New Smyrna Beach sets tentative millage ceiling at 4.887% and adopts budget resolutions

The New Smyrna Beach City Commission on July 23 set a tentative ceiling for next year’s property-tax rate and approved a package of budget resolutions, including retirement of an older debt service, a proposed debt-service millage, a proposed general-fund maximum millage and a stormwater fee.

Mayor Cleveland opened the special meeting saying its purpose was to “set the top limit of the millage,” and the assistant finance director, Shaliza Bola, reviewed a proposed FY2024–25 budget totaling about $138 million and the revenue implications of possible millage increases. “The millage that we used is the 4.637,” Bola said, and she illustrated additional revenue if the commission chose a 0.25-, 0.5- or 1.0-mil increase.

Why it matters: the commission’s action sets the maximum rate it may adopt later this fall; the tentative rate does not itself raise taxes but gives the commission flexibility as it finalizes the budget at subsequent hearings. City staff also said the city holds roughly $10.3 million above the 25% reserve requirement, a factor members discussed when weighing whether to use reserves to reduce rate increases.

Debate and votes Commissioners debated how much flexibility to preserve for the budget workshop. City manager (unnamed) urged caution while offering an operational recommendation: “My recommendation is to go between either the 0.5 or the 0.25 ... my recommendation would be to add the 0.25,” he said, arguing the ceiling gives room to add or remove items later. Vice Mayor Perrine pushed for a smaller or no increase, saying the commission could drill into line items: “I would just either go 0 or 0.1,” Perrine said.

After discussion, the commission amended and adopted Resolution 50-24 to set the proposed general-fund maximum millage to include an additional 0.25 mill (totaling 4.887 for the general-fund component as reflected in the resolution). The final roll-call votes on each resolution were recorded as unanimous.

Votes at a glance - Resolution 48-24 (retire 2005 debt service): adopted unanimously. (Motion by Commissioner Martin; second by Mayor Cleveland.) - Resolution 49-24 (establish proposed INS 2018 debt-service maximum millage 0.0914): adopted unanimously. (Moved from the floor; seconded.) - Resolution 50-24 (set proposed FY24–25 general-fund maximum millage; amended to add 0.25 mills): adopted unanimously. - Resolution 51-24 (set proposed stormwater utility fee at $8.667/month or $104/year per equivalent drainage unit): adopted unanimously; commissioners discussed the possibility of a higher fee but staff said changes beyond CPI would require public hearings and an ordinance amendment. - Resolution 52-24 (FY23–24 budget amendment to fund an emergency Brandon Center HVAC replacement): adopted unanimously; staff said one of four units had failed and funding was transferred from closed CIP projects to cover a replacement immediately.

Other topics raised - Public safety: during public comment, Leslie read a letter from retired Commissioner Jake Sachs urging the city to move forward with an FDOT-approved emergency signal at Station 52, saying the signal “is providing a proven safe and quick response time” and urging the commission to proceed with engineering and construction. - Fleet replacement and reserves: Vice Mayor Perrine suggested deferring some vehicle purchases so replacements could be paid from the fleet reserve instead of the general fund; staff said $1.2 million was in restricted fleet funds ($700,000 this year and $500,000 next) but that staged catch-up funding and further analysis would be provided at the Aug. 7 workshop. - Street lighting and ARPA: Commissioners pressed staff about dark stretches on Atlantic Avenue and whether ARPA funds could pay for lighting; staff clarified Flagler improvements were funded with ARPA but Canal and South Atlantic lighting (estimated ~$2.7 million) remain unfunded and would require general-fund transfers or new reserves.

What’s next The commission scheduled a public meeting Aug. 1 to discuss parking, a budget workshop Aug. 7 to review line items in detail, and the next regular meeting Aug. 13 in the chamber. The tentative millage ceiling adopted July 23 allows the commission to lower the rate before final adoption but not to raise it above the set maximum.