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Zephyrhills council reviews tentative budget, debates 4% raise plus tiered incentives vs. larger midyear increase
Summary
City staff presented a tentative budget with a proposed 6.25-mill rate and roughly $9.3 million in ad valorem revenue; councilors spent the bulk of the meeting debating whether to combine a 4% October raise with one-time tiered incentives or delay for a larger midyear percentage that compounds.
City staff presented a tentative 2024–25 budget that keeps the millage rate at 6.25 mills and estimates ad valorem revenue near $9.3 million, then walked council through revenue updates and changes since the prior meeting.
The most contested item was employee compensation. Staff outlined a proposal that would put a 4% across-the-board salary increase in effect Oct. 1 and, separately, a one-time tiered incentive funded from reserves. The proposed tier would pay $1,500 for employees earning $40,000 or less; $1,000 for $40,001–$60,000; $500 for $60,001–$80,000; and no incentive for employees above $80,000. Staff emphasized the incentive is a one‑time payment that would not become part of base pay.
Councilors debated alternatives. Some members pushed for a higher percentage that would compound over time, proposing to delay a portion of the raise until midyear so employees would ultimately see a larger ongoing increase. Staff explained that moving percentage increases to midyear can be structured to be revenue neutral for the current fiscal year but will change baseline salary obligations for the next budget cycle. Finance staff noted the draft before council includes the 4% and the tiered incentive; adding a midyear 3% would increase next-year obligations.
Jessica Carter, finance supervisor, placed the proposal in recent context: “I believe the year before was 6%,” and she noted prior raises have varied across departments and the salary study yielded higher adjustments for some classifications.
Sandra Amerson, HR risk management director, urged focusing incentives where turnover is highest: “We’re actually seeing them mostly in utilities at the entry level, utility service workers, operators,” she said, identifying utilities, parks and public works as retention pain points.
Council members asked staff to run additional scenarios — including a $2,000/$1,000/$500 tier alternative and the fiscal impact of applying larger percentage increases earlier — and to bring a placeholder for police negotiation outcomes, which are under separate bargaining. Staff said a negotiation meeting with police is set for Sept. 6 and that the tentative budget first reading is scheduled for Sept. 9; councilors asked for at least one more budget workshop before that first reading.
Next steps: staff will model the alternatives requested by council (timing, tier variations and police outcomes) and return with revised numbers at a follow-up budget workshop in early September.
