Lake Placid council adopts 3.65-mill rate and approves FY2025-26 budget after debate over reserves

Mayor Holbrook and a majority of the Town Council voted Monday to set a 3.65 millage rate and adopt the town's fiscal year 2025-26 budget, moves supporters said are needed to preserve core services. Council member Charles cast the lone recorded no vote on both measures.

The vote followed more than an hour of debate in which council members, staff and residents weighed using portions of the town's general-fund reserves versus putting the increase primarily on property owners.

Council member Worley urged approval, saying the actual dollar impact is modest compared with neighboring cities. "When you put it down to brass tacks, it's really not that much," Worley said, adding the town must fund public safety and other essential services. Council member Hayes and Council member Everhart joined Worley in voting to adopt the millage and budget; Charles voted no.

Town staff presented the mechanics behind the advertised percentage in the required Truth in Millage notice. Town Administrator Charlotte explained that state law requires comparison to a rollback rate that does not reflect increased property values, producing a larger percentage in legal notices than residents actually pay. The council's action sets the millage at 3.65 mils (an increase of 0.55 mils from the current 3.10), which the town said equates to about a 17.7% tax-rate increase versus last year, not the higher figure that appeared in the legal advertisement.

Supporters of the increase noted the town's revenue constraints, including the effect of state homestead protections on taxable value. Council members said most ad valorem revenue is already committed to public safety and code enforcement; council discussion and staff presentations cited the town's limited revenue elasticity and previously built reserves.

Several residents urged caution about raising taxes on renters and lower-income households. "The landlords will pay the full tilt on this, and they will pass it on to some of the poorest people that live here," said Chet Heath of Sunset Point Drive during public comment, asking council to consider softening the increase with reserve funds.

Council member Charles suggested using a portion of the town's excess general fund to reduce the immediate tax increase. "Rather than an 18% all in one year, we'd make it 10% and take ... $100,000 from the town reserve," Charles said. He voted against the final adoption.

Councilors who supported the higher millage said the town's reserves were built over many years and that the increase would restore fiscal balance and maintain essential services. The votes to approve ordinance 2025-10 (final levy of ad valorem taxes) and ordinance 2025-11 (final budget for FY2025-26) passed with recorded votes: Worley (yes), Hayes (yes), Charles (no), Everhart (yes).

The ordinances take effect according to the dates in the town's adopting language. Town staff said the budget includes planned expenditures for police special details, capital projects and operating needs, and that the council may consider line-item amendments during the fiscal year if necessary.

Why it matters: Lake Placid leaders said the adopted budget and millage rate aim to keep public safety and town services funded while attempting to balance resident concerns about tax increases. The council signaled it will continue to review specific capital projects and reserve use as the year progresses.

Looking ahead: Council members and staff said they will continue public outreach to explain the millage notice and the differences between the advertised rollback comparison and the actual fiscal effect on taxpayers. The town also plans to publish more detailed information showing how the tax dollar is distributed among county, school and municipal taxing authorities.