The City of Newberry Commission on Sept. 8 adopted a tentative fiscal year 2025–26 millage and budget and included proposed utility rate increases as part of a $75.1 million tentative budget package. City officials framed the package as a balanced plan to fund major capital projects while keeping the proposed millage lower than last year.
City Manager (name not specified) presented the budget and said, “This budget is balanced. It lowers the property tax rate from last year,” while outlining a series of large projects the commission intends to fund. Assistant City Manager and CFO Dallas Lee told commissioners the tentative millage rate is 5.88 mills, “which is 3.16% more than the rolled back rate 5.6995 mills.”
The nut graph: The tentative budget allocates money for a multi‑million dollar wastewater treatment plant expansion and other infrastructure while proposing modest rate increases for utility customers; commissioners adopted the required tentative millage and appropriation resolutions and set a final public hearing for Sept. 22.
The most important facts: the commission approved a resolution to set the tentative millage at 5.88 mills and a tentative appropriation resolution; both passed unanimously. The tentative budget shows total revenues and other financing sources of $75,124,284 and total appropriations of the same amount. The budget document lists a proposed general fund of $15,277,194 and enterprise funds totaling $52,513,850.
Officials said the city’s taxable property value grew about 8% this year to roughly $884 million and that growth helped keep the millage lower than it might otherwise be. The budget funds or advances several large projects: $10,000,000 in utility work related to the State Road 26 Twin Pairs project, an expansion of the regional wastewater treatment plant to 1,200,000 gallons per day, a planned 0.5 million‑gallon elevated water storage tank east of downtown, a new utilities and public works operations center, and a secondary electric feed to improve resiliency.
To help cover operating and capital costs, staff proposed utility adjustments: residential electric rates up about 4.5% (about $5.31 per month on the average household); residential water rates up about 7.5% (about $4.30 per month); and residential wastewater rates up about 8.5% (about $5.91 per month). City staff said the increases keep Newberry’s rates competitive regionally and help make utility enterprises self‑sustaining.
Public comment and reserves: Several residents asked about the city’s reserves and other uses of funds. One commenter, Randy Oldman, contrasted the city’s stated reserves and asked why a proposed $2.2 million loan to a charter school was needed when the city appears to have large reserves. Dallas Lee responded that the appearance of very large reserves is driven by funds encumbered for the wastewater treatment plant and clarified, “we won't actually end the year with $45,000,000 in reserves. We will end the year with $45,000,000 more in assets for the wastewater treatment plant. So our actual cash reserves are closer to 8 and a half…$9,000,000.”
Other details and process: The commission adopted Resolution 2025‑42 setting the tentative millage and Resolution 2025‑43 for tentative appropriations by unanimous recorded votes. Staff explained the Truth in Millage (TRIM) process required by Florida statutes chapters 129 and 200 and reminded residents the final budget hearing is scheduled for Monday, Sept. 22 at 7 p.m. in Commission Chambers.
Why it matters: The tentative budget funds multi‑year infrastructure projects that officials say are necessary to support growth, public safety and utility reliability; the proposed utility rate increases would affect monthly household bills and are designed to keep enterprise funds solvent while enabling the city to secure financing for critical capital work.
Ending: The commission left the tentative millage and budget in place and scheduled the final public hearing for Sept. 22. Staff and the commission said they are available to answer technical questions about particular line items ahead of that hearing.