Pasco County adopts FY2026 budget, sets aggregate millage at 9.8433 mills

Pasco County commissioners on Sept. 16 adopted the fiscal year 2026 budget and set final millage rates, approving a $2,243,769,298 budget net of interfund transfers and an aggregate county millage of 9.8433 mills. The board reduced the general‑fund millage to 7.4042 mills — a 0.025‑mill decrease from the tentative rate adopted at the first hearing — while keeping the Transportation Trust Fund at 0 mills.

The budget matters because the recommended millage and higher taxable values together produce roughly $42.1 million in additional property‑tax revenue, which the county says will help fund parks capital maintenance, renovate the Hudson Library, provide operational resources for an expanded detention center and support across‑the‑board wage increases. The board also moved $2 million returned by the Pasco County Sheriff’s Office into parks capital maintenance.

Budget director Amy Farrell told the board the package reflects work across departments to find efficiencies, including a 5% reduction in travel, targeted operating‑subsidy adjustments for road and bridge funds, and what staff described as ‘‘good faith’’ reserve reductions. Farrell said staff found over $3 million in general‑fund efficiencies and that the final motions give back ‘‘over $1,400,000 to the taxpayers.’’ She also said the county’s total FY2026 budget as presented is $6,174,119 less than the FY2025 adopted budget and that the five‑year capital plan includes about $411 million in planned capital investment.

The county’s reserves and liquidity drew attention during the hearing. Farrell reported general‑fund reserves of 12.5 percent (about 46 days of operating funds), below the Government Finance Officers Association recommendation of 16.7 percent (roughly 60 days). Farrell said the county was at the 60‑day level before hurricane‑related spending, and noted FEMA and other disaster reimbursements would improve the reserve position when received.

The board and staff outlined how the 0.025‑mill reduction was achieved: department travel limits, refined subsidies to enterprise funds, targeted trimming of reserves where staff expects to return savings to reserves later, and late‑cycle adjustments. Commissioners also discussed increasing an internal travel‑reduction target to generate additional savings; staff estimated raising the travel cut from 5% to 7% would produce further, but modest, savings for the general fund.

The meeting included multiple municipal service taxing unit (MSTU) outcomes the board approved: the Fire MSTU was set at 2.1225 mills (a 5.62% increase from the rollback rate), to fund wage increases for the firefighter union and add four EMS supervisors and four fire arson investigators. The Roads Rehabilitation MSTU was set at 0.4052 mills to generate about $21.6 million for roadway maintenance; the Parks Capital Maintenance MSTU remained at 0 mills. The board also adopted nine voter‑approved debt‑service millage rates that together total 0.2188 mills (a net decrease from the prior year).

During public comment residents urged restraint on tax increases and questioned assessments. Janine Duffy said her property’s just value decreased while her assessed value rose and asked the board to ‘‘consider not just mine, but all properties assessed value and ensure it reflects both the reduction in just value.’’ Kathy Julian asked the board to redirect Mosquito Control District funds into roads or public safety, saying ‘‘I would much rather see that $10,000,000 … go into protecting our roads.’’ Representative Steele, who identified himself during public comment as a state legislator, argued policy changes at the state level and said, ‘‘you shouldn't be taxing people on a value on something that they have not realized.’’

County staff answered technical questions during the hearing: the County Administrator explained differences between ‘‘just value’’ and ‘‘assessed value’’ and noted Florida’s homestead/Save Our Homes protections limit annual assessed‑value increases for qualifying homeowners; staff also said FEMA or other disaster reimbursements would increase the county’s days‑of‑reserves figure ‘‘roughly to 52 days’’ if received.

Formal actions included motions to adopt the millage rates and to adopt the FY2026 budget and related resolutions. The board voted to approve the advertised general‑fund millage of 7.4042 mills and the overall FY2026 budget as presented; the clerk read resolutions adopting the levying of ad valorem taxes and the final budget by title. The board recorded motions and carried votes to adopt the Transportation Trust Fund millage at 0 mills, the Fire MSTU and Roads MSTU rates, the nine voter‑approved debt service millage rates, and the final budget.

What happens next: the resolutions adopted at the hearing provide for final levying of ad valorem taxes and for the FY2026 budget to take effect according to the resolution language. Staff said they will monitor disaster‑reimbursement receipts and departmental performance and return savings to reserves as realized. Public commenters who spoke asked commissioners to continue pursuing tax relief, to reexamine independent taxing districts such as the Mosquito Control District, and to provide clearer property‑tax explanations to residents.

(Reporting: Amy Farrell, Pasco County budget director; Chairman Powell and commissioners presided. Public commenters included Judy Osteen, Janine Duffy and Kathy Julian. Documented authorities and motion outcomes below.)