Atlantic Beach holds budget workshop; staff flags $9 million potential to fund enhancements, discusses sewer hookups for 14 homes

Atlantic Beach held a special budget workshop on June 9 to present the proposed FY26 budget, outline a schedule for follow-up departmental workshops and field commissioner questions about capital projects and homeowner sewer hookups.

The presentation by Mr. Killingsworth, the staff presenter, framed the budget as "the biggest policy statement that the city has. It's how we spend our money," and described the staff approach: use last year's revenues as a conservative baseline, maintain the current millage of 2.841, and program modest utility rate changes. "If you don't adopt any enhancements, there would be about a $9,000,000 surplus in revenue," Killingsworth said, while cautioning that actual results depend on realized revenues and pending enhancement requests.

Why it matters: that $9 million represents capacity the commission could use to move capital improvement program (CIP) projects forward or to fund new enhancements. Staff emphasized that all CIP work previously approved for FY26 is already in the budget; any additional items would be treated as enhancements that the commission must decide to fund.

Key details from the presentation included the budget policy requirements that the commission has adopted by resolution: use of strategic planning, maintaining current levels of service, balanced budgets, funding authorized positions and holding 25% operating reserves. Staff also disclosed functional expenditure changes: modest increases in general government personnel costs (about 1.3%), a larger increase shown for public safety, and a 13% rise in costs for water, sewer and stormwater functions.

Commissioner questions zeroed in on a sewer hookup project intended to serve 14 Atlantic Beach homes. Commissioners asked whether the city or homeowners would bear costs. Killingsworth said the grant would fund running the pipes while homeowners would pay hookup fees; staff does not currently have a built-in homeowner financing program but can explore installment options. A commissioner summarized the homeowner exposure as "let's say, dollars 8,000 for the hookup," and staff said it would check exact amounts and possible financing arrangements.

Grant status was flagged as uncertain. Staff said they believe funding is likely but have not received written confirmation; staff and commissioners noted prior vetoes of appropriations at the state level in earlier years.

Staff also walked through anticipated cost drivers: a budgeted 10% increase in general liability, a 10% projected increase in health insurance this year (after a previously-expected 15% increase resolved to 10% last year), and contractual legal costs set to rise about 5% annually. The presentation listed enhancement requests across departments, including a distribution operator trainee (an entry-level water production role, to be funded by enterprise funds) and a building maintenance technician for public works to address backlog maintenance.

Commissioners asked about priorities that the public has signaled, including upgrades at Donner Park (baseball field, lighting, dog park amenities) and decorative street lights for Town Center; staff said those items were not yet included in the approved FY26 CIP and would appear as enhancements for the commission to consider.

Staff outlined the process for prioritizing enhancements: they will provide a prioritized list for commission decision and will track grant opportunities that could change the calculus (for example, matching grants that stretch city dollars). Staff emphasized that the commission retains final authority over what is approved in the budget.

A commissioner also asked how fees from public records requests are tracked; staff said those fees go into the general fund and will provide a ballpark dollar amount.

Next steps: staff will run the scheduled follow-up workshops—neighborhoods (June 23), public works (July 14), public safety (June 28) and public utilities (July 11)—and produce a prioritized list of enhancement requests for commission consideration; the commission may convene an additional session on Aug. 25 if needed. With no additional business, the mayor adjourned the special meeting.

The workshop did not include a final vote on any item; decisions on which enhancements to fund will be made in later meetings once staff provides prioritized estimates and any confirmed grant awards.