Deltona proposes $245.1 million city budget for FY2025-26 and lowers proposed millage to 6.7

City staff presented the City of Deltona’s proposed fiscal year 2025-26 budget on Aug. 25, outlining a $245,141,106 citywide operating plan, a proposed general fund of $76,928,238 and a tentative reduction of the city’s millage rate to 6.7 mills.

"As of today, the citywide total operating budget for fiscal year 25-26 is set at $245,141,106. The General Fund has increased to $76,928,238. We've been able to, based on revenue estimates received, to reduce the millage from 6.75 to 6.7 mills," said John McKinney, who briefed the commission on the budget calendar and assumptions.

Staff said the proposed budget focuses city resources on capital investment and infrastructure. The capital improvements program (CIP) is shown at just under $78 million, and capital outlay at $8.5 million. Key enterprise-fund changes include a $1,650,000 full replacement of water-treatment membranes and an added $430,000 for house elevation work previously approved by the commission. Staff also reported a $582,000 IT allocation to internal service funds.

Staff described revenue assumptions used in the proposal, including a 10% reduction in anticipated state revenues to be conservative pending final state allocations. The budget team recommended a proposed maximum millage (the TRIM maximum) of 6.95 mills; the commission is being asked to adopt a tentative millage not to exceed that amount. McKinney noted that the commission may increase the adopted tentative millage above the initial proposed rate, but doing so would trigger additional statutory notice and mailing requirements to parcel owners that staff estimated would cost about $31,000 to $35,000.

Commissioners and staff discussed special assessments and stormwater funds as tools for lake and shoreline vegetation maintenance. Vice Mayor Harriet and Commissioner Avila Vasquez raised repeated concerns about aquatic weed overgrowth in several named lakes and asked staff to study a combination of special assessments and stormwater allocations. Staff said 0.1 mills of city ad valorem revenue would generate approximately $567,000 and suggested that modest millage adjustments could be earmarked for lake maintenance if the commission desired.

The proposed parks CIP totals $8,250,000 for next year; staff said $4,000,000 of that figure comes from park impact fees (which generally must be spent within seven years of collection) and $4,200,000 from prior-year appropriations in the general fund. Staff cautioned that impact-fee funds have statutory time limits and should be spent on the intended projects.

Other capital outlay items listed in the budget package include $72,000 for two new code-enforcement vehicles, $80,000 to replace the air conditioning unit at the Volusia County sheriff’s substation (staff said the county facility required replacement), $325,000 of broadband work paid from a CDBG grant, and $25,000 for additional employee computers.

Staff noted timing and next steps: two required public hearings on the budget are scheduled for Sept. 3 and Sept. 15, both at 6:30 p.m. Staff also committed to provide a list of roads slated for resurfacing, a 10-year backlog of audit comments and other briefing materials by the first public hearing on Sept. 3. The commission asked staff to deliver a more detailed parks-event list and to confirm resurfacing locations prior to that hearing.

Commissioners debated whether to reallocate or postpone some projects to fund increased lake maintenance without raising the millage. Some commissioners suggested shifting certain park CIP expenditures or using prior-year appropriations; others opposed reducing parks investments, saying parks and events directly affect quality of life and recruitment of young families.

On procurement policy, the commission discussed implementing thresholds for commission review of purchases over certain dollar limits. Staff said the commission had previously decided to require commission approval for expenditures over $25,000; commissioners asked staff to return in October with options to modify thresholds, including possible differential thresholds for utilities versus administrative units.

The workshop produced no final changes to the proposed millage; staff advised the commission on the costs and procedures for any change before the first public hearing. Several follow-up items were assigned for delivery to the commission by Sept. 3, including resurfacing lists, rate-study updates and a 10-year audit comment summary.