Tallahassee advances tentative FY27 budget, sets hearings as state tax changes loom

TALLAHASSEE — The Tallahassee City Commission on June 10 advanced a set of budget actions and scheduled public hearings as city staff warned a pending state constitutional amendment could reduce local property-tax revenue in 2027 and 2028.

City Manager and budget staff presented a proposed FY27 balanced budget and a FY26 third-quarter update at a single-issue workshop. Robert Wigan, the director introduced by the manager to lead the presentation, outlined the city’s budget picture, saying the FY27 balanced budget is roughly $955.8 million and the city’s broader operating and capital plans are commonly described around a $1.2 billion portfolio. Wigan said property-tax revenue is estimated at $81.6 million and that public safety is the single largest category in the general fund.

The commission approved (3–2) a motion by Commissioner Williams Cox, seconded by Mayor Pro Tim, to accept the FY26 third-quarter update, approve a set of FY26 budget amendments and advertise a tentative FY27 millage rate of 4.4072. The motion also set public hearings for Sept. 9 and Sept. 23, 2026 at 6 p.m. in the City Hall commission chambers. The transcript records Commissioners Matlo and Porter as voting in opposition.

Why it matters: Staff told commissioners that a constitutional amendment sent to the November ballot would create a homestead exemption ($150,000 in 2027 and $250,000 in 2028) and would cap certain commercial/rental assessment growth, projecting potential revenue reductions of about $11.2 million in 2027 and $17.8 million in 2028 if the measure is enacted. Wigan said the implementing Senate bill would change the millage calculation and require a supermajority vote (two-thirds) to adopt a millage above the rollback rate, constraining the commission’s September options.

Major details and adjustments: Wigan presented several specific FY26 budget amendments the commission was asked to approve now so projects can proceed. Those included: - $3 million to authorize advanced orders for refuse trucks that require 9–12 months lead time; - $718,000 reallocation from a completed Railroad Avenue project to the Waverly Road sidewalk project; - $515,000 to the Appalachee Parkway Median Improvement Project to secure state matching funds; - $750,000 shifted into FY26 for an EV-charging-station project to accelerate completion.

Personnel and voluntary separations: Staff restated that 171 employees elected to participate in a voluntary separation incentive program (about 5% of the workforce). City staff described an initial FY27 savings estimate from those separations of about $8.46 million concentrated in the general fund, while acknowledging the number is preliminary: HR tracked signups, allowed a seven-day rescission window, and staff said departments will evaluate, week by week, which positions must be refilled to maintain services.

Commissioner concerns and public comment: Commissioners pressed staff for greater detail on the VSSI calculations, the total cost of buyouts, and the dollar impact of the proposed 4% across-the-board raise. Robert Wigan and other staff said the city has the underlying numbers but would refine and return with more detail as reorganization and replacement decisions are made. Resident Stanley Sims urged more transparency, saying, “Don’t censor the information from us. We need to know — these are our dollars.”

Next steps: The commission approved advertising the tentative millage and the staff-recommended amendments and set the two public hearings. Staff emphasized that the final FY27 millage adoption in September could be affected by state implementing legislation and would require the vote threshold prescribed by that law if the commission seeks to adopt a rate above the rollback rate.

The workshop adjourned after the 3–2 vote and the commission moved on to its 3:00 p.m. meeting.