Oakland Park staff outline FY2026 budget process and fiscal pressures, including proposed BSO increase

Assistant City Manager Andrew Thompson told a Zoom audience that the purpose of the meeting was to walk through the budget process, strategic plan linkage and the city's fiscal challenges as staff prepares recommendations for fiscal year 2026.

The presentation laid out key dates and legal constraints for Oakland Park's budget process, and explained how property taxes, non-ad valorem assessments and enterprise funds are set. "All cities in Florida are, of course, governed by statute," Thompson said, adding that "there is no city in Florida that can adopt a budget or tax rates without public hearings, which are required." He described the budget as "a planning document, a fiscal plan" that must be balanced for the fiscal year running Oct. 1 through Sept. 30.

Thompson emphasized two revenue levers the commission sets during the budget adoption: the operating millage and any debt-service millage tied to general-obligation bonds. He noted the city's 2025 operating millage is about 5.7 mills, which generates roughly $31.5 million, and the debt-service millage is about 0.55 mills, generating about $3 million.

Why it matters: Thompson warned that several forces could raise costs or reduce available grant funding for FY26, including continued inflation for goods and construction materials, tariffs, higher interest rates, weaker investment returns that raise pension contributions, and uncertainty over federal and state grant programs.

Significant numbers and program context: Thompson said the city's total budget is about $166,000,000 and that the general fund is roughly half of that total. The capital improvement program (CIP) for the current fiscal year is about $38,400,000; staff reported more than $25,000,000 in grant funding for the current CIP cycle. Thompson also explained fund accounting to distinguish governmental funds (general fund, special revenue) from enterprise funds (water and sewer, solid waste, stormwater), which "set their own rates and are self-supporting."

Public-safety contract: Thompson said he received a preliminary budget letter from the Broward Sheriff's Office on the prior Friday proposing a $1.9 million increase in the city's contract for police services. "Their current contract is about $20,600,000 and they're proposing to go up to $22,500,000," Thompson said. He said the proposed increase is largely personnel-related, and that the additional deputy included in the proposal would likely account for roughly $200,000 of the increase. Thompson said Oakland Park currently funds 99 positions in the BSO contract, of which 88 are sworn officers and 11 are non-sworn staff.

Labor and pensions: Thompson said three city union contracts (representing public works, AFSCME clerical/administrative workers, and the firefighters' union) expire Sept. 30 and will be negotiated before the next fiscal year; outcomes could materially affect FY26 costs. He also noted the city's pension contributions rose because of weaker investment returns, increasing legacy public-safety pension costs by about $1 million to $2 million.

Taxes and assessments: Thompson described the property-tax calculation and the effect of Florida's Save Our Homes cap on residential assessed values, explaining how taxable value can lag market value growth. He also explained non-ad valorem special assessments that are billed for services rather than property value: the fire assessment (generating about $11,000,000), the residential solid-waste assessment (about $3,700,000; described as about $3.40 per residential unit in staff remarks), and the stormwater assessment (about $4,700,000; calculated at $125 per equivalent residential unit).

Budget schedule and public input: Staff presented a tentative calendar: CIP presentation in June; recommended budget and preliminary rates to the commission on July 16; TRIM notices in August; tentative millage and budget hearings on Monday, Sept. 8; and final adoption on Sept. 17. Thompson encouraged residents to comment during the public hearings and via staff contact.

What staff will do next: Thompson said staff will continue to refine the draft budget, work with BSO on options for their proposed increase and prepare for union negotiations. He also said many CIP projects already awarded reduce near-term risk, but that grant uncertainty and construction inflation remain concerns.

Ending: Thompson closed by offering his contact information for further questions and noting the presentation will be part of the public record.