Osceola County presents $2.3 billion recommended FY2026 budget; board approves tentative assessments and millage rates, schedules Sept. 4 hearings

The Osceola County Board of County Commissioners received an overview of the county manager’s recommended fiscal year 2026 budget and, by unanimous votes, approved tentative special assessment rates and proposed millage rates and set the first public hearings for 5:30 p.m. on Sept. 4, 2025, in the Board Chambers at 1 Courthouse Square, Kissimmee.

Matthew Peer, Office of Management Director, told commissioners the county is seeing substantial valuation growth that is shaping the FY2026 budget. “Based on valuations released by the property appraiser on July 1, a 9.9% increase in valuation over the prior years reflected, of which $2,700,000,000 of that was new valuation,” Peer said. He said the recommended countywide budget is just over $2.3 billion at this stage, with roughly $723 million in grant and capital carryforwards expected to be included at the tentative budget, which would bring totals to about $3.0 billion.

The budget presentation emphasized transportation and contractual obligations. Peer said this fiscal year will be the first in which the county “realize[s] the full expense” of SunRail maintenance and noted the county’s Link transit contract support is increasing by about $2.6 million over the prior year. Peer also identified a $12 million SunRail partner obligation and named road resurfacing and other partner agency projects as major drivers of future costs.

Peer described recommended operating and personnel changes. The county manager recommended no new full-time equivalents and proposed a countywide salary adjustment in the 4%–5% range for eligible employees. Personnel services increased by just over $5.5 million in the recommended budget; operating expenditures increased by about $44.6 million, largely because of a hospital local provider participation program treated as a pass-through. Capital outlays are down at this stage by more than $9 million because many ongoing capital projects and grant-funded items are not yet included.

The presentation included several program- and fund-level details: proposed gas tax revenues up roughly $8.3 million with $15.7 million included for road resurfacing and $750,000 for dirt-road paving; transfers out increasing about $44 million to support transportation, road resurfacing and transit programs; and a $15.3 million increase to the reserve stability fund to ensure essential services during potential downturns. Peer also noted the board approved a Southeast improvement district last November to help ensure infrastructure in high-growth areas pays for itself.

Commission discussion was limited. Commissioner Booth questioned the Link contract increase and asked about ridership relative to the higher contract cost, saying, “If we’re paying more and we don’t … have less people or the same amount of people using it … it’s a $6,000,000 price.” County staff said they would provide updated ridership information and are evaluating microtransit as a potential solution.

On special assessments, staff described proposed rates for neighborhood-serving Municipal Service Benefit Units (MSBUs) and similar assessments. Officials noted the Canebrakes community was recently annexed into the City of St. Cloud and will not be assessed. Fire-rescue assessment rates were adjusted based on an updated study and the first year of a five-year schedule; residential fire-rescue assessments are proposed to increase by $66.83 annually, while the transient (tourist) fire-rescue assessment is proposed to decrease by $37.19. Staff also said subdivision pond maintenance, stormwater and streetlight assessments fluctuate year to year based on services needed and electric rates.

The board voted unanimously to approve the tentative special assessment rates and to set the first public hearing on the assessments for 5:30 p.m. on Sept. 4, 2025, in the Board Chambers.

On millage rates, staff said countywide proposed rates remain the same as the prior year even as taxable value rose; several MSBU/MSTU rates and district rates carry different legal voting thresholds for final hearings under Truth in Millage (TRIM) requirements. Peer noted the voter-approved SAFE program (reauthorized in 2024) permits land preservation up to a 0.25 mill limit and requires noticing under the TRIM process. Commissioners were told that some MSBUs previously listed still appear in notices for communities annexed into St. Cloud but will not be assessed.

The board voted unanimously to approve the FY2026 rollback and proposed millage rates for notice and to set the first public hearing to adopt tentative millage rates and the tentative budget for 5:30 p.m. on Sept. 4, 2025, in the Board Chambers.

Next steps described by staff include incorporating any board direction, finalizing revenue projections and financing options, adding capital carryforwards and newly awarded grants, finalizing personnel costs after open enrollment, and updating the tax collector’s submission. Staff said further refinements will appear at the tentative budget and at the final public hearing.

The meeting adjourned after the votes; commissioners will consider final budget and millage actions at subsequent hearings in accordance with TRIM notice requirements.