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Safety Harbor sets FY26 millage rate at 3.95 mills after extended debate
Summary
The Safety Harbor City Commission voted 5-0 to set the maximum fiscal year 2026 millage rate at 3.95 mills, choosing to use reserves rather than lower the rate to the rollback figure now amid uncertainty around future costs and state-level changes to municipal revenue.
The Safety Harbor City Commission voted 5-0 to set a maximum millage rate of 3.95 mills for fiscal year 2026 during its regular meeting, with commissioners saying the rate preserves flexibility while staff continues work to reduce reliance on reserves. The vote followed a lengthy discussion among commissioners, staff and members of the public about the city’s projected budgets, reserve levels and staffing costs.
Commissioners and staff said the recommended 3.95 mills would allow the city to carry the proposed budget while drawing $646,000 from reserves. Victoria Geely, finance director, told the commission: “Right now, the way we have it budgeted is at the 3.95, and that is using reserves in the amount of $646,000.”
The vote followed a budget workshop held earlier in the day and a request from staff to provide direction to the city manager on the proposed millage. City staff presented comparative scenarios showing that adopting the rollback rate (about 3.6584 mills, as discussed in the meeting) would increase the amount of reserves the city would need to use in FY26. Geely said the rollback scenario would increase reserve use by roughly $538,000 compared with the proposed 3.95 budget.
Commissioners gave several reasons for supporting the 3.95 recommendation. Some said they favored holding the millage steady to avoid immediate tax-rate increases for residents; others said they preferred modest reserve use now rather than raising taxes, while acknowledging that future increases might be necessary. Commissioner remarks emphasized that the city’s use of ARPA and other one-time funds in recent years had distorted year-over-year comparisons and that staffing and contract costs (including law enforcement and fire) were continuing pressures on the operating budget.
Public comment at the meeting focused on employee pay and recruiting. Bruce Hedberg, vice chair of the Finance Advisory Committee, urged commissioners to consider higher rates to address a reported salary shortfall and retention problems, and noted the estimated household impact of higher millage scenarios: “Even if you went from 3.95 to 4.2057 … the average home in Safety Harbor goes up a $121 a year,” he said.
Staff noted that the commission could adopt the 3.95 rate now and still lower the final adopted rate at the September public hearings, but it could not adopt a rate higher than the 3.95 figure after tonight’s action. The commission scheduled the required tentative and final budget hearings for Sept. 8 and Sept. 22.
The 3.95 mills motion carried unanimously, 5-0. The decision sets the maximum rate for public-notice purposes; the commission may adopt a lower final rate but cannot increase above the amount approved tonight.
