Coconut Creek lays out $217.9 million FY26 budget, keeps millage steady while raising fire and solid-waste assessments

Finance and Administrative Services Director Peter Gay presented the proposed fiscal year 2026 budget and five‑year capital improvement plan to the Coconut Creek City Commission on Aug. 11, describing a $217,900,000 total budget with roughly $22,900,000 earmarked for capital improvements. "The fiscal year 26 proposed budget presented some of its own unique operational challenges and opportunities," Peter Gay said during the workshop.

The proposed millage rate remains unchanged at 6.8988 mills, the presentation said, and the general fund revenue budget is projected at $128,300,000. The budget assumes 514 full‑time equivalent positions citywide and includes a recommended 2.2% cost‑of‑living adjustment for general employees and most sworn and part‑time personnel. Health‑insurance premiums negotiated for FY26 are projected to increase about 8.2% after employer efforts to lower an initial 14.4% proposal.

The commission heard that demand‑driven revenues—shared sales tax, franchise fees, utility taxes and permit fees—are down or stabilizing, and staff balanced the budget by targeting capital and program requests while holding the millage steady. Gay noted a $3.3 million drop in total general‑fund revenues compared with FY25, offset in part by a $2.5 million increase in property tax proceeds tied to reassessments and new construction.

Public‑safety and infrastructure priorities remain central. The budget includes continued funding to complete Fire Station 113 construction, Police Department improvements and Main Street infrastructure and workforce‑housing initiatives. Staff also recommended a 10% increase in the annual fire assessment across property types and a 4.5% increase in the single‑family solid‑waste assessment (to $326.54 annually) to support public‑safety and sanitation services.

Commissioners and staff discussed other line‑items and contingencies: pension contributions to the Florida Retirement System special‑risk category rise from 32.79% to 35.19% (increasing pension costs); proposed capital outlay reductions of about $1.1 million; and planned capital transfers reduced by about $8.6 million because of lower demand‑driven revenue. Peter Gay said staff is prioritizing maintenance‑related capital projects before adding new initiatives.

The workshop also covered program‑level proposals and pilots: an advanced metering infrastructure (AMI) deployment for water meters, conversion of shuttle buses to propane, a citywide food‑waste diversion pilot and additional EV purchases and chargers. Staff said the water and wastewater fund will be closely monitored in advance of a rate adjustment scheduled for June 2026 because county wholesale charges and evolving EPA PFAS requirements may push costs higher.

On governance and next steps, Veronica (finance staff) reviewed the budget schedule: two public hearings are set for Sept. 15 (first hearing to tentatively adopt the budget) and Sept. 25 (final adoption). City Manager Sheila Rose and staff will bring ordinances, fee schedules and any grant or contract approvals to the commission at upcoming meetings.

Votes at a glance

- Revised nonprofit donations list (staff recommendation): approved by consent (consensus approval recorded at the workshop; separate public hearings or formal ordinance votes will follow as required).