Deltona staff presents $208 million FY27 budget and outlines optional fire‑assessment to lower millage

Finance Director John McKinney presented the City of Deltona’s proposed fiscal year 2026–27 budget, totaling $208,035,947 citywide and $79,845,212 for the general fund, during a July workshop. Staff built the proposal on the Volusia County rollback millage of 6.4948 mills and said the package includes $20,406,149 for capital improvements and roughly $8.2 million for fleet and equipment.

McKinney said the budget was prepared using conservative assumptions, including a 2% cap on operating budget increases imposed in March and a projected taxable‑value increase; he noted May CPI rose to 3.9% but the staff did not change the 2% parameter. He reported the city’s outstanding debt at $137,616,876 and available general‑fund operating reserves of about $26.45 million.

A central policy choice the commission discussed was a new fire‑assessment fee. Staff presented scenarios showing an operating‑only assessment (example figure cited: $433) would allow a corresponding reduction in the proposed millage of 2.5139 mills (resulting in a tentative millage of about 3.9809 mills). Staff recommended placing a maximum assessment amount of $579 on the TRIM notice to preserve flexibility; McKinney said the TRIM figure is the maximum the city would notify property owners about, not necessarily the final implemented rate.

McKinney outlined what the assessment would fund if fully adopted: replacement of specialty apparatus, engines and a multi‑station capital program (remodels and a proposed new station), phased over multi‑year schedules. He said operations and administration are the only elements that state law currently allows to be carved out for a stand‑alone assessment without additional authority.

Commissioners pressed staff on distributional effects. Commissioner Hamilton warned that some long‑term residents and 100% service‑connected disabled veterans could see sharp increases in their non‑ad valorem bills and urged protections for low‑income households. McKinney said staff will propose a hardship policy (a program up to $250,000 using SHIP income‑verification methods) to reimburse qualifying residents and that the city will present the policy language for consideration when assessments are considered for adoption.

Commissioner Novick and others asked what would be cut if the commission declined the assessment. McKinney said the currently proposed budget is balanced at the rollback millage and that the assessment primarily funds new capital for fire stations and apparatus; without the assessment, the city would either draw on reserves for one‑time capital or make difficult operating and capital cuts, or shift revenue from enterprise funds within legal limits.

Staff also flagged related assessments for residents: a maximum solid‑waste assessment of $287.76 driven by contract changes with Waste Pro and county tipping fees and a stormwater assessment set at $210 for year three of the study, rising toward $250 by year five.

Next procedural steps: staff will post the proposed budget and place the maximum millage and assessment limits on the TRIM notice during the July 20 regular meeting, with the tentative budget hearings scheduled for September 9 and final hearing for September 21. McKinney told the commission there is scope to adjust figures between the TRIM notice and final adoption.

The presentation also included fund summaries, CIP highlights (including $1.3 million general CIP and design funding for the Rhode Island extension), and discussion of completed studies that informed the proposal.