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Atlantic Beach staff proposes 3% increase to general fund, highlights pension and capital carryforwards
Summary
City staff presented a proposed FY2026 budget that raises general-fund spending about 3% to $20.58 million, flagged higher pension costs tied to recent police pay increases, and identified roughly $1.9 million in reserves and carryforward funds available for capital enhancements; commissioners asked for more detail and set a follow-up meeting to finalize priorities.
City manager (name not specified) presented the City of Atlantic Beach’s FY2026 proposed budget at a budget workshop on Aug. 25, saying the general fund is forecast to increase from $19,973,000 to $20,582,000 — roughly a 3 percent rise.
The presentation outlined millage options and thresholds: the city’s current millage is 2.841, the rollback rate is 2.6312, the majority-vote threshold is 2.7499, and adopting above that would require a two-thirds vote. “The most we can do is 2.841,” the city manager said, noting the commission would need a two-thirds vote to adopt any larger rate.
Why it matters: staff said a recent 17 percent pay raise for police and a change from a 2.5 percent multiplier to a 3 percent multiplier for pension calculations substantially increase projected pension payouts, which in turn raises employer pension contributions. The city manager summarized the effect: “the pension fund is a—is—retirees’ pension program and the police pension program,” and the projected obligations have grown as a result of compensation changes.
Staff also walked commissioners through fund-by-fund changes. Special-revenue funds are projected to grow from about $6.7 million to $7.5 million (a 13 percent increase) while the water and sewer funds drop relative to last year because several large capital projects were removed from the coming-year budget. The sanitation fund is proposed at about $2.8 million, an increase attributed to CPI and higher fuel costs.
The presentation noted multi-year capital projects and carryforwards will change the final totals: last year’s budget was presented at about $58.7 million versus a $52 million figure now shown for next year, but staff said some projects will be carried forward and that figure will be adjusted. Staff flagged an ERP implementation expected to go live in February and Ahern Street projects that remain in design or early construction stages.
Commissioners asked for more granular line-item detail — particularly for parks maintenance, where proposed spending rises materially — and questioned how employee retirement participation and pension accounting interact. The city manager said current-employee contributions to 401-type accounts do not flow into the closed pension plan for general employees, which is separate from the still-open police pension.
Next steps: staff said the proposed budget ordinance will be submitted in early September (the first hearing is scheduled for Sept. 8) and recommended the commission finish prioritizing enhancements before that date. The commission agreed to schedule an additional meeting to finalize spending priorities.
The workshop recessed after commissioners consented to meet again to continue prioritizing enhancements and carryforwards.
