Ocala budget director proposes $1.15 billion fiscal plan; hearings set for September

Tammy Haslam, the city of Ocala budget director, presented a proposed $1,152,885,830 citywide budget for fiscal year 2025–26 at a council work session Tuesday, outlining spending priorities for public safety, capital improvements and enterprise operations and scheduling public hearings in September.

Haslam told the council the tentative millage rate of 6.6177 was adopted July 15 and the budget workshop was intended to provide information ahead of two public hearings: the first reading of the tentative budget on Wednesday, Sept. 3, and the second and final reading on Tuesday, Sept. 16. Haslam said the public hearing to adopt the city—s fire assessment is scheduled for Thursday, Sept. 11.

Why this matters: The proposal balances the general fund at the current millage while continuing large capital and public-safety investments and relies on multiple revenue sources that the council will be asked to adopt at the September hearings.

Key figures and structure - Haslam said the general fund totals $188,100,612 and is balanced at the tentative millage rate of 6.6177. She estimated maintaining the flat millage would generate $53,614,809 in ad valorem revenue next year, roughly $5 million more than the current year; after transfers (including about $3,700,000 to community redevelopment area funds) she said the general-fund share of that ad valorem revenue is roughly $40,800,000. - The proposed budget assumes no change to the fire assessment and sets a revenue target of $18,200,000 from that assessment. - The budget includes transfers from four enterprise funds that total about $29,800,000; Haslam said the city did not base transfers on a fixed percentage this year in order to reduce reliance on enterprise transfers. - The budget office is maintaining a 20% general-fund reserve for cash flow and emergencies.

Public safety, personnel and benefits Haslam said public safety remains a priority: the general-fund split shown in the presentation allocates 28 cents of every dollar to police and 17 cents to fire (45 cents combined). The proposed budget includes contractual and noncontractual wage increases for nonunion employees and for fire union employees; police union negotiations were described as ongoing. Haslam told the council the city experienced a $2,600,000 projected increase in health-insurance costs and that employee contribution increases are proposed and would vary by plan.

Capital projects and the CIP Haslam reviewed the capital improvement plan (CIP) highlights: - Fleet purchases of $14,804,905 are proposed systemwide; in public safety the plan includes about $3,700,000 for 52 police vehicles and an XUV and roughly $3,000,000 for five fire vehicles and a generator (fleet purchases for enterprise departments remain in their respective funds). - Ocala Fiber Network projects totaling $5,300,000 are included to expand and maintain the network. - Water resources projects are proposed at roughly $21,900,000, including lift-station, water and sewer-line, and treatment and reclamation work funded across the water construction fund and impact-fee funds. - Recreation and parks projects include new pickleball courts at Jervey Gantt and Cliett parks, pool deck resurfacing at Jervey Gantt Pool and new bleachers at the E.D. Croskey Recreation Center. - Engineering noted $500,000 set aside for future design and build of a co-located fire and police first-responder training facility; Haslam said, "I believe we've already set aside $3,000,000 for that facility. So we're just continuing to add to that each year and make that money. So we're ready." The presentation indicated the campus may be phased, with the fire portion potentially starting first.

Transportation and local taxes Haslam said the infrastructure penny sales surtax (the "penny sales tax") is estimated at $12,200,000 for the next fiscal year; by current council direction 60% of that allocation is budgeted for transportation and 20% each to police and fire capital needs. Councilmembers discussed transportation projects including roundabouts planned on Fort King and 20 Second Avenue and a Southeast Ocala traffic-calming study; staff said the roundabouts will be mountable for large vehicles and are sized to accommodate emergency and school-bus traffic.

Airport and other enterprise items Haslam described the airport fund as stable and noted the airport relies on grant funding for capital projects. The presentation listed a $50,000 special request to repaint taxiway markings after the Federal Aviation Administration found painted lines were "two inches off" specification and the original contractor is out of business; airport staff said repainting to FAA standards is required.

Fees, code items and grants Councilmembers asked about several fee and staffing changes: Haslam said community redevelopment area projects are funded with CRA dollars; a fee for review of community development districts (CDD) was included per state statute; and a move of the building department out of the general fund into a separate building fund explained a staffing count change in growth management. Haslam and staff said they will provide additional detail as requested by individual councilmembers.

Next steps Haslam and council members said they will monitor possible changes to state ad valorem law and related proposals. The council has a CRA board meeting scheduled Wednesday, Sept. 3 before the regular council meeting to consider CRA budgets. Formal adoption of the budget and the fire assessment are scheduled at the September hearings listed above.