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Hollywood tentatively adopts $949 million FY2026 budget, lowers operating millage to 7.4293
Summary
The City Commission tentatively adopted the fiscal year 2026 budget and set a lower operating millage during a Sept. 15 public hearing; the package funds capital projects, staff additions and continued investments in public safety and utilities.
The City Commission of Hollywood tentatively adopted its fiscal year 2026 budget during a public hearing Sept. 15 at City Hall and set a tentative operating millage rate of 7.4293, a modest reduction from the previously approved maximum. Assistant City Manager Adam Reichbeck said the proposed budget for all city funds is "just over $949,000,000."
The budget matters because it funds the city’s police and fire services, utilities, parks, capital repairs and a multiyear capital program that leaders say will address long‑deferred infrastructure needs. The city manager described the package as a "structurally balanced budget" and highlighted that the total millage — operating plus debt service — would fall to 7.9606 mills, the lowest level since about 2011.
Key facts: the total proposed FY2026 budget across all city funds is about $949 million, an 11.9% increase over FY2025; the general fund totals about $416 million; the water and sewer enterprise fund is roughly $264 million. The city is proposing a slight reduction in the operating millage (from the commission‑set maximum of 7.4479 to 7.4293) and a drop across the three voter‑approved debt service millages, producing the 0.0526‑mill total decrease. The general fund reserve target remains 17% (about $52.9 million).
Commissioners and staff emphasized new staffing and capital commitments: the budget includes 40 new authorized positions across departments (public utilities, public works, fire prevention, police technology, development services, IT, code compliance and others), $8.7 million in recurring funding for maintenance and replacement of critical capital (roofs, HVAC, parks equipment), continuing buildout for the new police headquarters, and investments in body‑worn cameras, expanded CCTV/license‑plate readers and cybersecurity. Reichbeck said the budget incorporates recently negotiated labor agreements and pension arc obligations.
The downtown Community Redevelopment Area (CRA) transition also appears in the budget. Staff described a County‑City CRA interlocal agreement (ILA) that will result in Broward County being invoiced $3,000,000 per year for five years; those funds, per staff, may be used only for purposes allowed under Florida Statutes section 163.387(6). Assistant City Manager Reichbeck and city staff said allocations for the first year of the $3,000,000 payment were shown in material accompanying the CRA presentation.
During the hearing commissioners and the city manager stressed that the budget remains focused on public safety and infrastructure while maintaining a target fund balance; Commissioner Schuham said improving services can lift property values, which over time helps affordability without sudden tax shocks. The commission set the second and final budget hearing for Sept. 25 at 6 p.m. and instructed staff to publish the budget book and related materials on the city website.
The commission voted unanimously on the related millage and budget resolutions. The proposed reductions in millage and the budget adoption were approved by voice vote. The city clerk and budget office will post the budget book, resolutions and supporting schedules on the city's website ahead of the final hearing.
