Hillsborough County outlines FY2026 budget framework and proposes 0.1 mill swap to bolster unincorporated services

Kevin Brickey, Management and Budget, updated the Hillsborough County Board of County Commissioners on June 11 on the county's path to a recommended fiscal year 2026 budget, including a proposed 0.1 millage swap that would reduce the countywide millage and increase the unincorporated millage to help fund services in unincorporated areas.

"We continue to keep in mind our guiding principles, where we are looking to adopt a strategically balanced budget, where recurring revenues and recurring expenses are in line," Brickey told the board during the budget workshop.

The presentation is the third of four scheduled budget workshops ahead of the county administrator's delivery of a recommended FY2026 budget at the July 16 regular meeting. The county administrator also recommended a July 23 workshop focused on transportation, stormwater and the indigent healthcare fund.

Why it matters: the millage swap and one-time funding choices affect property tax bills for city and unincorporated parcel owners, reserve ratios that underpin the county's AAA credit rating and planned capital and operating investments in transportation, fire rescue and other services.

Brickey reported the property appraiser's June 1 preliminary estimates of taxable value: countywide estimated taxable value rose about 6.5%; the unincorporated-area increase came in at about 6.05% (the county had expected 6%). He said the growth rate in assessed and taxable values has decelerated from recent highs as mortgage rates and lingering inflation affect home prices.

On millage, Brickey said the FY2025 countywide millage is 5.6025% and the unincorporated millage is 4.4745. The FY2026 recommended budget will include an additional 0.1 millage swap: a 0.1-mill reduction countywide paired with a 0.1-mill increase in the unincorporated rate. He said the swap—added to prior FY25 swaps and reductions—would reduce countywide property tax revenue by about $17.9 million, increase unincorporated-area revenue by about $10.6 million, and result in a net countywide decrease of roughly $7.3 million. Brickey also noted the county's current AAA credit rating.

Brickey said combined reserves for the two general funds were 23.8% in FY25; he projected the recommended FY26 budget would show combined reserves near 23% with countywide reserves about 24.7% and unincorporated reserves near 20%.

On savings and adjustments, Brickey identified several items that helped fund priorities and one-time investments: reductions in non‑departmental allotments (about $17 million), lower reserve ratio flexibility that freed about $15 million, a nonprofits funding reduction of about $3.7 million (some of which he characterized as one‑time awards in prior years), capital improvement realignments of about $3 million, elimination of a parks debt millage (0.0259 mills) producing about $2.6 million in savings, department operating budget tightening (~$2.5 million), and elimination of 14 long‑term vacant positions (approximately $1.3 million in fully loaded savings).

Planned investments Brickey summarized from the general funds, unincorporated and CIT included about $134 million for transportation, $33 million for fire rescue and emergency management, about $30 million for sheriff capital investments, $10 million for stormwater, $5 million for Veterans Memorial Park, $5 million for a pet resources facility (design money), and about $4.6 million for various parks projects. He noted resurfacing funding of $35 million plus about $5.4 million in fuel tax revenue.

Board discussion highlighted requests for further detail. Commissioner Walston praised the transparency of the presentation and asked for a breakdown of items in the non‑departmental allotments cleanup. "That was a great presentation. Thank you. And that was very transparent to me," Walston said. Commissioner Moles asked whether reserve changes related to hurricane payouts; Brickey said the projected reserve adjustments were intentionally funding one‑time items and were not driven by hurricane payouts.

Next steps and deadlines noted in the workshop: the county administrator will deliver a recommended FY2026 budget on July 16; staff will use the June 1 taxable value estimates in the recommended budget and July 1 estimates will feed the adopted budget; the budget review and adoption calendar includes a tentative July 30 date for millage rate flagging and public hearings scheduled for Sept. 4 and Sept. 18.

Ending: the workshop continued with presentations and a later agenda item on the Water Resources Department's capital program.