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Fort Pierce commission backs FY 2026–27 budget using rolled‑over capital funds as state tax changes loom
Summary
Fort Pierce commissioners agreed to a $73.0 million spending plan that uses about $3.8 million in previously appropriated but unspent capital funds to advance priority projects, while warning a proposed state property‑tax amendment could cut ad valorem revenue by millions over the next three years.
The Fort Pierce City Commission on Wednesday approved a FY 2026–27 budget that relies on $3.8 million in rolled‑over capital funding to cover one‑time projects and a proposed 6.9 millage rate on the TRIM notice.
Budget presenter Miss Morris outlined the package after walking commissioners through changes in state law that affect local property‑tax calculations. "Senate Bill 4 f was signed by our governor on June 24, and it limits how local governments can calculate the increase or the maximum property tax millage rate," she said, noting new thresholds at 110% of the rollback rate and stricter requirements if the commission seeks a higher rate.
The commission’s decision favored "Proposal 2," which funds $1 million of capital in the general fund and unlocks an additional $3.8 million in previously appropriated but unused balances to address deferred facility and equipment needs. Commissioners emphasized that the rollover money consists of prior appropriations that returned to fund balance and is not a draw on the 10% reserve policy.
Commissioners repeatedly raised the larger fiscal risk on the horizon: a proposed constitutional amendment on the November ballot that would expand homestead exemptions and cap non‑homestead assessments. One commissioner warned, "Our $67,000,000 budget is going to lose 4.5 and $10,000,000 over 2 years," describing a multi‑million‑dollar revenue shortfall that could force cuts or new revenue strategies.
Staff supplied a five‑year forecast showing the city's ad valorem revenue could fall from about $34 million today to roughly $29–30 million by 2029 if the amendment passes, creating a structural gap in subsequent budgets. Commissioners discussed options including fee studies, tighter capital prioritization and an aggressive annexation strategy to broaden the tax base.
The approved budget keeps the general fund balanced without using one‑time reserves to cover recurring costs; it also delays cost‑of‑living increases for employees and adds three code‑enforcement positions funded in part by FPRA transfers. The commission asked staff to return to future meetings with more detailed debt‑service and receivables reports and to finalize the TRIM at the 6.9 millage the city manager recommended.
The commission voted verbally in favor of Proposal 2 and directed staff to post the presentation and related materials to the meeting record. The budget adoption is effective for the fiscal year beginning October 1, 2026, and the commission signaled it would review implementation and any state developments at subsequent meetings.
