending and contract practices. At the podium, longtime resident Susan Persis said, “This budget strengthens our commitment to the public safety by ensuring our firefighters and police officers have the salaries they deserve and the resources they need.” Several other residents — including Ed Kelly and Scott Gutakis — urged the commission to approve the increase for safety and infrastructure needs.

Commissioner Sargent described his amendment during debate: “I would like to make a motion, amend a motion, to reduce the general fund millage by 0.086 mills.” His proposal listed specific reductions (including eliminating two park positions and cutting the live streaming contract) and an offset using reserves to fund key projects in the coming year. Staff explained the tradeoffs repeatedly: reducing dedicated millages now would lower ongoing taxing capacity in later years and could force future commissions to restore millage for recurring programs if projects or personnel were to be funded again.

Several commissioners said they supported most of the objectives in principle but worried about timing and sustainability. Commissioner Kristen Deaton and Deputy Mayor Lori Tolland both said they wanted the parks and recreation positions left in the budget after discussion about daily maintenance and playground inspections. Commissioner Howard Bridal emphasized infrastructure needs such as stormwater and road stabilization and urged planning for long‑term repairs.

Mayor Jason Leslie described the city’s charter responsibilities and said a single elected official cannot implement changes unilaterally: “We are a city manager, a form of government. The elected officials, mayor and commissioners hire the city manager and city attorney to run the day‑to‑day operations.” Leslie said some last‑minute changes reduced the city’s originally proposed rate and that he expects the commission and staff to pursue additional cost‑saving reviews and workshops over the year to aim for lower millage in future budgets.

After a 15‑minute recess to allow staff to recalculate rollback and budget numbers, the commission returned and approved the amended millage and budget. City Clerk roll call recorded unanimous votes for the amended operating rate and the underlying resolution.

The commission also approved the second reading of the annual budget ordinance (Ordinance No. 2025‑29) as amended to reflect the revised millage and a $380,000 reduction in the general fund appropriation; that ordinance passed unanimously.

What happens next: commissioners directed staff to hold workshops with the Budget Advisory Board and department heads within the next 30 to 90 days to identify contract savings, rebid large contracts, and establish a strategic plan for projects and reserves. Multiple commissioners asked staff to pay particular attention to large contracts that auto‑renew and to seek grants for capital projects where possible.

Votes at a glance - Resolution 2025‑146 (final millage rates): Adopted as amended to set the operating millage at 4.3202 mills and the debt service millage at 0.063. Vote: Jason Leslie, Lori Tolland, Travis Sargent, Kristen Deaton, Howard Bridal — all “yes.” - Ordinance 2025‑29 (annual budget, second reading): Adopted as amended (general fund amended to $52,356,211; total appropriation for all funds $142,413,379). Vote: unanimous.

Residents and commission members left the meeting with a clear direction to pursue more aggressive budget review early in the next fiscal cycle. Staff said the city will start financial trend workshops similar to prior years (historically held in March) to provide earlier notice of revenue and expenditure shifts.

The commission adjourned after routine business and other public hearings.