Bay County commissioners keep millage rates flat after debate over fire equipment purchases

The Bay County Board of County Commissioners voted unanimously Sept. 3 to hold the county'wide millage rates at current levels for fiscal year 2026 and to adopt the tentative FY26 budget after county staff offered a reduced equipment plan for the county'run fire service.

The decision follows public comment from resident Arthur Arackelion and an extended discussion among commissioners about aging fire trucks, reserve policy targets and alternatives to a one-time large tax increase. Miranda (staff member) told the board the proposed incremental millage increase the county had initially considered for the unincorporated-area fire Municipal Service Taxing Unit (MSTU) was 0.123 mills, which she said would raise about $1.6 million for fire services and would increase the average unincorporated Bay County homeowner's bill by roughly $27 a year.

Why this matters: Commissioners said the county faces a multi-year replacement need for dozens of aging fire vehicles, some dating to the 1980s and 1990s, and that failing to act could affect emergency response and insurers'' ISO ratings for homes. At the same time, several commissioners emphasized concern about raising taxes amid rising household costs and urged alternatives such as multi-year purchasing plans, pursuing grants and finding in-house savings.

Key facts and decisions - Millage rates discussed: general fund 5.4362 mills; mosquito control 0.2 mills; MSTU fire was presented in two scenarios'an initial proposed MSTU fire rate of 1.503 mills and an alternative holding the MSTU at the current 1.38 mills. The aggregate millage totals quoted were 7.1392 mills (initial) and 7.0162 mills (no-increase option). The aggregate rollback rate cited was 5.9982 mills. - Public-comment highlight: Arthur Arackelion of Panama City Beach asked why single-family homeowners have borne outsized property tax increases since Hurricane Michael. - Fire equipment and reserves: Staff said the larger equipment plan would have required roughly $13 million in apparatus purchases; under the no-increase option presented as a 'Plan B' the capital purchase for fire was reduced to about $6.7 million and the fund's reserves would be drawn down below the level established in the county's reserve policy by roughly $202,150,000 (amount provided by staff as the approximate reduction relative to the reserve policy baseline). Staff also listed dozens of apparatus by model year during discussion to illustrate fleet age and risk to service delivery. - Budget totals: Miranda said the total FY26 all-funds budget under the adopted millage is $734,395,844; all funds less transfers total $699,313,607 (a 13.85% increase over last year, the staff presentation said). The special revenue line for fire services was reported as $11,417,111 after the reduction in apparatus purchases.

Commission discussion and alternatives Commissioners who opposed an immediate larger millage increase urged a phased, multi-year approach, more aggressive grant-seeking and internal savings measures. One commissioner proposed more frequent (quarterly) year-to-date budget reporting to the board and suggested creating an in-house facilities/maintenance team to reduce contractor markups on small projects. Commissioners also discussed centralized purchasing to capture better pricing and the potential of leasing or acquiring used apparatus if available sooner or at lower cost.

Chairman Moore underscored the operational risk posed by the oldest vehicles and said failing apparatus could 'affect insurance ratings on houses' if emergency response capacity were diminished. Miranda and other staff noted statutory and procedural limits on making purchases: staff must have an appropriation in hand before committing funds to vendors.

Votes at a glance - Motion (early item): 'Do not increase the tax; pursue Plan B' (motion text read by board). Outcome: passed 3-2. Roll call recorded Yes: Commissioner Raffield; Commissioner Crosby; Commissioner Peace. No: Commissioner Carroll; Chairman Moore. (This vote led staff to present the lower-cost Plan B.) - Final millage action: Approve current-year millage rates with no increase (general 5.4362; mosquito control 0.2; MSTU fire 1.38; combined 7.0162 mills). Outcome: passed 5-0. Roll call: Commissioner Raffield Yes; Commissioner Crosby Yes; Commissioner Carroll Yes; Commissioner Peace Yes; Chairman Moore Yes. - Budget adoption (tentative FY26 budget as revised to reflect Plan B reductions): Outcome: passed 5-0. Roll call: Commissioner Carroll Yes; Commissioner Crosby Yes; Commissioner Raffield Yes; Commissioner Peace Yes; Chairman Moore Yes.

Public participation One member of the public, Arthur Arackelion, spoke during the public hearing and during the second, new public hearing after the board selected the no-increase option. He described long-term local property-tax increases on his Panama City Beach home since 1998 and asked how citizens can engage with county budgeting. County staff identified the county's Citizens Academy and the baycountyfl.gov site as starting points for public engagement.

What's next The board adopted the tentative millage and the tentative FY26 budget on Sept. 3; staff said at the meeting that another public hearing will be required for final budget adoption and that staff will provide the date and materials to the public. Commissioners directed staff to continue exploring grant opportunities and alternative purchasing strategies and asked for more detailed, periodic budget reporting.

Sources: Meeting transcript of the Bay County Board of County Commissioners special meeting, Sept. 3, 2025; presenters and commissioners as attributed in the transcript.