Lynn Haven finance director warns of $3.2 million shortfall; commission weighs cuts, millage and reserves

Lynn Haven — Finance Director Kiki Roman told the City Commission at a budget workshop that the city’s proposed fiscal 2026 budget is out of balance by roughly $3,280,000 in the general fund, and she presented options including spending cuts, shifting funds and changing the millage rate.

Roman said the working draft shows general fund revenues of $22,299,000 against expenditures of $25,579,000. “It is a working document. It is not in balance. It is out of balance in the general fund by $3,200,000,” she said, adding the draft assumes the 4.5 millage rate the commission previously approved.

The most immediate driver of the shortfall is debt service tied to recent bonds. Roman said about $2,769,000 of the gap is debt service tied to bonds the city must pay from the general fund until FEMA reimbursements are received. Excluding that…