Margate sets preliminary millage ceiling at 7.5389; commissioners seek lower CRA contribution in FY2026 budget workshop

City of Margate officials on July 9 reviewed a proposed fiscal year 2026 budget and set a preliminary millage ceiling of 7.5389 by commission consensus, while asking staff to pursue a reduced tax‑increment contribution to the Community Redevelopment Agency (CRA) that officials said could free roughly $1.3 million for city use.

Finance Director Ishmael Diaz and Budget Manager Dacia Burke led a presentation that placed the proposed total FY2026 budget at about $255 million and the proposed general fund at $85.3 million. Burke said the total millage proposed for FY2026 is 7.5389 "and that's a reduction of 0.0278, which is approximately $140,000," and that the operating millage has remained at 7.1171 since FY2020. The staff presentation used June 1 Broward County property appraiser values as the basis for revenue estimates; staff showed an estimated 6.5% increase in taxable value that underlies projected ad valorem revenue.

Budget highlights presented to the commission included a proposed $80,000,000 allocation from a water/wastewater bond series for multi‑year projects: $10 million for water line replacement, $55 million for aeration upgrades at the wastewater treatment plant, and $15 million for headworks upgrades. Burke said the FY2026 proposed budget totals $255,000,000, a decline of 11.63% from the FY2025 amended budget driven largely by timing and reductions in capital improvement fund spending.

Staff outlined general fund capital requests totaling about $1.8 million for FY2026. Items itemized in the presentation included $656,000 for police equipment, $674,000 for fire equipment, $69,000 for information technology, $278,000 for public works and $155,000 for parks and recreation requests. Parks projects discussed as rebudgeted items included a pedestrian bridge from Firefighter Park to Winfield Boulevard, median beautification across the city, and remaining balances on parks bond projects including Oriole Park and Centennial Park.

On the Community Redevelopment Agency, the commission asked staff to research reducing the city's tax‑increment financing (TIF) contribution from the current level to about 80%. The manager and CRA representatives said the CRA has cash on hand and budgeted projects but that lowering the city's contribution to 80% could free approximately $1.3 million. The commission directed staff to prepare an interlocal/ILA to effect a reduced contribution and asked staff to report back; CRA leadership indicated they had already discussed the possibility and considered 80% feasible.

Commissioners also raised line‑item questions and operational notes during the workshop: the presentation showed that police and fire together account for about 55% of general fund expenditures; staff noted the city will continue conservative budgeting practices and that the proposed budget includes a $4.5 million conservative deficit placeholder that the city typically closes with actual revenue performance and year‑end adjustments. Specific operational topics raised by commissioners included IT cybersecurity funding, commission event and membership budgets, vehicle leasing accounting, parks median landscaping funding (the manager said $500,000 is budgeted for Rock Island Road landscape work), and planned improvements to audio‑visual systems in the commission chambers.

The commission set required public‑hearing dates by law: the first budget hearing is scheduled for Wednesday, Sept. 10 at 5:01 p.m., and the second public hearing for Wednesday, Sept. 17 at 6:00 p.m. The commission took consensus to set the millage ceiling at 7.5389 (the chair conducted a verbal roll call and commissioners confirmed support) and to pursue staff research on reducing CRA TIF contribution to 80% for board consideration.

Staff emphasized that figures used in the presentation derive from June 1 property-appraiser data and that final numbers may change when July updates are released. The manager and finance staff said they will incorporate any commission direction into the September budget submittal and follow up with the commission on CRA ILA options and the details of any changes to program and capital priorities.