Clearwater council adopts 5.885‑mill rate and approves FY2025‑26 operating and capital budgets

The Clearwater City Council on Sept. 17 adopted a 5.885‑mill property tax rate and approved the city's fiscal year 2025‑26 operating budget and six‑year capital improvement program by unanimous votes on second reading. The ordinances set the millage to fund police and fire services, pensions, debt service, road maintenance and capital improvements for the fiscal year that begins Oct. 1, 2025 and ends Sept. 30, 2026.

Kailene Castle, the city's budget director, said the meeting served as "the final public hearing required by Florida statute to finalize the fiscal year 25‑26 operating and capital improvement budget," and recapped earlier public steps in the process: the proposed budget was posted on the city website on June 30, a tentative millage rate was set at the July 10 council meeting, council held a work session Aug. 6, and the first public hearing was held Sept. 3.

The ordinance declaring the millage rate (Ordinance No. 98‑48‑25) sets the levy at 5.885 mills, which the budget director said is a 4.34 percent increase from the rollback rate of 5.6402 mills because of growth in property values. Castle said the ad valorem revenues are needed "to fully fund the operations and the capital costs of general fund departments, which includes our police and fire departments, road maintenance, parks and recreation, planning, libraries, and all city administration." The council then approved the millage ordinance on second reading.

During the public comment period, resident Patrick Raftery of the Countryside area thanked the council and staff while urging caution on the tax impact to households. "My family can accommodate that and I'm sure many families can, but that could be a burden to those families that are going to see an increase that they'll have to struggle with," Raftery said, and suggested the council consider a compromise rate to ease the burden.

Raftery also raised concerns about proposed utility rate increases he said he had seen in the budget presentations, noting the RSA recommendation to raise utility rates to 8 percent annually for five years beginning Oct. 1. He recalled an earlier RSA recommendation in 2022 for a 3 percent annual increase over five years and asked the council to be transparent about how wastewater, stormwater and sewer work would be funded.

Resident Bill Johnson thanked the council for strengthening the management infrastructure and urged clearer, ranked strategic priorities for the city manager's work plan, noting the current list contains 143 projects. "I would argue that providing collaborative guidance and priorities for the city manager is even more important than adopting the budget," Johnson said, and he cited the city's prior $84,000,000 investment in Coachmen Park as an example of a high‑priority project.

Council comment was brief. Council member Cotton thanked residents who spoke and praised staff for tightening the budget, saying, "If we can get towards that rollback rate, if we are able to, find a happy medium, that's where I would love to be." The councilmember also said the council and staff should continue seeking efficiencies to reduce the burden on taxpayers.

On motions, the council approved three ordinances on second reading: the millage ordinance (Ordinance No. 98‑48‑25), the operating budget ordinance (Ordinance No. 98‑49‑25) and the capital improvement program ordinance (Ordinance No. 98‑50‑25). Each motion was seconded and the council recorded unanimous approval. The operating ordinance authorizes the city manager to transfer monies and programs among departments within a fund as provided by Chapter 2 of the Clearwater Code of Ordinances; the capital ordinance approves a six‑year capital improvement program to be reevaluated at the start of each fiscal year and authorizes transfers between projects as necessary.

The approved budgets and millage rate become effective for the fiscal year beginning Oct. 1, 2025. With no further city manager or city attorney reports and brief closing comments from council members, the mayor adjourned the Sept. 17 special meeting.