Sebastian council sets proposed millage at 3.5455% for FY2026; public comment and debate follow

The City of Sebastian City Council on an recorded vote set the proposed millage rate for fiscal year 2026 at 3.5455, directing staff to publish that rate on Truth in Millage (TRIM) notices. The vote was taken after a lengthy discussion among council members about reserves, service cuts and the risk of rising costs for property and liability insurance and union negotiations.

The proposed millage will be advertised as a 17.6% increase over the rollback rate. City Manager Brian Stewart said the rate would allow the city to balance the proposed budget without immediately using an additional $1.3 million of general fund reserves; using the rollback rate instead would have required drawing that level from reserves. “To use the rolled back rate to fund this budget would require using $1,300,000 of general fund reserves,” Stewart said during his presentation on the FY2026 draft budget.

The discussion focused on trade-offs between raising taxes and preserving services. Council member Dodd and others noted the city has recovered from years of underfunding and argued the rate would allow continued investments in roads, stormwater and other maintenance. Council member Jones and Mayor McPartland pressed staff to look for further cuts to lower the final millage before adoption. Stewart and Finance Director Jennifer Smith said staff would continue seeking reductions and noted remaining uncertainties including property and liability insurance and pending union negotiations.

Several council members described limited options to reduce general-fund spending without cutting staff; they said most departments had already pared budgets during recent workshops. “The only thing left to cut would be employees or salaries,” Council member Nunn said, urging caution about forcing deep personnel cuts.

Lance Lunsford, president of the Taxpayers Association of Indian River County, spoke during public comment urging “flexibility” for municipalities to set millage to meet growth-related service needs; he thanked the council and staff for engagement and said the association’s recommendation is to allow cities to set the rate needed for anticipated growth.

After discussion the council voted unanimously to set the proposed millage at 3.5455. The City Manager and Finance Director said they will continue to pursue budget reductions before the final hearings and that two budget hearings are scheduled for Sept. 15 and Sept. 24.

The measure to set the proposed millage is an administrative step to publish the rate on TRIM notices; the final millage rate will be adopted at later budget hearings when the council may lower but not increase the advertised amount without re-notification.