Highlands County adopts tentative $206.3 million budget and keeps millage at 7.6 mills

The Highlands County Board of County Commissioners on Thursday adopted a tentative countywide budget of $206,333,121 for fiscal year 2025–26 and set a tentative millage rate of 7.6 mills, the board announced during a public hearing at the county administration building in Sebring.

The tentative millage rate of 7.6 mills is higher than the rollback rate of 7.3046 mills, a 6.1% increase from the rollback figure the county calculated, and the board approved the millage resolution by a 3–2 vote. The board also approved the tentative county budget and the tentative municipal service benefit unit (MSBU) budgets for the coming fiscal year.

County Manager David Nitz opened the budget presentation, saying, "The fiscal year 2526 proposed budget. Total amount at this time is 206,333,121." He reviewed major funds, the general fund level and the county's fund-balance estimates, and explained that the general fund as presented yields approximately 2.73 months of available fund balance after excluding grant programs, capital transfers and reserves.

During discussion, some commissioners pressed for a millage reduction because the county's available fund balance is higher than the minimum recommended in policy. One commissioner outlined a proposal to reduce the millage by a quarter mill (from 7.6 to 7.35) and cited projections showing the county could remain above policy minimums even with a reduction; other commissioners argued that uncertainties (including potential increases in health insurance costs, paving needs and state-level changes to property-tax revenue) justify keeping the millage at 7.6 this year.

Several members of the public spoke during the hearing. Resident George Ambrees said a property at 4300 Sparta Road had been recategorized by assessment staff as an institutional use (assisted-living/nursing-home classification), which he said would raise his assessment by about 300% and that he had been unable to obtain timely resolution. "A couple of months ago, I received a letter ... that my property use was an assisted living facility nursing home, and that my taxes, specifically, an assessment, would be going up 300%," Ambrees said. County staff and the board noted the county does not classify building types for tax purposes and described a path for the property owner to pursue permitting and a building inspection to seek a change in classification with the property appraiser.

Another resident, Beth Dagnon of Lake Placid, asked for more transparency on TRIM notices, saying the notices do not currently show proposed fire-assessment and garbage-assessment amounts; county officials said the tax collector has chosen not to include those figures on the TRIM notice. Resident Sean O'Connell asked for clarification about the rollback and current millage; staff and several commissioners explained that the millage is staying at 7.6 mills and that the rollback rate (7.3046) would have been lower because property values increased.

Votes at a glance: - Resolution 2425-170 (tentative millage rate): Adopt tentative millage rate of 7.6 mills for fiscal year 2025–26. Vote: Yes — Commissioners Campbell, Kerouac, Roberts; No — Commissioners Elwell, Tuck. Outcome: approved (3–2). - Resolution 2425-171 (tentative budget): Adopt tentative county budget of $206,333,121 for fiscal year 2025–26. Vote: unanimous (5–0). Outcome: approved. - Resolution 2425-169 (MSBU tentative budgets): Adopt tentative MSBU budgets totaling $1,697,427 (including $555,201 in fund balance). Vote: unanimous (5–0). Outcome: approved.

The board set a final public hearing and adoption of the budget for Sept. 16, 2025, at 5:30 p.m. in the same meeting room. County staff also requested and received authorization for the chairman or county administrator to execute documents necessary to complete the millage and budget adoption processes.

The budget hearing included discussion of fund-balance targets and policy. Staff reported an audited fund-balance figure (presented from the clerk's office) and noted a remaining available fund balance of a little over $22 million after planned assignments; specific fund-balance and reserve numbers included an audited fund-balance figure presented as $58,500,000 and an assigned next-year amount of $13,800,000 in the proposed budget. Commissioners noted historic context (the county reduced its millage from a prior level around 8.55 mills over recent years) and cited potential uncertainties that could increase costs, including health insurance and paving needs. The board did not adopt any changes to assessments (fire or garbage) at the meeting.

The county attorney and budget staff repeatedly emphasized that the board's vote on the tentative millage and tentative budget initiates the required Truth in Millage (TRIM) process under Florida Statute Section 200.065 and that a final adoption hearing will follow the statutory notice period.

The meeting record shows the board approved the tentative millage and budgets and closed the public hearing. The board will revisit the millage and budget at the Sept. 16 final hearing, after required public notices are published.