Indian River Shores staff present 2026-27 draft budget proposing lower millage and no service cuts

Presenter Heather opened the finance committee briefing with an overview of the town's proposed 2026-27 budget, saying the draft sets a proposed millage rate of 1.2402, down from the current 1.2810, and is based on ad valorem revenue of about $7.4 million. "There are no cuts in services to this budget," she said, adding the draft includes total operating appropriations of $10.97 million and an all-inclusive total of $12.54 million.

Heather said projected general fund reserves are expected to rise to about $7.7 million and that the budget was prepared conservatively ahead of new transparency requirements. The draft assumes a taxable-value growth of roughly 7% and uses a rollback calculation to set the millage. She explained the town tends to collect about 96% of assessed taxes because many residents pay early.

On personnel, Heather said the proposal contemplates raises by classification: a 4% increase for union employees, 5—6% for department heads, and up to 7% for lower-staff positions, subject to the annual valuation process. Health insurance was initially budgeted at a 35% increase as a worst-case assumption; the renewal negotiations ultimately produced an effective rate closer to 15%, which Heather said reduces the budget exposure by an estimated $130,000—$140,000.

Legal services are budgeted at $275,000, Heather said, with any unanticipated attorney fees to be drawn from reserves. She described the town's emergency planning posture: approximately 7.6 months of operating reserves on hand, a $1 million line of credit to bridge FEMA reimbursement delays, and a conservative approach to using reserves for one-time capital projects rather than ongoing expenses.

Committee members praised the presentation and asked detailed questions about accounting classifications, insurance assumptions and the municipal budgeting philosophy; Heather described the town's approach as a modified zero-base model that rolls forward only predictable items and requires justification for special projects.

Janice later addressed a public question about John's Island cemetery, reporting a waiting list of about 28 people and noting the cemetery reserve has been drawn down. Heather said proceeds from plot sales go back into cemetery maintenance.

Because the finance committee did not have a quorum, no formal vote or recommendation could be adopted at the meeting. Heather said staff will collect questions and emailed comments and include them in the packet to the town council; the committee set a deadline to gather outstanding input by July 13.