City finance staff on Aug. 6 presented the proposed FY2026 utility enterprise and special‑revenue budgets to the Tavares City Council and outlined capital and operating priorities, revenue assumptions and staffing changes.

Staff said the utility fund revenues are budgeted to rise from about $13.36 million in FY2025 to approximately $15.12 million in FY2026, largely to set aside reserves for capital projects consistent with a rate study. The utility enterprise funds cover water, wastewater, reuse, stormwater, solid waste and a seaplane‑based marina. Staff described transfers from enterprise funds to reimburse the general fund for administrative services and noted that SRF (State Revolving Fund) debt for utility projects remains outstanding.

Key points included: no new general‑fund debt proposed in the FY2026 budget; targeted reserve increases to meet GFOA standards (staff cited an estimated reserve balance and a two‑month operating target); capital projects and grants under review (stormwater projects, water main extensions, wastewater plant upgrades and design work); small staffing additions in enterprise funds (a utility technician, a collection technician and a waterfront operations specialist); and several specific capital items and renewal‑and‑replacement projects (lift station rehabilitation, generator replacement and equipment for laboratory and treatment facilities).

Council members asked clarifying questions about lift‑station repair costs (staff estimated motor replacement cost ranges and indicated a full lift‑station replacement could be in the order of hundreds of thousands of dollars) and about whether recreational uses (e.g., sports field lighting) would be utilized. Staff said some capital items depend on funding and grant availability and that some project timelines will be addressed at the Aug. 20 budget workshop and September budget hearings.

Staff summarized other special funds (pavilion, TIF/community development, police/fire impact fees and infrastructure sales tax) and noted larger capital items proposed in the infrastructure fund such as road paving, bucket truck replacement and playground improvements. Council did not adopt the budget at this meeting; two public hearings on the budget were scheduled for Sept. 3 and Sept. 17.