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City of Live Oak adopts 9.25-mill rate, approves $49.9 million operating budget after generator debate
Summary
At a special meeting Sept. 23, 2025, the City Council of the City of Live Oak set a millage rate of 9.25 mills and adopted the fiscal 2025–26 operating budget of $49,896,385. Council discussion focused on a $450,000 placeholder for a new generator; council members were told any purchase would return to the council for contract and bid approval.
The City Council of the City of Live Oak on Sept. 23, 2025, approved an ordinance setting the 2025–26 millage rate at 9.25 mills and adopted an operating budget of $49,896,385, the council announced during a final budget hearing held that evening.
The council opened the final budget hearing, noting the taxing authority as the City of Live Oak and that the advertised rollback rate was 8.9452 mills. The approved millage of 9.25 mills is 3.41% above the rollback rate. The council also approved ordinance No. 15-40, the operating budget for fiscal year 2025–26, adopting total appropriations of $49,896,385; the ordinance record shows the required public hearing was first held Sept. 8 and closed with final reading on Sept. 23.
Why it matters: setting the millage and budget establishes the city’s revenue and spending levels for the coming fiscal year and enables staff to begin the budget-year operations and capital projects already placed in the plan.
Council discussion and generator funding: Councilmembers discussed a $450,000 line item described in the budget as a placeholder for a new generator to serve City Hall and the annex. One councilmember raised concerns about the amount and the timing, saying, “Half million dollars is a lot of taxpayers' money,” and urged consideration of alternatives such as splitting the appropriation or placing part in contingency. That councilmember said the city had previously experienced power outages of about three days and questioned whether rental or phased approaches might be more prudent than the full appropriation immediately.
The city manager responded that staff had not yet obtained final quotes and characterized the $450,000 as a placeholder: “we haven't gotten all the quotes in to do the work,” and explained the current generator at City Hall is intermittent and does not reliably power the server, creating cybersecurity and operational concerns. The manager said bids and installation details, including wiring challenges at the annex, would be presented to the council before any expenditure from that line item.
The council was told the current generator at City Hall is old and unreliable; staff described an operational issue in which the server does not function consistently when the existing generator runs. Council members were also told that any specific purchase and contract for a new generator would require separate council approval after the bid process.
Votes and procedure: The council passed ordinance No. 15-39 (the millage ordinance) and then ordinance No. 15-40 (the operating budget). A voice vote for the operating budget recorded at least one dissenting vote; the transcript does not provide a roll-call tally with named votes. Staff read the budget figures aloud during the hearing and confirmed the final budget total as $49,896,385.
Context and next steps: The council closed the formal budget hearing after the votes. Council members and staff said that, where large capital items such as the generator remain as placeholders in the budget, staff will return with bid results and specific contract amounts for council approval before any funds are spent.
