HEART presents FY26 budget to Temple Terrace; charter amendment to raise transit millage could come back to city

HEART (Hillsborough Area Regional Transit) representatives told the Temple Terrace City Council they are seeking input on the agency’s preliminary FY2026 operating and capital budgets and the five-year capital plan and clarified that the presentation this evening was informational, not an action item.

Scott Drangle, HEART executive director, introduced interim CFO Loretta Kirk and Melanie Williams, HEART’s director of budgets and grants, who presented the numbers. Williams described a proposed operating budget of $125,221,631, a proposed capital budget of $74,463,155, and a combined FY26 proposal of $199,684,786. She said proposed operating revenues assume a 0.5 mill ad valorem (property) levy projected conservatively at 95% of collections and that HEART projects a 5% increase in ad valorem receipts in FY26. Federal operating grants, state operating grants, Fair Fare program revenue and other sources were listed as major revenue streams.

Drangle explained Temple Terrace is a significant origin and destination for HEART: “Over 20% of the weekday ridership on these routes happen within your city limits,” he said, and emphasized the city is served by four HEART routes, including two of HEART’s five highest‑ridership corridors. The presentation noted FY26 assumptions including increased contract services (+26%), fringe benefits (+9%) and a projected balanced operating budget. The five-year capital plan totals $326,974,611.

Council members asked about the proposed millage, how HEART establishes the millage each budget year, and whether HEART could seek community investment tax (CIT) funds. Drangle and staff said the HEART board has approved pursuing a charter amendment to raise the 0.5 mill cap toward 1 mill; that charter amendment requires approval by each HEART member jurisdiction (Temple Terrace, City of Tampa and Hillsborough County) in sequence. If Temple Terrace were presented the charter amendment it would have to approve it for the change to proceed; if the city rejects the amendment it would end the change.

Williams said the FY26 calendar calls for HEART to submit proposed operating and capital budgets to members on or before July 1 as required by HEART charter language; the HEART board had already approved the proposed budgets on June 2 and will later set tentative millage and public hearing dates. Williams also listed revenue assumptions — federal operating grants ($21,816,708), state operating grants ($7,963,611), Fair Fare revenue ($9,720,864), local contributions ($2,491,250) and other income — and noted HEART budgets allowable ad valorem at 95% of prior-year collections under statute.

Council members asked whether HEART is eligible for CIT funds; Drangle said HEART has received CIT funds in the past and that he intended to discuss future requests with the county administrative officer. Trustees and staff emphasized the presentation was informational and that any charter amendment would return later as a formal request for each governing body to vote.