The Melbourne City Council adopted a $315,391,394 citywide budget for fiscal year 2025-26 and set the operating millage rate at 7.0112 mills — an 11.4% increase over the rollback rate — during a special budget public hearing. The council also approved a 0.2977-mill debt service rate for the Police Headquarters and created two dedicated funds for pavement management and machinery and equipment replacement.

City staff told the council the higher millage is intended to cover increased employee compensation, previously awarded union contracts and to dedicate ongoing revenue for pavement management and equipment replacement. Ross McGinn, speaking for staff, said council had revisited earlier drafts, incorporated the higher millage council requested and adjusted capital project funding, including removing an FDOT drainage utility adjustment from the capital improvements program after it was funded at the third quarter.

The council approved a series of related resolutions by roll call vote, each passing unanimously. Resolution 4372 sets the operating millage at 7.0112 mills and cites Florida Statute 200.065 as the statutory framework for the rate calculation. The council also approved Resolution 4373 to establish a Pavement Management Program Fund and dedicate 6.92% of operating property-tax revenue to that purpose; Resolution 4374 to establish a Machinery and Equipment Replacement Fund and dedicate 6.1% of operating property-tax revenue; and Resolution 4375 adopting the citywide budget of $315,391,394.

Council members also adopted budgets for community redevelopment funds. The Melbourne Downtown Community Redevelopment Fund was approved at $3,152,861 (Resolution 4376) and the Old Eau Gallie Riverfront CRA fund at $1,194,785 (Resolution 4377). The council then convened as the Melbourne Downtown CRA and Old Eau Gallie Riverfront CRA agencies and adopted corresponding agency resolutions (4378 and 4379) mirroring the fund-level approvals.

During public comment, an unidentified resident commended the council for not drawing down reserves and for establishing the dedicated pavement and equipment funds, saying the city was “staying the course” and placing Melbourne in a “very solid financial situation.” Council members noted that reserves are appropriate for extraordinary events such as storm recovery and observed that FEMA reimbursements for past storms can arrive years later.

Votes at a glance: All listed motions carried by roll call vote with Council members Hanley, Kennedy, Smith, LaRusso, Bassett and Mayor Alfrey voting aye on the items recorded in this hearing. The approved items and adopted amounts/rates include: operating millage 7.0112 mills (Resolution 4372); Police Headquarters debt service 0.2977 mills; Pavement Management Program Fund with a target funding goal referenced at $5,100,000 annually and a dedication of 6.92% of operating property-tax revenue (Resolution 4373); Machinery and Equipment Replacement Fund with 6.1% dedication (Resolution 4374); citywide FY2025-26 budget $315,391,394 (Resolution 4375); Melbourne Downtown CRA fund $3,152,861 (Resolution 4376); Old Eau Gallie Riverfront CRA fund $1,194,785 (Resolution 4377); and corresponding CRA agency adoptions (Resolutions 4378, 4379).

The council indicated no additional public testimony had been submitted for the items and closed the special budget hearing after the votes. The meeting record shows these budget and millage actions are final for the hearing; the council did not vote to reduce the millage or to direct staff to change the adopted allocations at this session.