Cocoa Beach sets 2026 millage at 6.000 mills and adopts FY2026 budget after debate over grants and reserves

The Cocoa Beach City Commission voted unanimously to set the city's final millage rate for fiscal year 2026 at 6.000 mills and adopted the fiscal year 2026 budget and a five-year capital improvements program.

The action began with staff presenting Resolution 2025-16, which showed a rollback rate of 5.961 mills; staff recommended the commission adopt a 6.000-mill rate, a difference of approximately 0.039 mills (about $125,000). Commissioners asked staff for the underlying calculations and discussed whether the percentage change shown in some charts (reported at 0.65%) and the mill difference were being conflated in public discussion.

Commission debate focused on whether multi-year comparisons overstate spending growth because they include one-time grant inflows, including ARPA dollars. Several commissioners urged separating recurring operating growth from one-time grant-funded capital spending; others noted that grant proceeds normally appear as both revenue and matching expenditures and therefore do not leave the city with unencumbered funds.

Commissioners also reviewed the city's recent debt reduction, capital projects such as the 2024 city hall, and uses of reserves for items like the golf course irrigation system. Some members pressed for a longer-term financial plan that would (a) tighten operations to enable a rollback rate in a future year and (b) identify alternative local revenue sources so resident millage could be used to replenish reserves rather than finance recurring operations.

After questions and clarification from the finance director and city manager, the commission held a roll-call vote and approved Resolution 2025-16 (6.000 mills). The commission then approved Resolution 2025-17 (final FY2026 budget) and Resolution 2025-18 (five-year capital improvements program) by unanimous votes.

Votes at a glance - Resolution 2025-16 (final millage rate): approved 5-0 (Commissioners Jackson, Hutchison, Tomlenty, Vice Mayor Williams, Mayor Capizzi recorded as Aye). - Resolution 2025-17 (adopt FY2026 budget): approved 5-0. - Resolution 2025-18 (5-year CIP including FY2026 capital budget): approved 5-0.

What happens next: Staff will finalize budget documents and the city will implement the adopted millage and budget for FY2026. Commissioners indicated they may revisit operational cuts and the possibility of a rollback rate reduction as staff produces a multi-year plan and identifies non-ad valorem revenue options.