Okaloosa County administrator proposes flat millage, commissioners ask staff for MSTU rollback options

The Okaloosa County administrator presented the administrator's proposed fiscal 2026 budget and recommended holding the countywide millage at 3.8308 mills and the unincorporated-area MSTU millage at 0.299 mills.

The budget presentation, delivered by "Mister Halstead," said property values are trending about 6% in 2026 and that the proposed total countywide budget would be about $687 million. Halstead told commissioners the county's unassigned general fund reserves were reported at $20 million at the last audit and the administration is proposing a 3% cost-of-living adjustment for employees. He also said the county is programming $2 million for an enterprise resource planning (ERP) system and about 26 new positions overall, with roughly a dozen funded fully or partially by the general fund.

Commissioner Goodwin urged the board to explore ways to reduce the MSTU millage that pays for parks and stormwater in unincorporated areas, suggesting the county could adopt the MSTU rollback rate this year and pursue user fees such as paid parking at tourist-heavy beach parks and boat launch fees. Goodwin said the board could use roughly $250,000 freed by stopping nonprofit allocations to partially offset an MSTU rollback without harming county services. "I'm not suggesting eliminating it. However, I see an opportunity to do something this budget year to help," Goodwin said.

Commissioner Cox supported exploring user fees but suggested a pilot that preserves free or reduced access for Okaloosa County residents. After discussion, the chair asked whether there was consensus to have staff return with numbers on adopting the MSTU rollback and related options. Halstead said staff would provide that analysis at a future workshop.

Why it matters: the MSTU affects only unincorporated residents and funds local park operations and stormwater maintenance. Adopting a rollback or new user fees would shift how those services are funded and could reduce taxes for unincorporated homeowners while altering long-term revenue available for maintenance and capital projects.

Discussion vs. action: the board did not change the countywide millage during the workshop. Commissioners gave staff direction to prepare numeric scenarios showing the effect of adopting the MSTU rollback rate and to outline potential user-fee options and pilot approaches. No formal vote occurred at the workshop.

What’s next: staff will return with the numbers and options at a later workshop; the board will set a tentative millage and hold two public hearings in September before final budget adoption.