County presents five-year forecast; beach-parking revenue falls short of budget and council opts for rollback on fire fund

Volusia County staff presented a five-year financial forecast at the June 17 meeting that highlighted revenue shortfalls in sales tax and off-beach parking receipts, while the county also voted to use the rollback millage for its fire service fund.

County budget staff told the council that the county’s parking model produced more revenue than last year but far less than the amount budgeted for FY25. “For off-beach parking, we estimate we’ll end the year around $2.9 million; we budgeted $7.1 million,” the county budget presenter said. The forecast showed beach access and parking receipts generating higher revenue than FY24 overall, but the gap between the FY25 budget expectations and updated estimates would increase the general-fund subsidy for beach operations compared with last year.

Budget staff quantified the net effect of changes in beach revenue and the new contract model: the county’s subsidy from the general fund to beach operations is estimated to be about $1.8 million higher than last year, after accounting for contract changes and new parking revenue that was less than the FY25 budget assumption.

Council members and staff also discussed broader revenue pressures: projected decreases in sales tax collections (reflecting recent downward revisions after FY24), changes to state revenue sharing and hospital-district Medicaid contributions that echo state-level adjustments. The manager’s proposed general-fund forecast relies in part on investment income and one-time resources and includes a set-aside for a road program and other targeted items.

On the fire-services funding choice — the council was asked for high-level guidance on whether to present a rollback or flat millage rate for the fire fund to taxpayers. Council ultimately instructed staff to present the rollback rate for the fire service fee; the motion to set that direction passed 6–0. Budget staff noted that the rollback scenario yields about $3 million more in annual revenue for the fire fund than the flat-millage presentation, and that rollback revenue would be used for capital and ongoing operations already reflected in the forecast.

Other actions at the meeting included approval of several routine contract amendments and grant ratifications noted in the budget presentation, and the council’s ongoing direction to staff to return with trimmed budget proposals and final rates in July. The council also discussed reserve balances and a strategy to use debt to finance a sheriff’s administration complex rather than draw $30 million from reserves in the next two years.

Why this matters: the forecast lays out a path for the FY26 budget by clarifying revenue risks and required subsidies; the beach-parking shortfall and the decision about the fire fund affect how much the county will need to transfer from the general fund or reserves to maintain current service levels.

What to watch next: final property valuations on July 1, the staff’s July 22 trim presentation (which will set advertised millage rates), and any midyear adjustments that reallocate one-time resources or amend revenue expectations.