City budget workshop previews FY2027 with flat property tax, $5 million borrowing proposal and departmental spending requests

The City Commission held a special budget workshop on June 9 to review the administration’s proposed fiscal year 2027 budget, hear department presentations and set priorities for decision packages ahead of a July 30 proposed‑budget deadline.

City Manager Stanley (speaker 13) framed the workshop by recalling the charter’s assignment of budget preparation to the city manager and the commission’s role in ultimate approval. Finance Director Andrea (speaker 16) gave the economic outlook and revenue assumptions underlying the draft: staff recommended keeping the city’s property tax rate flat at 0.68 while projecting a conservative 2.5% increase in property-tax revenue and a recovering sales‑tax stream (a projected 7.7% gain, roughly $700,000). “We’ve seen an uptick in sales tax; we’re projecting that forward cautiously,” Andrea said.

Andrea warned of risks that could affect revenue and capital costs, including unresolved tariff litigation, midterm election‑driven business hesitancy and growing interest from data‑center developers, which can increase property‑tax base but also raise energy and water demand. “AI and data centers present property‑tax opportunity but also high energy and water consumption,” she said.

City staff outlined a set of decision packages for departmental needs, including IT and cybersecurity investments, city website redesign, election and document‑imaging costs in the city secretary’s office, and recurring personnel requests across public safety, utilities and public works. Administration asked for a GIS manager and an IT manager to prepare for an upcoming shift away from third‑party GIS/IT hosting; the proposal includes a cybersecurity enhancement the city manager described as a “must have.”

Finance staff asked the commission to consider a modest certificate of obligation of $5,000,000 to address immediate capital and facility needs without raising property‑tax rates. City Manager Stanley noted the city previously identified building‑remediation issues at the public safety facility and city hall and recommended setting aside funds for initial engineering and repairs. “We’d like to roll forward a smaller certificate of obligation that can take care of current facilities and give us room to plan longer term,” he said.

On personnel and compensation, staff recommended a 4% cost‑of‑living adjustment across the workforce and targeted pay‑scale adjustments for public safety. Andrea estimated the public‑safety pay adjustments alone would cost about $1.5 million; commissioners asked staff to model the FY2027 budget with those increases included to help prioritize decision packages.

Department heads also presented individual items that the commission will need to prioritize: the city secretary requested funding for a likely November special election; human resources proposed an integrated HR/payroll system (UKG) and an additional senior analyst; public works and utilities asked for equipment and staffing for sanitation, collection and distribution; and tourism/EDC requested marketing and festival support funded by hotel‑occupancy tax. Staff repeatedly emphasized limited general‑fund capacity and urged commissioners to triage recurring requests versus one‑time capital spending.

Next steps: staff will consolidate feedback, provide modeled budget scenarios that include the recommended 4% COLA and public‑safety pay adjustments, and present a proposed budget by July 30 for public posting and hearings in August. The commission scheduled additional workshops to vet decision packages before final votes in late August and September.