St. Augustine Beach sets tentative millage at 2.6 mills, schedules budget hearings for Sept. 2 and Sept. 22

The City Commission of St. Augustine Beach voted unanimously July 14 to set a tentative operating millage rate of 2.6 mills and a debt-service millage of 0.0841 mills for fiscal year 2026, and to schedule the tentative budget hearing for 5:01 p.m. on Tuesday, Sept. 2. The commission also set a final public hearing for 5:01 p.m. on Tuesday, Sept. 22.

Commissioners voted 5-0 on the millage and on the debt millage during a short special meeting called to set tentative amounts and hearing dates. The commission’s action starts the statutory notice process that triggers the property-appraiser mailings and subsequent public hearings required before final adoption.

City staff told commissioners the recommended budget in the meeting packet assumes a collection rate of 95% and an operating millage at the city’s current capped level of 2.7217 mills, while noting the rollback rate is 2.3675. Staff outlined that both a 2.5 mill rate and the 2.7217 cap would require a supermajority vote—four of five commissioners—to adopt.

Finance staff also described several budget drivers to be refined before September, including an estimated 3% salary pool (2% cost-of-living adjustment plus 1% merit), a projected 12% increase for employee medical/property/liability insurance pending August insurance renewals, and tentative savings from a reduction in the Florida Retirement System employer contribution that were expected to be roughly $50,000. Staff said the city expects to receive a $955,000 state appropriation that will be accounted for as both revenue and expense and therefore net to zero on the bottom line when formalized.

Commissioners discussed guidance for staff on where to aim before Sept. 2. Multiple commissioners said their intent was to work toward a 2.5 mill final rate before formal adoption, while leaving a modest buffer to cover unknowns (insurance, final state numbers and storm-season contingencies). commissioners also asked staff to pursue available Tourism Development Council (TDC) funds to offset park and capital items discussed earlier in the packet.

The clerk staff will publish notices required by the property appraiser’s schedule and post the budget materials for the public hearings. The commission directed staff to hold individual budget-review meetings with each commissioner in August, ahead of the Sept. 2 tentative hearing.

What happened next: Staff will finalize insurance and state revenue numbers in August, meet with each commissioner individually, and return the finalized tentative budget and the public-notice language at the Sept. 2 meeting. The second reading and final adoption are scheduled in the Sept. 2025 timeframe per the schedule set in the meeting.

Speakers quoted or cited in this article spoke at the July 14, 2025 meetings and include the mayor, commissioners, the city manager and finance staff. Quotes are verbatim where indicated.