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Clermont council sets proposed 2026 millage rate at 4.59 mils after budget modeling and debate
Summary
After budget workshops and modeling, council voted 4-1 to set the tentative 2026 millage rate at 4.59 mils. Staff warned that long‑term assumptions — especially growth and health‑insurance costs — shape fund‑balance projections and that a too‑steep reduction risks depleting reserves within three years under some scenarios.
The City of Clermont City Council set the proposed ad valorem millage rate for fiscal year 2026 at 4.59 mils on Tuesday, a 4-1 vote that reduces the rate below staff’s earlier recommendation of 4.70 mils.
Finance director Scott Bohr presented the legal timelines and the requirement to file a proposed rate with the county by August 4; he also presented modeling that showed how different millage scenarios and growth assumptions would affect the General Fund and fund-balance reserves over a five‑year horizon. Staff noted that a 1‑mill change is roughly $630,000 in ad‑valorem revenue for the city and that the state-mandated rollback rate was 4.6185 mils in the materials presented.
Bohr urged a cautious approach: under one pro‑forma that assumed 10% annual taxable‑value growth citywide and 12% growth in the CRA, the city would see near‑term operating deficits and be at or below the 25% fund‑balance policy requirement by the third year if recurrent spending continued at projected levels. Council members and residents pressed several budget topics: the cost and structure of a proposed in‑house ambulance service, projected growth from pending annexations and commercial projects, and the use of one‑time fund balance to “buy down” millage.
Public commenters urged both directions: some called for deeper reductions in the millage rate; others warned that lowering rates without sustainable revenue sources would force cuts to services or use up reserves.
After debate, Councilmember Strange moved and the council approved a proposed rate of 4.59 mils (4 votes in favor; Mayor Murray voted no). Bohr said staff will submit the required notice to the Lake County Property Appraiser and will bring the tentative millage and budget back at the public hearings scheduled for Sept. 4 (tentative rate) and Sept. 18 (final rate).
Councilmembers said they intend to continue work on revenue development — including targeted commercial annexations and capital‑project prioritization — to reduce the long‑term tax burden while protecting minimum fund balances. Staff will provide follow‑up modeling as information changes.
