Eustis sets tentative millage at adjusted rollback after hours‑long budget debate

The City Commission set the city’s tentative millage at 7.3898 mills — the state‑adjusted rollback rate — after extended debate about cuts, reserves and public‑safety staffing. The tentative millage requires only a simple majority under state rules and will appear on the TRIM notices sent to property owners.

Finance staff had read into the record the city’s initial proposed rate of 7.581 mills and explained how that exceeded the rollback rate of 7.0709 mills by 7.21 percent, which under Florida’s Truth in Millage (TRIM) process constitutes a tax increase that must be disclosed prior to adoption. Staff described a budget driven by personnel costs: a 5 percent cost‑of‑living adjustment; a $1,000 flat pay increase for eligible employees; higher health‑insurance and workers’ compensation costs; and investments in capital projects that reduce reserves in some funds.

Commissioners discussed two routes to balance the budget: cut recurring operating costs now or transfer funds from reserves. Staff advised that using reserves to cover recurring operating expenses is not best practice and would push recurring shortfalls into future years; they recommended using reserves only for one‑time capital expenses and seeking a hybrid solution if possible. Staff calculated the full rollback to 7.0709 mills would require about $900,000 in cuts, while the state‑adjusted rollback to 7.3898 mills would reduce the shortfall to roughly $334,000.

During the meeting staff presented a list of candidate reductions that could be combined to close the $334,000 gap. Examples offered included reducing canine obedience classes ($12,000), trimming the Habitat housing rehabilitation allocation by $40,000 (leaving $60,000), postponing a proposed risk‑coordinator position in human resources (salary and benefits just under $76,000), deferring one proposed new police or fire officer (about $95,000), delaying three firefighters (half‑year cost roughly $150,000), and pushing back a proposed life‑safety captain (about $142,000). Staff also listed a set of event/banquet eliminations totaling about $521,000 — a pool of options to reach the target by combining multiple items.

Commissioners and members of the public debated whether to prioritize protecting public‑safety staffing, preserve community programs, or dip into reserves to soften immediate impacts. Multiple commissioners emphasized public safety as a protected area; others urged using reserves to avoid cutting services for residents currently under economic stress.

After discussion, Commissioner Holland moved, Commissioner Lee seconded a motion to set the tentative millage at 7.3898 mills. A roll‑call vote recorded Commissioner Asvadi and Vice Mayor Ashcraft voting “No,” with Commissioners Holland and Lee and Mayor Hawkins voting “Aye.” The motion carried by the required majority. The commission subsequently adopted a tentative budget consistent with the chosen millage while directing staff to return with options for cuts, a reserves transfer, or a hybrid approach so that a balanced final budget can be adopted at a later advertised hearing.

Finance Director Lori Kari summarized key budget figures for the commission: the city faces increased personnel costs and insurance expenses, and staff recommended budgeting property‑tax revenue at no more than 96 percent of the roll for collection rates, per state guidance. Kari estimated that a homeowner with a $200,000 home (minus a $50,000 exemption) would pay about $1,137 annually at 7.581 mills and about $1,061 at the rollback rate, a $76 annual difference.

The commission also adopted the tentative budget resolution required by the TRIM process; staff said the board can revisit line‑item decisions and make amendments before final adoption, but the tentative millage must be set at this hearing to meet advertising deadlines for the final hearings and TRIM notices.