City of Homestead adopts FY2026 budget, keeps millage steady; council approves multiple code and fee changes

The City of Homestead City Council adopted its fiscal year 2026 budget and kept the operating millage rate unchanged at 5.9604 mills during a public hearing Tuesday. Council members also approved a package of ordinances and resolutions that update fees, permit schedules and other administrative items tied to the new budget year.

The proposed operating millage — unchanged from the prior year at 5.9604 mills — and the proposed debt millage of 0.2446 mills were adopted by roll-call vote. Finance staff said holding the millage flat, coupled with a 13.2% increase in property values, will generate about $3.84 million in additional property-tax revenue for the city at current values (city values presented as approximately $6.38 billion). The budget uses one-time appropriations of fund balance ($5.4 million) for capital transfers and other one-time items and services.

Why it matters: The budget funds a multi-department spending plan and capital-improvement projects, funds staffing increases and supports citywide utility and infrastructure investments. Council and staff highlighted water and sewer projects, stormwater planning, and prioritized funding for police, parks and enterprise utilities.

Key budget numbers and priorities - Total proposed general fund budget and citywide highlights: staff presented a citywide capital-improvement portfolio of roughly $36.1 million and citywide staffing increases (46 full-time and 5 part-time positions across funds). - Fund balance and reserves: the city proposes $5.4 million in appropriated fund balance for one-time transfers; projected unrestricted fund balance at 09/30/2025 was presented as about $30.5 million (roughly 35% of the FY2026 proposed budget), exceeding the 10% ordinance minimum and the GFOA best-practice guideline cited by staff. - Utilities: stormwater rates approved earlier in the year remain in place; staff presented a proposed 8% increase in city water and sewer rates (in lieu of CPI adjustments) and noted pass-through charges from Miami-Dade County on water (about 2.81% increase) and sewer (reported as a significant pass-through increase) that will be separately considered per statute. - Transfers: the proposed budget includes transfers out of the general fund totaling approximately $5.75 million to other funds, including $1 million to the electric utility, $2.8 million to the CIP fund, and $1.378 million to the new building services fund.

Votes at a glance (summary of actions taken at the hearing) - Adopt proposed operating millage 5.9604 mills and debt millage 0.2446 mills — motion moved by Councilman Roth; roll-call vote: unanimous approval. - Adoption (first reading/ordinance) of FY2026 budget and CIP — roll-call vote: unanimous approval; final public hearing scheduled for September 24 for adoption of any amendments. - Renewal of cyber-liability insurance with Houston Casualty — approved by voice vote (staff reported lower premium and improved terms). - Renewal of general liability/workers’ compensation package (Public Risk Insurance Trust/PIGIT) — approved by voice vote. - Multiple code/fee ordinance second readings approved (building permit fee changes; local business tax receipt inspection fees; zoning/public hearing fees; right-of-way permit fees; water and sewer fees) — second readings carried by roll-call votes as recorded in the minutes. - Resolution affirming that revenues for services rendered outside the municipal boundaries will be recorded in applicable enterprise funds — approved by roll call. - Resolution authorizing an FDLE grant application for drone replacement ($100,000) — approved by roll call. - Resolution supporting capacity improvements to the Turnpike northbound on-ramp at Southwest 300 and related intersections — approved by roll call.

Council discussion points and next steps Councilmembers thanked staff and the finance department for the budget work. Several members stressed the need to preserve fund balance for emergency and capital needs while using one-time fund balance for nonrecurring capital and program starts. Council requested a revenue workshop in the coming weeks to review enterprise collections and other revenue-generation options.

Council also discussed several project-level follow-ups: staff was asked to consider earmarking recent one-time receipts (including a Speedway underpayment amount recently received) as seed funding for Pump Station 11 upgrades and related infrastructure. A workshop on revenue generation and Pump Station 11 design/funding was planned for the early part of the new fiscal year.

All votes noted above were taken during the special-call/public-budget hearing and are recorded in the official minutes. The second and final public hearing on the budget is scheduled for September 24, 2025, where staff will present any late changes and the formal adoption ordinances.

Ending note: With the FY2026 budget adopted and a slate of fee and ordinance changes approved, city staff will now begin implementing the capital program and will return to council with any recommended amendments and the formal closing documents for planned projects.