Tallahassee commission accepts Q2 budget update, approves five capital amendments; flags state property-tax proposals

The Tallahassee City Commission on Wednesday accepted the city’s second-quarter budget update and approved five capital-program amendments, while staff warned state-level proposals to limit or replace property taxes could put large parts of the city budget at risk.

“The positive news is we expect 13 of the 14 funds to be balanced by year end,” City Manager Robert Wigginton told commissioners as he reviewed the fiscal year 2025 status and the assumptions being used to prepare the fiscal year 2026 budget.

The update showed most enterprise and special-purpose funds are on track to balance for FY25. Commissioners approved five amendments, primarily in capital programs, to add a local match for an air carrier apron improvement at the airport, increase funding for electric new-service installations ($2.2 million), adjustments to electric transmission and distribution projects, and funds for facility repairs at the Heilman facility. The commission approved the staff recommendation by voice vote; the motion was made by the Mayor Pro Tem and seconded by Commissioner Richardson.

Why it matters: City staff said property taxes — set at a millage rate of 4.42 mills — remain central to the general fund and to public safety spending. “All of our property tax revenue is devoted to the police department. It represents 95% of our police budget,” Wigginton said, noting that in FY25 the property tax yield was roughly $71.7 million against a police budget of about $75.9 million. Commissioners and staff said proposals at the state level to cut or replace property taxes could leave a large shortfall for core services if alternative revenue sources are not identified.

Staff said the FY26 planning assumptions include holding the millage at 4.42 mills, a 4% pay increase for general employees (including police and fire per collective bargaining agreements), and new staffing requests: about 50 full-time equivalent firefighters tied to opening and expanding fire stations, 20 new police officers as part of a five-year plan to increase officers by 5% annually, and 12 parks and recreation FTEs (six for a new senior center and six for park maintenance). Wigginton warned these and other inflationary pressures produce a preliminary projected General Fund gap of about $3.5 million to $5 million; staff said they will return with a recommended balanced FY26 budget at a June 11 workshop.

On fire services finance, staff said Accenture is under contract and is analyzing data needed to finalize a proposed fire services assessment; work on the fee and related implementation is expected to return to the commission in June. Staff also said improving the city’s ISO rating (from a 3 to a 2) is a strategic goal tied to insurance savings that is informing fire staffing and capital plans.

Grants and hazard-mitigation funding were a focal point. Staff reported the FEMA BRIC grant program is no longer available for the city’s pending applications but said the city has been successful with the Hazard Mitigation Grant Program (HMGP), noting about $6 million in HMGP awards to the city in recent years and roughly $15 million available regionally to compete for after recent tornado and hurricane events. “We can take those same types of projects and applications that would have potentially been eligible for BRIC and then apply them towards HMGP,” a staff speaker said.

Commissioners discussed county-city human services funding administered through the CHSP process. Wigginton and staff confirmed the city’s FY25 commitment of $3.8 million in city funds and $2 million in county funds to CHSP agent agencies will continue; the county is reviewing category changes and will update its board in July. Commissioner Porter said she did not want to see cuts to CHSP categories and urged preserving or increasing funding. “Do not decrease funding and if anything would like to see our increased funding,” Porter said.

Transportation and school-safety concerns also surfaced. Commissioner Richardson summarized a CRTPA presentation on the Safe Routes to Schools initiative and asked staff to return with a plan and funding needs for sidewalks and lower-cost pedestrian improvements near schools. Staff said the city has been expanding sidewalk investments for several budget cycles and is pursuing grants to accelerate work.

Public comment: Marcus Sims, a Tallahassee resident, urged the commission to prioritize mental-health services. “Mental health needs to be the agenda for this month every year and every year after that,” he said during the workshop’s public comment period.

Next steps: Staff will deliver updated revenue estimates after the property appraiser’s June 1 preliminary valuation report and return June 11 with a recommended balanced FY26 budget. Formal budget certification and adoption dates discussed by staff include a certification window roughly 20–30 days after the June workshop and two adoption dates in September.

Action taken: The commission accepted the second-quarter update and approved the five listed amendments; the motion was moved by the Mayor Pro Tem and seconded by Commissioner Richardson and passed by voice vote.