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Safety Harbor staff preview FY 2026 budget: no millage increase proposed, focus on reserves and capital projects
Summary
City finance staff outlined a proposed FY 2026 plan that holds the millage at 3.95 mills, proposes cost‑of‑living and merit adjustments and anticipates continued capital spending financed by the infrastructure surtax and pending state appropriations.
City finance staff and the city manager presented an update on the fiscal year 2026 budget process to the Safety Harbor City Commission on June 16, with a preview of proposed assumptions and capital priorities.
Finance staff said the preliminary plan would not include a millage‑rate increase; the city manager indicated staff will propose retaining the current millage of 3.95 mills. Staff proposed a 3 percent cost‑of‑living adjustment (COLA) and a 4 percent merit pool for eligible employees, and recommended a phase 2 implementation of the recent pay study—a 2.5 percent increase at midyear—subject to commission approval. The presentation anticipated no planned benefit changes.
Al Braithwaite, assigned to finance, reviewed timing for the tax‑roll process (the Property Appraiser’s DR‑420 certificate of estimated value) and said the city’s taxable value increased about 7.4 percent year‑over‑year, the largest increase among Pinellas County municipalities for the period cited. He noted the county’s infrastructure surtax ("Penny for Pinellas") is projected to provide about $3.1 million next year, with additional capital funding coming from enterprise funds and potential state appropriations; the staff said a $1.14 million state appropriation was pending the governor’s approval.
Staff discussed capital priorities proposed for FY26: pier and marina reconstruction (previously discussed), a planned dock and piling replacement start in late July, street resurfacing and water‑main projects, stormwater and wastewater facility improvements, and water and sewer renewal projects. Staff said enterprise funds (water, sewer, sanitation) remain healthy and will fund several enterprise capital projects.
The presentation reviewed reserve policy: the city maintains two reserves (an operating contingency and an emergency stabilization reserve) and follows a fund‑balance policy that targets roughly two months of operating expenses and a separate 20 percent stabilization reserve. Staff reminded commissioners that some stabilization reserve money was used earlier for storm recovery and that FEMA reimbursements will be placed back into the reserves when received.
Other budget assumptions described included a 10–10.5 percent projected increase in health‑insurance costs and a 7.25 percent increase included for the Pinellas County Sheriff’s Office contract. Staff said final DR‑420 values will be certified by July 29 and the proposed budget document would be provided by July 15 in advance of a July 21 budget workshop and the legally required August/September public hearings.
Commissioners asked for scenario comparisons to pre‑storm baseline years and for continued review of user fees (fire inspection, plan reviews, marina fees) and alternatives for vehicle procurement and other expenditures. The city manager described organizational re‑alignments planned for FY26—including moving engineering to community development and other internal realignments—and said the goals were improved service, retention and efficient use of staff resources.
No formal budget votes occurred at the June 16 meeting; staff said a proposed budget package will be presented in July for commission consideration and public review.
