Eustis budget workshop: city managers warn of $461,000 general-fund shortfall as July 17 millage notice approaches

City of Eustis staff told commissioners at a June 21 budget workshop that the tentative general‑fund budget is $461,000 in the red and that the commission must set a millage rate for TRIM notices at or before the July 17 meeting.

The presentation, delivered by City Manager Tom, covered assumptions behind the draft figures: a preliminary 8.72% increase in taxable property value, a 5% cost‑of‑living adjustment for staff plus a $1,000 flat increase for existing employees in the draft, and incomplete state revenue numbers that staff expected to update in mid‑July. Tom said the budget being discussed is “very, very tentative” and stressed the legal requirement that a balanced budget be adopted by the statutory deadline in September.

Staff emphasized the timing constraints. The property appraiser provides an important valuation update on July 1; that figure and later state revenue numbers could reduce the current shortfall. The city manager said staff will recommend a millage be placed on the July 17 agenda to allow TRIM notices to be printed, noting that final millage and budget adoption will occur later in September after commissioners can review updated revenue estimates.

Why it matters: the shortfall and the timing mean commissioners must weigh whether to advertise a tentative millage that preserves optional flexibility (the commission may advertise a higher rate and lower it later), while staff must identify expense reductions or new revenues before the September deadline to close the gap.

Key budget drivers and assumptions City staff told commissioners the draft assumes a 5% salary adjustment (driven in part by contractual obligations for police and fire) plus a $1,000 flat payment for current employees. Health insurance budgeted increases, anticipated state revenue sharing and sales‑tax estimates, and planned capital requests were all cited as material drivers. Staff said some expenses historically charged to the sales‑tax fund were moved to the general fund after review of eligibility (for example annual radio maintenance).

Next steps Staff will return with updated revenue figures after the July 1 property appraiser numbers and after the state releases final revenue allocations. Commissioners were told the July 17 meeting will include consideration of a tentative millage for TRIM; the commission may still lower the rate before final adoption in September if revenues increase or cuts are identified.

Ending note City staff and the commission agreed to continue department‑level review and follow up on both revenue and expense options over the next month. The city manager reiterated the legal requirement to adopt a balanced budget by the September deadline and asked commissioners to direct staff on any high‑level priorities before July 17.