Highlands County holds property tax rate at 7.6 mills after budget debate

The Highlands County Board of County Commissioners voted 3–2 on Aug. 19 to keep the county's general fund millage at 7.6 mills for fiscal year 2025-26. Commissioners Roberts, Campbell and Kerouac voted in favor; Commissioners Elwell and Tuck opposed the motion.

County budget manager David Nits told the board the proposed countywide budget for 2025-26 is about $208.5 million and described several pressure points: an expected health-insurance premium increase that could add roughly $545,000, required loan-servicing cash set-asides that increased the near-term budget burden by about $3.3 million, and deficits in the county's transportation trust fund. Nits also told commissioners the county has budgeted a $1.5 million contribution to the regional medical examiner building project.

Why it matters: the millage decision determines how much property owners will pay per $1,000 of taxable value. Commissioners debated whether to lower the rate to give immediate taxpayer relief or hold it to preserve the county's fund balance as a cushion against revenue volatility and unexpected disasters.

Board discussion centered on fund-balance levels and known uncertainties. Nits presented scenarios that showed a quarter-mill cut to 7.35 mills would lower projected unassigned fund balance months (a standard liquidity measure). Commissioner Chris Elwell argued a modest reduction would still leave the county with a healthy reserve and would provide tax relief. Commissioner Scott Campbell and others said recent drops in state-shared revenues and ongoing pressures on other county funds argue for caution.

Nits summarized fiscal risks the board considered, including declines in state revenue-sharing and fuel-tax receipts and the need for periodic cash infusions to cover employee health claims. He told commissioners the county expects to finish fiscal 2024-25 with an audited balance materially higher than the number used in some internal scenarios, but added there remain material unknowns.

The board's next formal budget steps are a required public hearing process in September, when commissioners will adopt the final millage and budget. David Nits and county staff said they will provide updated, line-by-line figures before the first public hearing so commissioners and the public can see final estimates and any recommended adjustments.

The vote: motion to set millage at 7.6 mills — passed 3–2 (Roberts, Campbell, Kerouac yes; Elwell, Tuck no).