Bay County School Board adopts tentative millage of 5.337 mills and $648.48 million tentative budget

The Bay County School Board on July 31 adopted a proposed millage rate of 5.337 mills and a tentative district budget of $648,478,799.90, following required public notice and a hearing. The proposed millage exceeds the statutory rollback rate by 0.99 percent, the district’s finance staff said.

Jim Stewart, the district finance presenter for the workshop, explained the millage breakdown: 3.089 mills as the required local effort, 0.748 mills as basic discretionary operating millage, and 1.50 mills for capital outlay (local capital improvement). Stewart said the rollback rate — the rate that would generate the same revenue as the prior year after adjusting for new construction — was 5.2845 mills and that the proposed levy of 5.337 mills is 0.99% above that figure.

The board reviewed the tentative budget’s high-level composition: a $344 million general fund (approximately 53% of the total budget), $188 million in capital projects (about 29%), and internal service and special revenue funds making up the balance. Stewart and staff noted the budget includes reserves for health insurance increases, an FTE shortfall contingency, an audit-penalty reserve, and a modest estimated ending fund balance (about $13 million). Stewart also highlighted that capital projects spending had tapered from prior years after a multi-year borrowing program and that charter school pass-throughs and half-cent revenue share affect local capital capacity.

Board members discussed line items and allocations during the workshop portion, asking for and receiving explanations about school supplements (including athletic funding), teacher salary allocations (state-directed teacher-salary-increase funds), charter school capital pass-throughs, enterprise and internal service fund balances, and program carryovers tied to federal grants. Stewart said a portion of the district’s increased tax base in recent years was driven by new construction and post-hurricane renovation and transactions that re-established taxable values.

Formal votes followed the workshop. The board approved the proposed millage rate by separate motion and roll call (5–0). The roll call recorded yes votes from Board Members Moore, Leonard, Chester, Register and Moss. The board then voted to adopt the tentative district summary budget for fiscal year 2025–26 in the amount of $648,478,799.90 by separate motion and roll call (5–0). The board also passed Resolution 26-01 (adopting the tentative millage rates) and Resolution 26-02 (adopting the tentative budget) by separate votes; both resolutions passed unanimously.

Details the board recorded in the hearing: the required local effort is 3.089 mills (the state-determined portion), the discretionary operating millage is 0.748 mills, and the tentative capital outlay millage is 1.50 mills. Stewart and staff noted that if the district did not levy the discretionary capital millage it would forgo the compression supplement adjustment. The district’s proposed total millage (5.337 mills) is 0.026 mills higher than last year’s total levy of 5.311.

Board members were told how the proposed rates affect a typical homeowner: at a taxable value of $100,000, the change would amount to roughly $2.60 annually according to the materials presented.

Next steps: state law requires the district to advertise the tentative millage and hold a final public hearing before adopting a final millage and budget. The board scheduled a follow-up budget workshop on Aug. 26 and the final public hearing and adoption on Sept. 11.