Seminole County budget office projects $35 million general-fund shortfall; board shown tax and fee options

Seminole County budget staff told the Board of County Commissioners on Monday that projected general‑fund expenditures for fiscal 2026 exceed forecasted revenues, creating a structural gap the office said would require new revenue or deeper cuts.

Tim Jekes, senior budget analyst in the county’s Office of Management and Budget, showed a two‑year revenue rise of roughly $30.6 million but told commissioners the combination of transfers to constitutional offices and growing nonconstitutional expenses pushed FY26 general‑fund expenditures to about $381 million. "So that's how we get to total FY26 expenditures of 381,000,000, which is a $35,000,000 deficit," Jekes said.

The presentation laid out several revenue options the county could pursue to narrow the gap, with estimated yields and local examples. The budget office included a scenario in which the county levies the full additional 5¢ per gallon local option gas tax allowed by state law — shown in the analysis as roughly $1.1 million per penny, or about $5.5 million at the full 5¢. Jekes also presented a scenario increasing the general‑fund utility tax from the current 4% up to 10%; under the assumptions used in the slide deck that option produced a substantially larger revenue figure in the presentation.

County staff also modeled a half‑mill property‑tax increase as a general‑fund option; Jekes said a 0.5‑mill increase would generate an estimated $27.2 million and used an example household to illustrate impact. For a home with an approximate $550,000 market value and a $300,000 taxable value after homestead and other adjustments, Jekes said the half‑mill would raise the owner’s county bill by about $144 a year.

Commissioners acknowledged the office has been signaling a coming deficit for several years and pressed staff and constitutionals to keep seeking efficiencies. "We knew this was coming," Commissioner Lockhart said in the meeting. Commissioners also noted factors outside the county’s control — rising construction and equipment costs and reduced development activity that constrain property‑tax growth.

The presentation shows the county has already trimmed operating requests and identified $5 million in reductions separate from constitutional officer proposals, but staff said the remaining imbalance would require policy decisions this summer. The board will continue the budget work sessions; staff said the formal millage decisions and trim notices occur later in the summer.

What’s next: Commissioners asked staff to continue identifying non‑recurring and recurring savings, to brief the board on impacts of specific tax options and exemptions, and to return with updated numbers at the July budget meeting.