Sanford commission reviews proposed FY2027 budget, flags $9.3M risk if state property-tax reform passes

The Sanford City Commission reviewed the city manager’s proposed fiscal year 2027 budget at a July 8 workshop, where staff presented a balanced plan that includes a 0.1-mill reduction in the city’s ad valorem rate and a number of unfunded priorities.

“Tonight, we are presenting to you our proposal for the City's 27th fiscal year plan,” said Bonaparte, who opened the session and explained the package staff had prepared for commission review. He told commissioners the proposal does not fund 26 requested positions and recommends about $5.9 million of capital spending while leaving roughly $14 million of capital requests unfunded.

Finance staff briefed the commission on revenue projections and the budget timeline. “Property taxes are going up about $2,400,000 or about 2.77% increase in revenue,” Ms. Lindsey told commissioners while noting the proposal factors in a 0.1-mill decrease in the proposed millage rate.

The presentation included specific scenarios the commission could consider: keeping the proposed rate at 7.225 mills (the staff proposal), moving to the rollback rate (which staff estimated would decrease revenue by about $2.3 million), or pursuing a higher millage. Ms. Lindsey said an increase of 0.5 mills would raise approximately $3.4 million for the city.

Commissioners pressed staff for line-item detail across departments, citing examples such as how closed-captioning and streaming costs were coded in the communications budget and whether certain printing charges had been miscategorized. Staff acknowledged a few account coding issues and said corrected detail and handouts would be provided.

Beyond the immediate proposal, staff repeatedly flagged a pending statewide property-tax reform on the November ballot. Bonaparte said staff’s modeling showed that if the reform passes, the city could lose “$6,000,000” in the first year and another “$3,300,000” the following year, for a total of $9.3 million over two years.

The budget presentation also emphasized reserves and long-term capital needs. Finance recommended a minimum 25% general-fund reserve; the city’s current level is roughly 17.9%, a shortfall the staff estimated at about $6.2 million. The capital-improvement plan (CIP) discussion later in the workshop showed a five-year capital shortfall in public works on the order of $26 million.

Commissioners debated personnel requests and timing. Staff listed about 26 positions requested but not funded in the proposal, including public-safety roles and administrative positions. Several commissioners proposed delaying hires until after the November 4 ballot so the commission could see whether the state-level change shifts revenue expectations. One commissioner suggested holding off on any hiring until after that date; others said the city manager should present contingency organizational charts that would preserve essential services.

Staff also briefed the commission on a new state transparency law effective Jan. 1, 2027, that will require more interactive online budget tools, public posting of budget calendars and employee pay data, and a supermajority threshold for millage rates above 110% of the rollback rate.

The commission did not take votes at the workshop. Staff asked commissioners to submit follow-up questions by email and said the next scheduled meeting could be canceled or used to handle open items.

The commission adjourned after agreeing to continue any remaining discussions in standing work sessions and to receive corrected materials and additional detail from staff before the tentative millage certification deadlines.