Mayor and council review proposed FY2027 budget as Jupiter Fire Rescue nears operations

Scott Reynolds, the town of Jupiter’s chief financial officer, presented the council a draft operating budget for fiscal year 2027 on June 18 and described it as "a living working document" while the town awaits final state and property‑appraiser numbers. Reynolds told the council the budget assumes roughly 5.99% growth in ad valorem taxable value and anticipates no general‑fund operating millage increase from the current 2.3894 rate.

The presentation front‑loaded the budget’s two dominant themes: funding the first full year of Jupiter Fire Rescue (JFRD) operations and responding to recent state changes affecting utility revenues. "We’re set to go live October 1, 2026 with Jupiter Fire Rescue," Reynolds said, and staff estimated JFRD’s first‑year operating costs at about $21.6 million, supported by a proposed JFRD operating millage of roughly 1.2023 and a non‑ad valorem assessment to help pay debt service (the draft shows approximately $1.9 million for that assessment).

Why it matters: the JFRD implementation moves substantial ongoing costs onto the town’s tax roll and changes how revenue is allocated among the general fund, the community redevelopment agency (CRA), and capital projects. Reynolds showed an early consolidated tax‑bill estimate of about 3.5917 millage (all elements rolled together) under current assumptions, and cautioned those figures will change when the July 1 property‑appraiser values arrive.

Councilors also focused on the budget’s revenue risks. Staff said a change in state law will shift a portion of a recurring utility charge—referred to in the presentation as the "search charge"—away from general‑fund revenues and into the utility fund. That change removes roughly 25% of an estimated $1.4 million in annual general‑fund revenue tied to that charge, prompting questions about timing and rate design. "That is correct," Reynolds agreed when councilors asked whether the change would create a disparity between inside‑city and outside‑city water customers until a rate study is completed.

Several councilors urged caution on using reserves. The draft budget includes a $1.5 million planned use of fund balance; Reynolds said $600,000 of that would fund a splash pad and the remainder would cover other CIP items and one‑time items. One councilor recommended pausing discretionary capital projects and not drawing on the general‑fund reserve this year, arguing the town should preserve cash while the full fiscal impact of legislative and tax changes becomes clear.

Staff reviewed reserve levels and disaster risk: Reynolds reminded the council that historical storm events cost the town millions, that FEMA reimbursement rules and thresholds are under review, and that the town’s current reserve position (projected at about $40.3 million after planned uses) is intended to provide flexibility for catastrophes and timing differences in reimbursement.

Other budget details: the draft assumes $1.5 million in EMS transport revenue, modest increases in building‑permit and inspection revenues subject to further study, no indexing of water or stormwater rates for FY27, and continued investment in employee recruitment and retention across town departments. Staff also noted hiring plans for JFRD (staffing and benefits assumptions are included in draft numbers) and the potential to revise benefit costs once new hires make benefit elections.

Next steps: Reynolds and staff said they will seek the July 1 property‑appraiser estimates, set the TRIM schedule July 21, hold a second workshop Aug. 13, and bring first and second budget readings to the council Sept. 8 and Sept. 22. The council also agreed to schedule a separate workshop to address the recently passed legislation affecting property taxes and related referendum options.

The workshop ended without a vote on the operating budget; staff will return with updated numbers and the council will consider CIP prioritization, rate‑study results and any referendum decisions in subsequent meetings.