Mayor presents FY‑26 budget; council sets tentative millage and hearing dates

Mayor Ken Welch presented the city’s FY‑26 recommended budget to the City Council, describing a spending plan that holds the operating millage rate flat at 6.4525 mills and proposes a $967.3 million operating budget and a $202.0 million capital improvement program component. “We have the opportunity and ability to allocate more than 1000000000 dollars of resources to impactful projects and programs in our community,” Welch said, framing the budget around five pillars: housing, environment and resiliency, equitable development, education and youth opportunities, and neighborhood health and safety.

Budget Director Liz Makovsky walked council through the recommended figures and changes since the preliminary budget, including the proposed general fund operating budget increase and revenue estimates. Makovsky presented the millage calculation and the statutory timeline for Truth in Millage notices; the presentation noted the FY‑26 rollback rate is 6.2083 mills and explained the city must notify taxpayers if the millage increases after today’s tentative setting.

At the request of council members, staff explained funding priorities and where non‑ad valorem revenues (charges for services, intergovernmental grants, transfers, permits and fees) offset general fund needs. The mayor and budget staff highlighted investments in housing preservation and development, stormwater and water system upgrades under a new SPAR (St. Pete Agile Resilience) program, expanded arts funding, youth programs including a $500,000 Future Ready Academy allocation, and continued funding for community impact grants and healthy‑food initiatives.

Council then took two formal votes required to begin the budget adoption process. The council adopted the proposed tentative millage rate (resolution F2A) and voted to set two public hearings on the budget (resolution F2B) for Sept. 11 and Sept. 25; the clerk announced both motions passed unanimously. Budget staff said the millage in the recommended budget will generate an estimated $228,876,000 in ad valorem revenue for FY‑26.

The city will post the full recommended budget and executive summary on the city website and hold the public hearings in City Hall chambers in September as required by statute. Councilmembers asked for additional committee review at upcoming budget workshops to dive into line‑item changes before final adoption.