City manager proposes $250.3 million FY 2026 budget, holds millage at 6.59 mills

City manager (name not specified) told the Winter Haven City Commission that the city’s proposed total budget for fiscal year 2026 is $250,280,102 and that the commission’s millage rate would remain at 6.59 mills.

The proposal, presented at a July budget workshop, would reduce overall spending roughly $45.9 million (about 15.5%) from the current year largely because many one‑time capital projects were completed in fiscal year 2025. The manager described the budget as balanced at the current millage and highlighted investments in public safety, affordable housing, sidewalks and a planned airport master‑plan update.

The tentative budget centers on six strategic pillars the commission adopted earlier: quality of life, community safety, infrastructure, responsible government, environmental stewardship and economic sustainability. The manager said the general fund will continue to support nondepartmental obligations, transfers to smaller funds and grant/aid programs to nonprofit partners.

Key figures and program choices

• Total proposed budget: $250,280,102 (presented as the tentative FY 2026 budget). • Change from FY 2025: presenter said the FY 2026 total is about $45,900,000 less (about 15.5% decrease), mostly because large capital projects were advanced in FY 2025. • Proposed millage rate: 6.59 mills, unchanged since 2022. • General fund: presenter cited both $78.3 million and later a $79.6 million general fund figure while describing revenue and expenditure details. • Ad valorem revenue: $31,500,000 projected for the general fund. • Positions: total authorized city headcount noted as 766; the budget includes 23 new full‑time positions and 6 new part‑time positions (29 total), and the manager later summarized 29 positions (23 full‑time, 6 part‑time) added or funded in the proposal. • Personnel compensation: the manager reported a compensation study by Dr. John Daly and proposed a 5% across‑the‑board increase to entry pay and a 6% adjustment for incumbents to reduce compression; a market adjustment and step plan remain part of the proposal. The presentation noted upcoming contract negotiations with the police and fire unions and emphasized these items were included in the tentative figures but not yet settled through bargaining. • Utility fund transfer: the utility fund is budgeted to transfer 12% of operating revenues to the general fund, a policy established in 2017; that transfer was stated as approximately $6,100,000. • Affordable housing: the budget continues an annual $250,000 contribution to the Winter Haven Affordable Housing Trust Fund and includes $500,000 as seed money for a proposed Community Development Financial Institution (CDFI) with Hartford Winter Haven. • Grants and nonprofit funding: the presenter said 44 agencies will receive grant/aid funding and cited an aggregate figure of $347,000 for the nonprofit grants program for the coming year. • Public safety costs: combined police and fire spending was presented as approximately $34,780,000; the manager said ad valorem revenues do not fully cover public safety costs and estimated a $3,230,000 shortfall relative to the proposed ad valorem receipts. • Fund balance policy: the commission’s policy target is 30% of general fund revenues (with a minimum of 17%); the manager recommended keeping the 30% target and noted an anticipated surplus above 30% at year end.

Capital and special funds

The manager repeatedly distinguished between recurring operating costs (general fund) and large capital projects (construction and special funds). Examples of capital items and construction‑fund projects discussed included Fire Station No. 5 at Lake Hartridge Park (estimated contribution from the city noted in the construction fund), Chain O’ Lakes Park parking expansion (interlocal funding from Polk County sports marketing for roughly half of a $1.2 million project), airport projects funded largely by FAA and FDOT grants, and various streets/complete‑streets projects including design work for Sixth Street Southwest and other corridor signal/timing analyses.

Other operational and policy notes

• Solid waste: rates are scheduled to increase 2.5% on Oct. 1 under existing ordinance; the manager said staff will conduct a rate study in light of Polk County tipping‑fee increases. • Library: cooperative funding changes tied to the county and a new library branch at the Recreation and Cultural Center will increase library revenue; downtown library visitation was cited at about 442,000 in 2024. • Pension plans: the manager reported pension funding ratios (general employee plan ~82.3% funded, firefighter plan ~84% funded, police plan ~85.8% funded) and noted unfunded liabilities. The city’s actuary (Foster & Foster) and its representatives were referenced; the manager and commissioners discussed the long‑term nature of pension funding, smoothing techniques used by actuaries and the risk that liabilities could grow decades out. • OpenGov: finance staff demonstrated OpenGov, a new online budgeting platform the city will publish with the tentative budget to increase transparency and permit interactive views of departmental budgets.

Commissioner questions and staff follow‑up

Commissioners asked for clarifications on: the split between one‑time capital and recurring operating costs; a year‑over‑year comparison of core (non‑capital) operating costs; whether affordable‑housing trust funds could be used for site‑specific infrastructure to support housing projects (the manager said the commission could direct those dollars for infrastructure tied specifically to affordable housing projects, subject to confirmation with staff); and more detail on pension actuarial assumptions. The manager and staff agreed to provide additional breakdowns (for example, bricks‑and‑mortar capital vs. everyday capital/vehicle replacement) at future briefings.

No formal votes or policy changes were taken at the workshop; the presentation concluded with staff noting that OpenGov would go live for the tentative budget and that more detailed water/utility budget items would be presented on August 6.

Ending

The workshop presentation left the tentative FY 2026 budget balanced at the current millage, with staff directed to return with more detailed breakdowns on capital vs. operating costs, additional pension information and the water fund budget on the scheduled date.