Oakland commission approves tentative FY2026 millage at 6.7% and tentative budgets that draw $500,000 from reserves

The Town of Oakland Commission voted unanimously to approve a tentative millage rate of 6.7 and to adopt tentative budgets for fiscal year 2026 covering the general fund, the water enterprise fund, impact fees and the Oakland Charter School. Gabby, the town's director of finance, presented the budget and the proposed millage at the meeting and outlined revenue updates and budget changes since the June workshop.

The tentative general fund budget totals $11,020,949, which Gabby described as including $10,500,000 in operating revenues and expenditures and $500,000 of town revenue used to balance the books. “So the purpose of tonight's meeting is to present to the public the proposed millage and the tentative budgets,” Gabby said during the presentation.

The nut graf: the commission-approved package balances planned spending by drawing $500,000 from reserves and reflects several cost pressures, including higher Orange County Fire Rescue charges and increased health-insurance premiums. Commissioners said the reliance on reserves is a concern and urged tighter spending and a push for more commercial development to broaden the tax base.

Key budget details and changes

- General fund: total $11,020,949; budget built on a 6.7 millage. Property values used in the estimate rose about 9.39% since the prior year, Gabby said. Without the $500,000 reserve transfer the budget would show a deficit of more than $300,000. The presentation noted an updated fire-rescue invoice increased the town's obligation by about $480,000 since the June workshop and that a $200,000 shortfall from a prior payment remained outstanding.

- Employee costs: budget includes a 3% cost-of-living adjustment for all town employees; an 18% retirement contribution for sworn officers (a 2-percentage-point increase from last year); full town payment of employee health insurance premiums, with insurance costs up about 9% from last year; and longevity pay where eligible.

- Police department: staff accounting changes recognize more than $100,000 in off-duty officer revenues (events paid by outside entities) and allocate those amounts so the PD compensation lines do not appear overspent.

- Enterprise (water) fund: total $7,500,000, including approximately $4,300,000 in grants and loans and $3,200,000 in operating revenue. The water fund also includes a 3% COLA for utility staff and projects about $145,000 in remaining funds.

- Impact-fee fund: a little more than $5,000,000 in total; about $3,200,000 allocated for projects and roughly $1.8 million remaining in reserves. Project-specific increases since the workshop include: water plan and pump design from $200,000 to $500,000; Oakland Avenue and Daniel Roadway improvements +$100,000; Catherine Ross Road improvements from $50,000 to $150,000; Winters Landing/Mackay intersection improvements from $300,000 to $350,000; and $75,000 added for East Oakland Avenue sidewalk improvements.

- Oakland Charter School: tentative budget a little over $6,300,000, updated using the July FEFP revenue calculator and current enrollment projections. The school projects an end-of-year reserve of about $25,000 and carries an enrollment figure of 525 students used for planning.

Public comment and commission discussion

Several residents spoke during public comment about taxes, growth and services. Brandon (resident) said his household pays $14,000 a year in property taxes and asked why Oakland has fewer commercial amenities than neighboring communities. “My taxes are $14,000 per year,” Brandon said, adding that he sees a need for more commercial development to ease the residential tax burden.

A resident asked how Orange County Fire Department charges are calculated and whether the town subsidizes services. Commissioners explained the department and the town operate under a joint partnership agreement for the station building and that the county bases charges on property valuation in each village’s trim. A commissioner said the increase in county-provided fire-rescue costs has materially affected the town’s budget.

Commissioner (unnamed) expressed concern about depleting reserves and urged fiscal restraint. “Reserves are for emergencies. They're not for funding your budget every year,” the commissioner said. Another commissioner urged pursuing commercial investment and suggested hiring a grant lawyer to help secure outside funding.

Formal actions and next steps

The commission approved three formal items: the tentative millage rate of 6.7, the tentative budgets (general, enterprise, impact fees and charter school) and the final public hearing date for the FY2026 budget. The commission set the final public hearing for September 23, 2025, at 6 p.m.

Ending: The commission's tentative approvals allow staff to continue refining revenue and expenditure numbers before the final hearing; Gabby said some line items may change with updated year-to-date receipts and that the fire-rescue invoicing situation remained to be clarified. The commission members said they will press for commercial development and tighter spending controls ahead of the final budget vote.

Votes at a glance

- Approve tentative millage rate 6.7: motion carried, unanimous (all voting members present voted aye). - Approve tentative FY2026 budgets (general fund, enterprise/water fund, impact-fee fund, Oakland Charter School): motion carried, unanimous. - Approve final public hearing date for the FY2026 budget: motion carried, unanimous; hearing set for 09/23/2025 at 6:00 p.m.