High Springs presents proposed 2026 budget; no millage increase proposed as FRS, benefits eat most gains

At a budget workshop the High Springs City Commission reviewed a proposed fiscal 2026 budget that does not recommend a property‑tax (millage) increase but sets a higher maximum to preserve flexibility if costs change. The draft includes a 3% across‑the‑board pay increase and several targeted adjustments, while rising Florida Retirement System (FRS) and health insurance costs consume most of the additional revenue.

The finance presenter said, “we are not proposing an increase to the millage,” and added that the commission will be asked to set a maximum millage rate later to preserve the option of a small increase if needed. The presenter identified a $424,767 rise in ad valorem revenue available to the city, but said “a lot of the additional money that we get from property tax… gets eaten up by FRS, health insurance, the cost, and the rising cost of things.”

Why it matters: the draft keeps the city’s tax rate essentially flat while proposing wage increases intended to keep staff competitive. If retirement and insurance costs continue to climb, the city will have limited discretionary revenue even after the ad valorem increase.

Key details from the draft and discussion: - Raises and benefits: The budget includes a 3% raise for staff and the police department. The presenter said a market increase for police recruitment and retention was included but declined to discuss negotiation details in public because collective bargaining was ongoing. - FRS and retirement: The presenter reported that “FRS, the high risk was increased up to 35.29%, and the regular was went up another point 4%,” adding that the FRS increase alone consumed a substantial portion of the new revenue. - Revenue items: The presenter listed major revenue categories—sales and use tax, franchise fees (such as Duke Energy), licenses and permits, intergovernmental revenue (state revenue sharing), charges for services, fines and forfeitures, rentals and sports fees, interest and miscellaneous revenue. FEMA reimbursements were projected to drop, producing an apparent decrease in “miscellaneous” revenue absent a storm. - IT reallocation and transparency: The city reallocated previously centralized IT costs into department line items to show department‑level IT spending. The presenter said that change was made “so you got a better picture of what each department cost to run.” - Special magistrate: Code enforcement hearings and the red speed camera program drove the creation of a special magistrate contract that “has already proved to be a little bit more expensive than what we were anticipating,” the presenter said, so the budget includes an educated estimate for that contract. - Departmental line‑item changes: Many departments showed minor increases or decreases; the presenter repeatedly noted the draft mirrors last year’s budget except for specific line items (e.g., election costs, software, wireless moved out of IT and into departments).

Discussion and next steps: Commissioners asked clarifying questions about development fees, fee schedules and property parcels the city holds. The presenter said the numbers will be tweaked and that the commission will set a maximum millage rate on a future agenda (the presenter said the item is scheduled when the commission will “set the maximum millage”). The presenter also said the city will continue refining the draft ahead of budget hearings in September.

The budget workshop produced direction for staff to return with additional details and did not record any formal votes on the budget at this session.