Oakland keeps millage at 6.7 mills, adopts FY2026 budget after insurance savings boost reserves

The Town Commission of the Town of Oakland on Sept. 23 adopted a millage rate of 6.7 mills and approved the fiscal year 2026 budget, voting to pass Resolution 2025-09 (millage) and Resolution 2025-10 (budget).

The move preserves the same millage rate used in FY2025 and follows a staff presentation that said the town’s rollback rate was 6.14 mills, making the proposed 6.7 mills about 9% higher than the rollback rate. "The millage rate for fiscal year 2025 was 6.7 mills ... our recommendation this year is to keep the millage the same for fiscal year 2026," Gabby, a town staff member, told the commission during the public hearing on rates.

Why it matters: Ad valorem revenues remain the primary funding source for the general fund; staff emphasized that approximately half of general fund expenditures are for public safety. Officials said recent insurance savings increased the town’s contingency and reduced the pressure to draw on reserves.

Key budget details and discussion points presented to the commission included: - Revenue mix: staff said intergovernmental revenue was listed at $9,900,000 (about 33%) across all funds and that ad valorem is a primary general fund source. Charges for services and reserves were described as other material revenue sources. - Expenditures: staff said public safety accounts for roughly 50% of general fund expenditures (listed as about $5,400,000). Other large items included general government (about 14%) and public works (about 12%). - Insurance savings: staff reported that the town renewed general liability insurance and workers’ compensation with Preferred Government Insurance, yielding a 38% savings versus the expiring premium and a two-year rate lock; that change increased the general fund contingency. - Contingency and reserves: staff moved certain overtime budgeting lines into compensation codes and said tentative reserves rose to $302,000 for contingency purposes after the insurance savings; separately, auditors cited roughly $4,000,000 in broader reserves across funds. Staff said general fund cash on hand is approximately $2,000,000, water about $1,000,000, and impact-fee balances about $4,000,000. - Use of fund balance: the budget includes a line of $500,000 labeled “use of fund balance”; staff explained about $200,000 of that was intended for fire-rescue payments and the remaining $300,000 was included to balance the budget in the event of unexpected midyear increases or unbudgeted costs. Staff said they do not expect to fully tap that amount given the insurance savings. - Capital and impact-fee projects: staff noted $500,000 listed for additional water plant and pump designs and $500,000 for dirt-road improvements in the impact-fee fund; they clarified those funds would be applied only to qualifying projects demonstrated by the required studies. - Grants and staffing: the budget includes $30,000 for grant-writing services; commissioners urged pursuing in-house or contracted grant-writing capacity. The commission was also told the town would fill an HR manager position (with payroll experience) after Melody (human resources director) resigned; Melody will remain on a part-time payroll basis until the position is filled.

Public comment and commission remarks: resident Ed Kulakowski asked about an earlier meeting with Orange County Fire; Mayor Shane Taylor responded with an update that county staff and a deputy chief met with town leaders and will return with detailed operational cost information and a re-evaluation of which county apparatus are routinely dispatched to Oakland. Commissioners thanked staff for the budget presentation and the new graphs used to illustrate revenue and spending.

Formal action: Commissioner Ramos moved and Commissioner McMullen seconded the motion to adopt Resolution 2025-09 setting the 6.7 millage; the motion passed with recorded affirmative votes from Commissioner Keller, Vice Mayor Satterfield, Mayor Shane Taylor, Commissioner Ramos and Commissioner McMullen. Later, Commissioner McMullen moved to adopt Resolution 2025-10 approving the FY2026 budget; the commission again voted unanimously to adopt the budget.

The commission did not alter the proposed millage or budget lines during the meeting. Staff was directed to proceed with the HR manager recruitment and to continue pursuing grant-writing resources. Town staff said they would provide any additional clarifications requested by commissioners after the meeting.