Zephyrhills reviews draft FY25 budget; council directs staff on raises and incentive plan

Zephyrhills city staff presented the draft fiscal year 2025 budget at a Sept. 3 council workshop, outlining roughly a $4 million net reduction driven primarily by the timing of capital projects and asking council for direction on a proposed split pay increase and a one‑time tiered incentive.

City Manager (unnamed in the transcript) told council, "Capital outlay was decreased by just over 5 and a half million dollars," explaining that projects including the tennis center and an effluent pump station were encumbered in the current year and removed from the FY25 spending plan. Jessica Carter, finance supervisor for the City of Zephyrhills, said the effluent pump station capital line was moved into a reserve line as overflow/excess revenue, which is why budgeted reserves rose.

Why it matters: the draft keeps a 6.25 millage rate and proposes both recurring raises and a one‑time incentive, decisions that affect personnel costs going forward and the city’s ability to fund multi‑year capital projects without increasing taxes.

Key numbers and proposed personnel changes Staff reported a $307,000 increase in personnel services that reflects a proposed 4% salary increase in October and an additional 3% in April. In addition, staff proposed a tiered incentive program with several pay tiers (the draft showed $1,500 to $2,500 levels and a $2.50 add‑on for some higher‑paid employees) and estimated a one‑time cost of about $147,000. The city manager said those incentive payments would come from undesignated reserves because they are intended as a single‑year expense.

Department and capital highlights Staff also described line‑item changes across funds: communication service tax revenue was revised up by roughly $50,000, gas tax by about $8,700, and a reimbursable ZPD MOU revenue item of about $20,000 was added after a conversation with the police chief. Planning professional services were cut by $75,000 after a grant application was not awarded. The budget added approximately $45,000 of police camera purchases funded by impact fees and increased the estimated cost of stormwater pump station upgrades from $200,000 to $400,000.

Airport and other capital projects The city confirmed a $6.6 million state appropriation for airport work is largely consumed by box hangars and taxiway Foxtrot, leaving insufficient funds in that appropriation to cover the terminal, which staff estimated at about $4.9 million. Staff outlined two options: pursue a complicated state reappropriation with legislators or pursue a future FDOT 50/50 grant to fund the terminal. City staff warned that some state‑designated funds cannot be repurposed and would revert to the state if unused.

City yard, Zephyr Park and sidewalks For the city yard complex and Zephyr Park, staff described current design funding and potential construction financing. The draft shows roughly $1.2 million for city yard design (from Penny for Pasco, utility and sanitation dollars) and just over $900,000 for Zephyr Park design; future construction would rely on undesignated fund balance and debt financing. Outside the CRA, staff said $1,000,000 is budgeted for sidewalks, with surveys ordered for specific roadway segments.

Council questions and direction Council members questioned the size and timing of the raises and incentives and raised concerns about optics for residents facing higher living costs. One councilmember warned some employees could receive combined increases comparable to or exceeding 8% in a year. The city manager asked council for explicit direction on the incentive tier; the workshop record shows staff received direction to proceed with the draft tiered incentive framework (the $1,500–$2,500 tier structure as shown) unless counsel gives different direction. No formal vote was held at the workshop.

Schedule Staff said the final millage rate and tentative budget will be before the council on Sept. 9, with adoption of the final budget scheduled for Sept. 23. Staff also committed to clarifying multi‑year CIP timing and debt repayment schedules to spread projected construction costs across appropriate years rather than showing large sums concentrated in FY26–FY27.

The council adjourned the workshop after staff confirmed they had the direction they requested; formal adoption will occur at upcoming hearings.