Indian River Shores proposes lower millage, projects $10.5M budget and $6.2M reserves

The Town of Indian River Shores on July 24 presented a proposed 2025–26 budget that reduces the town millage rate from 1.3349 to 1.281 and budgets $10.5 million across all funds, with projected reserves of about $6.2 million as of Sept. 30, 2026.

The reduction in the millage rate is intended to limit the average tax increase to roughly 4.2%, town staff said. Heather Christmas, town treasurer, said the total budgeted expenditures across all funds are $10,500,000, down from $12,800,000 in the prior year primarily because one-time projects are finishing.

Town treasurer Heather Christmas said, “This budget does include a reduction in the millage rate from 1.3349 to 1.281.” She told council the decrease in total spending reflects completion of one-time projects — including road work and the public safety building remodel — and not ongoing cuts, and that the proposed plan does not rely on reserves to fund continuing operations.

Why it matters: the town’s primary revenue source is property taxes, and staff said average taxable values rose about 8.73% year over year. By lowering the town millage rate rather than holding it steady, officials said the town will absorb part of that valuation-driven tax pressure. Christmas gave an illustrative homeowner example from the presentation: for a home roughly valued at $500,000, the town-only tax estimate would be about $700 at the higher rate versus about $670 at the proposed 1.281 rate — a savings of roughly $30. She cautioned that homestead-exempt properties may see little change or a modest decrease depending on other taxing authorities.

Details and reserves: staff said the all-funds total of $10.5 million includes general fund, capital, road and ARPA funds. Within the general fund, expenditures are proposed at about $8,100,000 (down from roughly $8.3 million previously budgeted), while projected reserves for Sept. 30, 2026 are about $6.2 million. Christmas said roughly $5,000,000 of that would be unrestricted, unassigned funds (emergency reserves) and about $900,000 is earmarked for infrastructure improvements. She noted the town’s reserves represent about seven months of operating revenues and said the town would use reserves for carry-forward balances only if one-time projects aren’t completed this fiscal year.

“We will not need to change our millage rate or change our current operating plan for 2026,” Christmas said, describing a plan to roll remaining balances into next year’s budget via amendment if projects are not finished.

Public safety and personnel: staff said only two departments show planned expenditure increases in the draft budget: public safety and general administration. The budget places salary increases into a central pool within general administration; public safety compensation was budgeted based on the current status of negotiations and the town said final adjustments will be aligned with any contract outcomes. When asked about pension budgeting, Christmas said the town used the 13% actuarial valuation received in January for pension contribution planning.

Council discussion: Council member Deane thanked staff and stressed the council’s limited authority over portions of residents’ tax bills outside the town (such as county and special districts). Vice Mayor Atwater and other council members praised the town’s fiscal position and the size of reserves, noting that strong reserves provide flexibility after storms or other emergencies. Atwater referenced a discussion at a Florida League of Cities meeting about the practical value of having cash on hand after major hurricanes.

Next steps: because this meeting was a workshop, the council did not take a formal vote. The mayor said the council would be asked at the following regular meeting to tentatively approve the budget and set the millage rate at 1.281; council members present conveyed consensus at the workshop to move the recommendation to the next meeting.

The draft budget presentation also listed ongoing and carry-forward projects that could affect next year’s capital program if not finished this year, including the Beachcomber and Pebble Lane road projects and the comprehensive plan update. Staff said those projects are fully funded in the current fiscal plan and would be carried forward as budget amendments if needed.

Votes at a glance: No formal votes were taken at the July 24 budget workshop. Council provided consensus to place a tentative budget approval and a millage-setting item (1.281) on the agenda for the upcoming regular meeting.

(Ending) The council recessed for a short break and planned to reconvene for the regular meeting that followed the workshop, where members expected to take formal action on the budget and millage rate.