The City of Homestead on Sept. 24 approved its fiscal year 2025–26 millage rate and adopted the city budget, keeping the operating rate unchanged and moving a series of one-time revenues and fund balances into water-and-sewer projects. The council voted unanimously to set the final operating millage rate at 5.9604 mills and to adopt the budget after brief presentations and a short public hearing.

Why it matters: The council’s motion funnels multiple revenue sources into three prioritized water-and-sewer capital projects — Pump Station 11, the CHROME project and the Flagler water-and-sewer project — accelerating previously scheduled work and reducing the city’s near-term capital reserve for non-utility purposes.

City attorney read the millage numbers into the record before the vote, noting, “The city Of Homestead's final operating millage rate is 5.9604 mills, which is the same as the previous year's millage rate of 5.9604 mills.” The city’s rollback rate was recorded in the hearing materials and the attorney noted the adopted rate is above that threshold as required by statute.

Presentation and reallocations
Budget and finance staff summarized the changes from the first hearing and highlighted recommended reallocations of one-time and wind-down revenues. Budget and Finance Director Carlos Perez told the council that about $145,000 in savings from not running a primary election had been identified; the administration recommended moving $45,000 of that to Pump Station 11 and $100,000 to the parks department to cover a landscaping contract. Perez also outlined a $442,000 payment described as coming from “the Speedway” that will be appropriated and transferred to water and sewer for Pump Station 11.

Perez further said the city expects to recognize at least $550,000 tied to the unwinding of a New Markets Tax Credit structure (described in the meeting as Qualic B / Qualic B funds) and recommended recording that sum as miscellaneous revenue and transferring it to water and sewer. Altogether, Perez said, “in the general fund, we are transferring out a million $37,000 out to the water and sewer fund.”

A separate parks-and-roadway fund will provide additional one-time capital after the recent sale of a city asset described in the presentation as “the sale of Phil.” That sale generated $6.7 million, which the administration proposed to deposit in the parks-and-roadway fund and transfer to water and sewer to help pay for the CHROME and Flagler projects.

Funding plan and remaining gap
The finance presentation showed the three projects’ projected costs and existing funding sources: $625,000 in state appropriations, $3.7 million from a PFAS settlement, the $6.7 million parks-and-roadway proceeds, $1,037,000 transferred from the general fund, and a $550,000 reallocation from CRA funds. After applying those identified sources, staff reported an estimated remaining funding need of about $11.9 million across the three projects.

City Manager clarified the near-term gap on Pump Station 11, telling council that the delta the staff was actively pursuing is approximately $4.9 million for that station and that the city expects to learn on or after Oct. 1 whether an anticipated federal appropriation of roughly $2.2 million can be applied; if received, that amount would reduce any loan the city needs to seek. “If after 10/01/2025, we are successful in getting additional appropriation for the federal government ... that should be about $2,200,000,” the City Manager said.

Council changes and budget amendment
Councilwoman Avila asked to codify a recurring, modest support line for a local holiday event and asked the budget be amended to add a $2,500 line item in the special-events account to standardize city in-kind or small-dollar support for the Waterstone tree-lighting ceremony. She said the change would come from the city’s “other” line item, which staff showed at about $114,000. The council approved the budget adoption subject to that $2,500 support allocation.

Votes and next steps
Councilman Roth moved and Councilman Cannonball seconded the motion to adopt the millage; the council then opened and closed the public hearing with no speakers and adopted the millage on a roll-call unanimous vote. Later, the council adopted the annual budget ordinance on first reading (the ordinance title was read into the record) and voted to approve the budget on the same night with the $2,500 adjustment for the Waterstone event. The council instructed staff to continue work on financing options, including applying for federal appropriations and pursuing a bank loan for the remaining capital needs if additional grants are not secured.

What remains uncertain
Staff described the financing plan as dependent on further grant appropriations and commercial financing. The exact loan amount for Pump Station 11 will hinge on grant outcomes after Oct. 1, 2025, and staff said they will return with specifics once grant notices and loan terms are known.

Community context and timing
The council approved the millage and budget following an abbreviated presentation and limited discussion; no public commenters spoke on the millage or budget at the hearing. The budget ordinance was read into the record for first reading; the council’s votes recorded that the measures carried unanimously. The council asked staff to provide updated financing scenarios as grant decisions and loan proposals evolve.

Ending
With the budget and millage adopted, the City of Homestead has committed identified one-time proceeds and reallocated fund balances to accelerate prioritized water-and-sewer capital work while directing staff to seek grants and loans to close remaining gaps. Council members said they expect updated financing recommendations to return to the council as funding outcomes are known.