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City presents draft budget framework with capital priorities, proposes keeping millage at 6.25 mills
Summary
City staff presented a draft FY26 budget framework that keeps the millage at 6.25, lists capital priorities including a city‑yard complex and Zephyr Park renovation, and showed per‑percent employee salary costs to inform council’s upcoming decisions on pay increases.
City Manager William Poe Jr. presented a draft budget overview and capital priorities to the council July 14, proposing to keep the millage rate at 6.25 mills while highlighting major capital asks including a new city yard complex, Zephyr Park renovation, and multiple utility projects.
Poe said the proposed millage would produce roughly $10.5 million in ad valorem revenue under current assessed values. He explained the rollback rate would be approximately 6.0848 mills and that keeping the rate at 6.25 mills represents a 2.71% increase in revenue. Staff also reviewed non‑ad valorem revenue forecasts including the local option sales tax and municipal revenue sharing figures provided by the state.
On capital priorities the presentation listed roughly $28 million in projects across governmental, utility and sanitation funds — including a $17 million public works/city yard component, $15 million estimate for Zephyr Park renovations with a planned mix of state appropriations and city reserves, and multiple water and sewer upgrades. Poe said state appropriations and grants (some already awarded) would reduce city shares on certain projects but that design and procurement planning is under way.
On employee compensation Poe provided a planning tool showing that each percentage point of across‑the‑board pay increase would cost about $110,000 total (across funds) if effective October 1, and that council should weigh raises against projected revenues. He recommended council direction on a proposed raise level so staff can prepare the formal budget documents for the August and September schedule.
Council requested more detailed breakout of public‑works governmental line items, confirmed sidewalk project priorities (Airport Road and Sixth Avenue designs underway) and asked staff to prepare a proposed capital financing and prioritization plan for upcoming workshops. City staff will deliver the formal draft budget on Aug. 1 and return in September for the first and second public hearings under the statutory schedule.
