City manager proposes 0.273‑mill increase to rebuild reserves after storm losses

City Manager-led staff presented a proposed 2025–26 operating budget at the July 28 Sarasota City Commission workshop that assumes no federal disaster reimbursements and recommends a 0.273‑mill increase in the city’s operating millage to help replenish reserves drained by recent hurricanes.

The budget presentation said the city estimates the three storm events’ combined cost at about $50,000,000, with roughly $38,000,000 of that hitting the general fund. The manager told commissioners, “I want you to know that this budget has been prepared assuming no FEMA reimbursements.” The presentation noted the city already received $7,700,000 from FEMA but did not rely on future federal or state reimbursement in the baseline figures.

Why it matters: City staff say the general fund reserve percentage has fallen from historic levels (generally 20–30%) to under the adopted policy band of 17–25%. The manager recommended a modest ad valorem increase of 0.273 mills — taking the operating millage from 3.000 to 3.273 mills — to generate about $4.7 million and bring the projected unassigned fund balance to roughly 20% of expenditures in year one. Under the recommendation, the median Sarasota homeowner (taxable value $360,000) would pay about $82 more a year, staff said.

Details of the…