Temple Terrace releases draft FY26 general fund budget with no millage increase, consolidations and proposed consumer credit‑card fee

City Manager Carlos presented the City of Temple Terrace’s draft fiscal year 2026 general fund budget to the City Council, saying the proposal includes no increase in the millage rate and no new full‑time general‑fund positions.

Carlos, city manager, told the council the draft carries a 4% cost‑of‑living adjustment for general employees effective Oct. 1 and a 2% merit budget, and that police and fire contract terms include larger COLAs and step increases. “There is also no increase in millage proposed from this general fund budget,” Carlos said.

Why this matters: the general fund supports public safety and core city services. Carlos said the draft assumes preliminary 2025 taxable‑value growth of 3.43%, which would generate roughly $19,572,378 in ad valorem revenue, and warned that public safety personnel and retirement costs alone are budgeted at about $23,216,340 in personnel costs for FY26.

Key elements and assumptions

- Revenues and timing: Staff said the county property appraiser will submit final taxable values by July 1; the council will review a fuller budget at an omnibus workshop July 8 and a special meeting to set the millage rate is scheduled for July 17. Carlos said the June 20 workshop will cover capital and enterprise funds and a July 15 workshop is available if needed.

- No millage increase and FTEs: The draft proposes no increase in the millage rate and no new general‑fund FTEs. Carlos said some vacant positions remain open from prior years (for example, in dispatch) but that newly authorized FY25 positions already have been filled.

- Wages and benefits: The draft budgets a 4% COLA for general employees and a 2% merit pool; police and fire contracts include roughly 4% COLA plus step increases (police step ~4%, fire average step ~3.7%). Staff projected a 12% increase in health insurance and a 10% increase in property/liability insurance; workers’ compensation was forecast flat.

- Operational changes and efficiencies: The budget continues investments in staff training (including Lean Six Sigma), vendor‑control software to vet insurers and registrations, and organizational changes to strengthen compliance and project management—new or repurposed positions cited included an environmental compliance specialist, a public‑works project manager, an inventory control clerk and an engineer to back up existing staff. Carlos noted the FY25 budget received a Government Finance Officers Association (GFOA) budget award and produced a clean audit.

- Parks and grounds consolidation: The draft proposes moving parks grounds maintenance under Public Works to reduce duplication of equipment and increase capacity without adding FTEs. Carlos said the transition will occur over several months and that staff will provide a transition plan for council review. Council members asked whether consolidation would change maintenance frequency (for example, restroom cleaning or additional mow cycles); Carlos and staff said service details will be part of the forthcoming transition plan and future budgets.

- Credit‑card processing fees: Staff reported growing merchant processing costs and estimated utilities and other city operations pay about $125,000–$140,000 annually in processing fees. The draft recommends passing those fees to customers (a convenience charge) of up to roughly 2.75% on card transactions, with eCheck remaining free; if approved, staff would implement the change Jan. 1, 2026, to allow public notice.

- FEMA and storm recovery: Carlos said Hurricane Milton prompted more than a dozen water‑main breaks, extensive tree and roadway debris clearance, and ongoing infrastructure repairs. Finance staff have processed approximately $4,000,000 in FEMA‑reimbursable costs so far; FEMA reimbursements were conservatively budgeted at $350,000 for FY26.

- School resource officer and other revenues: Carlos said the city expects a contract with Greco Middle School that will bring new revenue and that the first year is planned as a pilot without adding police staff. Exact revenues were “not specified” in the draft and will be brought forward with the contract.

What council asked and next steps

Council members pressed staff on software‑system compatibility (document management and pending ERP selection), asked for a detailed parks transition plan and requested clarification of open positions versus newly authorized positions in the FY25 budget. Councilmember Fernandez asked that any document‑management purchase be reviewed for compatibility with the city’s ERP finalists; Carlos said finance is vetting ERP vendors now.

Carlos told the council staff will refine numbers for the July workshops and will present full capital and enterprise budgets next week. He said final taxable‑value figures from the property appraiser will be reflected in the July 8 omnibus workshop.

No ordinance or budget resolution was adopted at the meeting; the presentation was a draft overview and staff requested council input before the scheduled workshops.