Indian River County proposes $597.6 million FY2026 budget and sets proposed millage rates

Indian River County Administrator John Tkanic presented the proposed FY2026 all‑funds budget of $597,623,132 at the Board of County Commissioners July 9 budget workshop, describing a set of fiscal pressures and modest revenue growth.

Tkanic opened the presentation by warning of slowing economic indicators and changes at the state level that could affect local revenues. He said the county faces weakening building permit revenues and lower impact fee collections and noted an 8.8% increase in the countywide tax roll (8.7% in unincorporated areas) that yields an estimated $8.68 million in new ad valorem revenue for the general fund.

Key figures in the proposed budget included: $156.9 million for the general fund; a recommended general‑fund millage rate maintained at 3.5475 mills (no change from the current year); a proposed countywide aggregate millage of 6.1158 mills; and total recommended staffing changes that net to 26 additional full‑time positions countywide, eight of which are in the general fund. Tkanic also highlighted mandated spending: he said roughly 72% of the general fund is tied to constitutional offices and state‑mandated services and that the sheriffs budget alone represents roughly 52.3% of general fund expenses.

Tkanic walked the board through impacts on taxpayers for example households in Indian River Shores and in unincorporated areas, noting how the boards recommendation to keep the millage rate unchanged can still result in higher taxes because assessed values increased. "Setting a rate above the rollback legally counts as a tax increase even without raising the millage itself," he told the board, explaining the difference between maintaining a current millage and adopting the rollback rate that would hold revenue flat aside from new construction.

The board voted unanimously at the workshop to set the proposed millage rates used for TRIM notices: general‑fund 3.5475 mills, MSTU 1.1506 mills, Emergency Services District 2.3531 mills and the land acquisition bond millage at 0.061 mills. Commissioners and the administrator agreed to continue budget work in August and September and to reconcile outstanding items before final adoption. The board scheduled the preliminary budget hearing for Sept. 10 and the final budget hearing for Sept. 17, 2025.

Tkanic said he and department leaders would continue to refine the recommended budget and produce the monthly and quarterly reports that could prompt midyear adjustments if revenue softening materializes. The recommended budget preserves the countys current general millage for the sixth consecutive year while seeking to manage inflation, mandated growth in retirement and workers' comp costs, and individual department requests.