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Fort Walton Beach council sets tentative 5.69 millage, approves outsourcing moves to close $500,000 operating shortfall
Summary
Facing an estimated $500,000 operating-cap gap, the Fort Walton Beach City Council on a 4–3 vote set a tentative maximum millage of 5.6900 and approved several measures to remove services from the city’s general fund — including outsourcing daycare, senior programs and some events — while leaving final budget choices to later readings.
The Fort Walton Beach City Council set a tentative maximum millage rate of 5.6900 on a 4–3 vote and moved to outsource or remove several recreation- and community-service costs from the general fund in an effort to address an estimated $500,000 operating-cap shortfall.
City Manager Mr. Davis led the presentation and told council members that the operating cap (personnel and day-to-day expenses) differs from the millage rate (the revenue stream that helps fund the general fund and capital projects). To reduce the operating-cap exposure, staff proposed shifting several services off the city's books and pursuing third-party providers or sponsorships for recreation, daycare, senior programming and events.
Why it matters: Council members said the city must act now to avoid exceeding the operating cap in the coming budget year; staff and several council members said outsourcing would preserve service availability while removing recurring city expenses. Opponents warned outsourcing could increase fees for residents and urged finding the money elsewhere.
Votes at a glance: - Daycare/aftercare (estimated $177,000): Motion by Councilman Schmidt, seconded by Councilman Walker; council voted to outsource and remove the $177,000 expense from city books (vote recorded 5–1). - Senior programming (estimated $58,732): Motion by Councilman Schmidt, seconded by Councilman Browning; council voted to outsource and remove the $58,732 expense (vote recorded 5–1). - Fireworks, concerts and parades (approx. $30,830, $62,000, $16,000): Motion to remove these expenses pending exploration of sponsors/alternate funding passed 5–1. - Proposal to remove city funding for Emerald Coast Fitness Foundation (pool), the Chamber of Commerce and the Economic Development Council: Motion to cut city funding failed after public testimony and debate. - Tentative maximum millage: Motion by Councilman Browning, seconded by Councilman Merrell to set the maximum city millage at 5.6900; motion carried 4–3. The ceiling may be lowered during the budget process but cannot be raised after tonight's filing.
Council discussion and public input centered on two tensions: (1) the immediate need to reduce the city's personnel/operating exposure to avoid potential noncompliance with the charter cap, and (2) the potential consequences for residents if private vendors raise participation fees. Mayor and staff emphasized that many outsourced programs would continue to operate in the same facilities, often with the same instructors, but with vendors collecting fees directly.
Wendy Riggs of the Recreation Department, speaking at the podium, sought to reassure residents that programming continuity would be a priority: "Nothing will change," she said, explaining that a vendor would collect fees and remit what is due to the city while running the classes.
Economic development and community groups made in-person appeals. Mr. Sparks, representing the Okaloosa EDC, urged caution in cutting funding to the EDC and highlighted recent local deals facilitated by the organization, saying, "I think the return on investment is phenomenal." That presentation appeared to influence some council members to maintain at least a portion of those partnerships.
Several council members pushed back on the millage ceiling. Councilman Walker said staff’s high-end millage projection equated to a substantial tax increase for property owners: "We are telling taxpayers that's a 31.6% property tax increase," he said during debate, drawing attention to the potential household impact if the full ceiling were levied.
What happens next: Staff will draft RFPs and pursue vendor conversations immediately on items council approved for outsourcing so transition work can begin ahead of the October 1 budget year start. The council set the maximum millage rate tonight to preserve options; the exact adopted rate and final budget allocations will be determined in subsequent budget hearings and readings.
Provenance: The council discussed millage and outsourcing measures throughout the meeting beginning with Item 4 (presentation by Mr. Davis) and concluding with the millage vote and adjournment.
