Melbourne council sets maximum proposed millage, directs staff on capital priorities

Melbourne City Council on July 28 reviewed the proposed fiscal year 2026 budget, heard public comment on infrastructure needs and downtown projects, and set a maximum tentative operating millage rate to appear on August TRIM notices while adopting the separate proposed debt-service millage.

The council, at the end of a roughly two-hour workshop presentation by budget staff, signaled consensus to publish the highest of the presented millage options (the “two‑thirds” maximum option), and then voted to adopt the debt-service millage shown in the budget packet. Ross, the city budget presenter, told the council: “The current rate right now is 6.5466. The rollback millage ... is 6.2927. And the proposed millage rate in the book before you ... is 6.6703.” Councilmembers discussed alternatives that would raise more revenue to address roads, deferred machinery and equipment, and other capital needs.

The discussion focused on tradeoffs between maintaining current services and accelerating deferred capital projects. Ross said the draft 2026 general fund budget before council is $120,669,439, up about 6.69% from the 2025 adopted general fund of $113,101,347; the total proposed 2026 budget across all funds is approximately $266,907,000. Staff highlighted main cost drivers: employee compensation increases…