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Lynn Haven officials map deep FY27 cuts, weigh millage ceiling after new state law
Summary
City staff presented FY27 scenarios showing a multimillion-dollar shortfall and outlined proposed measures — hiring moratorium, no COLA, benefit and events cuts, possible furloughs and outsourcing — while asking commissioners for a maximum millage ceiling by July 28.
Mayor opened a budget workshop and City Manager Kiki laid out FY27 options after recent state changes, telling commissioners: “A 3 to 2 vote, we would have a 3.9707 millage rate, with a deficit of $11,472,000. A 4 to 1 vote at a 4.367 millage, a deficit of negative $794,000…and to break even…our millage would have to be a 4.8306.”
Kiki said staff has removed all General Fund capital improvement projects for FY27, suspended vehicle purchases and placed a hiring moratorium on general-fund positions except critical roles such as police and firefighters. “There will be no proposed COLA for fiscal year 27,” Kiki said, while noting the first-year salary-study adjustments will be implemented for some positions.
The city outlined several proposed cost-saving measures: reduce leave-accrual liabilities, cut paid holidays from 13 to 11 (estimated savings about $22,000), eliminate the PTO buyback program (estimated $200,000 savings), and remove retirement and longevity bonuses. Staff also proposed removing part-time-employee benefits for those working under 32 hours per week while allowing some positions to be increased to 32 hours where feasible.
Staff described program and service reductions under consideration. All city-funded special events would be taken out of the base budget and staged only if sponsorships are secured in advance (90 days for most events; 180 days for major events such as July 4). Kiki said staff is exploring outsourcing routine work (culvert installation, asphalt repairs, janitorial services) and restructuring health-insurance contributions to reduce employer costs.
On enterprise funds, staff recommended a 3% stormwater rate increase and said sanitation rates have not been raised in at least six years. A 2019 Stantec study recommended a $12.88 monthly yard-debris charge that was never implemented; staff said that option remains on the table. Sanitation reserves were reported at about $3.3 million and are expected to decline by roughly $500,000 by year-end, leaving just under $3 million in reserves.
Commissioners pressed on tradeoffs. One commissioner asked whether cutting events while employees receive no COLA would send the wrong message; another urged using the Community Services Board and business outreach to pursue sponsorships. Staff pointed to a recent $2,500 business donation for the dog park and preliminary July 4 accounting showing roughly $126,000 in expenses and $15,750 in contributions, leaving a net city cost of about $110,849.50. Staff told commissioners that breaking even on July 4 would require roughly $125,000–$150,000 in sponsorships.
Staff also asked the commission to set a maximum millage (trim notice) by July 28; dates for the tentative and final budget adoptions were set for Sept. 8 and Sept. 22 at 5:30 p.m. Staff said another workshop focused on staffing (including possible furloughs or reductions in force) will follow in August.
The meeting included public input from a finance-committee member who urged commissioners to protect senior services, arguing the senior center’s $10,000 annual support should be preserved even as broader cuts are considered. The commission closed the workshop and directed staff to circulate the presentation and return with more detailed staffing and revenue projections at the next meetings.
