Citrus County commissioners give staff preliminary budget guidance; ask departments to limit increases

Erin Doran, Citrus County management budget director, presented the county—s budget development guidelines and a summary of potential state actions that could affect the county—s FY26 budget at the Board of County Commissioners meeting on March 11.

Doran outlined drivers likely to affect the county—s general-fund budget: mandated funding for constitutional officers, debt service, state mandates and reserve requirements. She warned of higher health-insurance costs, an uncertain Florida Retirement System contribution rate and possible insurance premium increases tied to proposed changes in sovereign-immunity caps. She also reviewed state proposals that, if enacted, could reduce county revenue streams (examples included several constitutional-amendment proposals for homestead-exemption increases and a bill to cap millage increases).

The presentation included a working estimate of potential cost increases (examples discussed by staff: a projected 15% increase in county health insurance costs for general-fund–funded employees and a range of retirement-contribution possibilities) and draft development parameters for departments and constitutional officers. Doran said staff would return with a finalized taxable-value growth estimate after the property appraiser issues it and would start capital-improvement planning meetings with departments in April.

Commissioner comments and board direction

Commissioners pressed staff on cost-control options. Commissioner Jeff Kennard said the county should expect to scrutinize a long requests list of roughly 101 proposed new positions and asked department directors or the county administrator to justify each request at future meetings. He also urged staff to seek alternatives for high recurring costs such as the EMS subsidy and recommended tempering the proposed cost-of-living increase.

Board members discussed the long-running issue of residential road resurfacing funding, possible law-enforcement service-tax units (MSTUs/MSBUs) and the need for outreach to city governments before pursuing new special taxing districts. Several commissioners urged a stronger employee-suggestion program and top-down and bottom-up cost-efficiency reviews. Commissioner Diana Finnegan asked department heads to take a "deep dive" on efficiencies and asked for improved public engagement (open houses, Citizen Academy-style sessions and surveys) to inform hard choices.

Consensus guidance

After discussion the board recorded the following working guidance for FY26 development: - Millage: staff should return starting from the rollback millage and present options that reflect growth and inflation. Commissioners expressed a clear preference that the millage not increase; the board signaled consensus to seek a flat or reduced millage as the starting point for proposals. - Cost-of-living adjustment: commissioners signaled consensus for a 2.5% COLA figure to be used for county-funded employees in FY26 guidance. - Constitutional officers: commissioners asked constitutional officers to attempt to limit increases and to submit budgets that reflect reductions or minimal increases where feasible; the board directed staff to send the same guidance and to collect specific proposals from constitutionals. - New positions: the board asked that the county administrator or department directors appear before the board to justify and prioritize new-position and reclassification requests before any are committed as county-funded recurring costs.

What comes next

Doran said staff will take the board—s guidance forward, refine assumptions after the property-appraiser numbers are available and return with the July preliminary budget. She also listed key budget hearing dates: preliminary hearing in July (date to be finalized), tentative September hearing and final budget hearing later in September.

Why it matters

The board—s early guidance frames staff and constitutional-officer requests and narrows choices ahead of the legally required tentative and final hearings. The direction to start from rollback+growth+inflation but aim for a flat or lower millage and the 2.5% COLA both set expectations for departments and the public about the likelihood of service-level tradeoffs if state-level proposals reduce local revenues or if insurance/retirement costs climb.

Speakers

Erin Doran, management budget director (presenter) Commissioner Jeff Kennard, Citrus County Board of County Commissioners Commissioner Diana Finnegan, Citrus County Board of County Commissioners Commissioner Janet Barrick, Citrus County Board of County Commissioners Chair Rebecca Bays, Citrus County Board of County Commissioners Commissioner Holly Davis, Citrus County Board of County Commissioners Steve Howard, county administrator

Discussion vs. decision

This meeting recorded board direction and consensus for budget guidelines; the board did not adopt a final millage or a final budget at this meeting. Staff will use the guidance above to prepare the formal proposed budget for future hearings.

Ending

Staff will return to the board with a proposed budget package after the property appraiser publishes the taxable-value estimate, and with departmental and constitutional-officer budget submissions consistent with the guidance the board provided.