County revenue rise outpaced by constitutional officers' requests, creating a budget gap

Seminole County budget staff told commissioners May 20 that projected FY26 general fund base revenues total $347.2 million, with a $16.2 million increase from an estimated 6.5% rise in property values.

That revenue gain, county staff warned, will be largely consumed by constitutional officer budget requests already submitted—most prominently the sheriff’s proposed $6.2 million increase—leaving limited flexibility for other county operations, capital needs or reserves.

The presentation by Timothy Jeks, director of the Office of Management and Budget, outlined the county’s five largest general-fund revenue streams: ad valorem property tax (77%), half-cent sales tax (9%), state-shared sales tax (4%), utility tax (3%) and communications services tax (1%). Jeks said the FY26 base revenues represent a 3.8% increase over FY25 and that no one-time revenues are assumed for FY26.

“We updated this morning based on the property appraiser’s estimate of 6.5% growth, and that will generate an additional $16,200,000 going into fiscal 26,” Jeks said.

Nut graf: Why it matters — Commissioners must reconcile increased, but limited, recurring revenue with large mandatory and requested expenditures. With constitutional officer requests and ongoing obligations rising, the board will face choices among program cuts, use of reserves or raising revenue.

County staff provided an early tally of budget pressures: the constitutional officers’ requested allocations would amount to roughly 66% of projected general fund revenues. Jeks highlighted obligations that are difficult to cut—debt service, contributions to community redevelopment agencies (CRAs), SunRail obligations, maintenance of the 800 MHz radio system and insurance costs—and noted a set of unfunded mandates estimated at about $9.7 million.

Commissioners and the county manager signaled urgency. Commissioner Lockhart pointed out that the sheriff’s requested increase matches almost exactly the full property-tax revenue gain, calling it “the elephant in the room.” Lockhart and others said that even after aggressive departmental efficiency efforts, there is “no way” to achieve the requested increases without either cutting major services or increasing revenues.

County manager Darren Gray and budget staff said they will publish a proposed county manager’s budget May 30 and hold detailed briefings before a June 17 work session. Key calendar items staff flagged include the July 22 trim-rate hearing and first and second public hearings in September.

Jeks said the county is not budgeting any new one-time revenues for FY26 and showed that FY25 beginning fund balance included unusually large one-time revenues in prior years. He also recommended minimum ongoing fleet and facilities investments—about $1.5 million for fleet replacement and $2 million for facilities maintenance—items that are often deferred when revenues tighten.

Ending: The board directed staff to continue scenario work. Commissioners said they expect follow-up briefings on mandatory costs, the composition of the constitutional requests and a clearer inventory of unfunded state mandates before deciding on cuts, use of reserves or revenue options, including millage discussion later in the budget cycle.