The Pensacola City Council on Sept. 10 held a special meeting and public hearing to adopt final millage rates and the city’s fiscal year 2026 budgets, approving the city millage and two budget resolutions by a 5-0 vote.

The hearing opened with a reading of Truth in Millage (TRIM) requirements and Florida Statutes §166.241, including a required public explanation of any proposed increase over the rollback rate. The council adopted a proposed final city millage rate of 4.2895 mills and maintained a 2.0 mill rate for the Downtown Improvement District; the record states this constitutes roughly an 8.06% increase over the aggregate rollback rate of 4.0883.

Finance Director Amy Loboi told the council the budget process began in January and moves through workshops and public hearings before final adoption. “The reason that the we need the increased funds, is to maintain the services and to meet the increased costs,” Loboi said, citing pay adjustments for first responders as a significant driver. She said firefighting starting pay rose from about $34,000 to about $43,000 and police starting pay rose from about $43,000 to $52,000 since the city began raising wages, and that staff remains behind peer-group targets.

Loboi summarized other cost pressures: vehicle maintenance for the fire department up about 126% since 2021, maintenance for the police fleet up about 103% over the same period, repairs at parks and community centers up about 68%, property insurance costs in the general fund up roughly 53% (about $1.2 million), and increased communications costs tied to emergency radios and city security cameras.

Two members of the public spoke during the hearing. Resident Zach Odom asked whether the action was a property tax increase and whether new construction (such as recently announced hotels) affected the calculation. Loboi explained that the rollback-rate calculation treats new construction as the only additional tax base in a hypothetical rollback and clarified how the rollback rate is defined under state law.

Dr. Gloria Horning criticized the overall tax and fee environment for residents with limited incomes and urged the council to prioritize other revenue sources rather than raising tax burdens. Council President Moore responded to public concerns about stormwater charges, saying the council did not raise stormwater fees in this budget cycle and that the adopted millage rate has been the same since 2012.

Council members who spoke expressed support for a balanced budget while noting continuing concerns. Councilman Bair thanked staff and said he remained concerned about the transfer from Pensacola Energy to the general fund and preferred a fixed transfer amount rather than a percentage. Council members also discussed the need to remain competitive on wages to retain firefighting and other operational staff and noted the limited share of the overall property tax bill that goes to the city compared with the county and school district.

Votes at a glance

• Resolution 2025-64 — Finally levying an ad valorem property tax for the City of Pensacola and the Downtown Improvement District for 2025. Motion moved by Councilman Bair, seconded by Councilwoman Breyer. Vote: 5–0; outcome: approved.

• Resolution 2025-65 — Adopting a final budget for the City of Pensacola for the fiscal year beginning Oct. 1, 2025. Motion moved by Councilman Bair, seconded by Mr. Burrell. Vote: 5–0; outcome: approved.

• Resolution 2025-66 — Adopting a final budget for the Pensacola Downtown Improvement Board for the fiscal year beginning Oct. 1, 2025. Motion moved by Councilwoman Breyer, seconded by Councilman Wiggins. Vote: 5–0; outcome: approved.

Because the meeting was convened under TRIM rules for millage/budget adoption, the council took no other business and adjourned after the votes.