Blueprint IA adopts balanced FY2026 budget, authorizes airport minimum revenue guarantees and a new affordable‑housing gap fund

The Blueprint Intergovernmental Agency on May 8 approved a proposed fiscal year 2026 operating budget and five‑year capital improvements program, authorized the city to administer a minimum revenue guarantee program to recruit new air service at Tallahassee International Airport, and added an annual $250,000 allocation to create an affordable housing gap finance incentive program.

The board approved staff recommendation Option 1 (items a–c) and accepted an amendment (d) to task the Office of Economic Vitality with developing an affordable housing gap finance incentive program and to include a $250,000 allocation for the current fiscal year. Commissioner Maddox made the motion; Commissioner Minor seconded. The roll call vote was 10 in favor, 2 opposed (Commissioners Caban and Proctor).

The budget staff described the FY2026 proposal as balanced and focused on keeping construction on schedule. "We're pleased to bring you a balanced budget that maintains the momentum on the projects that we have going on with the Blueprint Intergovernmental Agency," Artie White said during the workshop. Staff said the FY2026 infrastructure allocation totals roughly $98 million, with about $87 million targeted for regional mobility and gateway projects; over the five‑year planning period, staff projected almost $150 million in local construction expenditure to 2030.

Autumn Calderon, who led the infrastructure presentation, highlighted multiple active projects: Orange Meridian Park (groundbreaking held the same day), Market District Park and Northeast Park under construction, and other work on the Capital Cascades Trail and Lake Jackson Greenway. Calderon noted prior board decisions to advance‑fund projects and to approve financing plans that enabled current construction activity, and she said the agency expects to pursue another bond issuance in 2026 to support the work.

Keith Bowers, Director of the Office of Economic Vitality, presented the economic development components of the proposal, including a proposed FY2026 OEV operating budget of about $3.94 million, a $1.2 million allocation to the MWSBE program, a $200,000 update to the supplier diversity study, and capital allocations to the Future Opportunity Leveraging Fund and other economic programs (about $4 million projected over five years). Bowers explained a proposed air service incentive and capacity subproject to catalyze opportunities at the Tallahassee International Airport (TLH).

Bowers described minimum revenue guarantees (MRGs) as a community‑sponsored financial tool that "guarantee an airline a minimum revenue amount for each new route over a defined term, typically not exceeding 24 months," and he cited FAA policy guidance allowing community financial support for route recruitment. Staff said FAA prohibits the use of airport operating revenues for MRGs, so the city would administer any contracts and the proposed funds would be provided from Blueprint allocations designated for economic development. The IA staff requested a FY2025 budget amendment of $670,000 and a recurring annual allocation of $670,000 for the remainder of the 15‑year life of the Blueprint program (a total of $10 million over the period) to seed the MRG reserve.

Airport Director Pollard answered board questions about program mechanics: unspent local MRG dollars "would roll over," he said, and individual agreements would be negotiated with carriers and administered by the city. Pollard said the airport is pursuing related capacity and facility work — including steps toward an international processing facility and a future Foreign Trade Zone — and is engaging consultants and regional partners to support route development.

Board members discussed program risk, oversight and expected returns. Some directors described the MRG as a necessary tool to remain competitive with peer midsize airports; others pressed for safeguards and the ability to revisit funding annually. Legal staff and presenters clarified that the annual budget process gives the IA board the option to discontinue funding in subsequent budgets.

Commissioners also debated transparency and cost controls in the CIP. Several directors pressed staff for clearer, line‑item estimates and for regular reporting on project cost changes; staff said the IA procurement policy and the interlocal agreement list of projects enable the agency to advertise, bid and award contracts for preapproved scopes, and that major changes would return to the board for direction.

On affordable housing, Commissioner Maddox proposed adding a $250,000 annual allocation to create an "affordable housing gap finance incentive program" under OEV's incentive grants and programs; Maddox moved the amendment and asked staff to return with program parameters. The board adopted the amendment; staff noted OEV would not use the funds for direct rent subsidies and that details would come back as a separate agenda item.

The board also authorized staff to advertise awards for construction contracts for Northeast Gateway and Willoughton Boulevard Phase 2, and to advertise contracts for design of Airport Gateway Phase 2 (part of the Option 1 package). Staff said two public hearings are required before final budget adoption: a Citizens Advisory Committee hearing on Aug. 28 and a final IA board hearing on Sept. 18, 2025.

The IA's vote on the package was recorded by roll call. Mayor Dailey, Commissioners Matlow, Porter, Richardson ("reluctantly, aye"), Williams Cox, Cummings, Maddox, Minor, O'Keefe and Welch voted in favor; Commissioners Caban and Proctor voted no. The motion passed 10–2.

What the vote changes: the board did not adopt specific contract awards at the workshop; it approved the budget and gave staff authority to advertise and, where within the approved project list and available funding, advertise and award per procurement policy. The MRG seed funding request (the $670,000 FY2025 amendment and the recurring $670,000 annual ask) remains a staff proposal to be incorporated into the budget process; the board approved the overall package that includes direction for those allocations and the added $250,000 affordable housing allocation, with details to follow.

Next steps: staff will return with program parameters for the affordable housing incentive, proceed with procurement steps for the gateway and boulevard projects if funds and procurement results allow, and hold the two public hearings (Aug. 28 and Sept. 18) required before final budget adoption.

Votes at a glance: The IA approved staff recommendation Option 1 (items a–c) with an added item d to authorize OEV to develop an affordable housing gap finance incentive program funded at $250,000 annually (budget amendment for FY2025). Motion by Commissioner Maddox; second by Commissioner Minor. Roll call: 10 yes, 2 no.

(Reporting note: direct quotations and attributions are drawn from the meeting transcript of the Blueprint Intergovernmental Agency budget workshop, May 8, 2025.)