The Sebastian City Council adopted a final millage rate of 3.4455 mills and approved the fiscal year 2025–26 budget after the second public hearing required by Florida law.

Finance staff said the proposed millage is 14.29% higher than the rollback rate (3.0148) and was necessary to balance the general fund without using more than a modest amount of reserves. City staff reported a certified increase in total taxable values of approximately $193 million (an 8.4% rise), comprised of new construction and reassessments. Staff said the proposed millage produces revenues to cover personnel cost increases, operating expenses and capital items and that alternative options (using the rollback rate) would require using more than $1 million in reserves.

Public comment included multiple residents urging the council not to raise taxes or to use existing reserves. One frequent commenter, Damien Gilliams (1623 U.S. 1), argued the city had ample reserves and criticized recent spending, citing prior capital projects and calling for greater fiscal restraint.

Council members acknowledged the public concerns, outlining the reasons for the increase: higher personnel costs (including a proposed 6% pay increase for non-union staff and increased health-insurance costs), a police contract on the agenda, and capital needs for pavement, airport and waterfront projects. Council members noted staff trimmed the tentative budget after the initial hearing and said some uses of reserves were one-time and intended to stabilize the transition to a new retirement plan and other one-time items.

By roll call the council approved resolution R‑25‑37 setting the final millage at 3.4455 and resolution R‑25‑38 adopting the FY 2025–26 budget.