Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budget Methodology topic
No spam. Unsubscribe anytime.
Commissioners say FY2026budget jump reflects accounting changes, not new recurring spending
Summary
City staff told the commission the proposed FY2026 budgetincrease (from about $137 million to nearly $200 million) results primarily from including carryforward funds and creating new capital project funds, not a sudden rise in ongoing spending.
City staff told the New Smyrna Beach City Commission on July 22 that the apparent jump in the proposed fiscal year 2026 budget reflects accounting changes rather than a large increase in recurring spending.
"Including the full amount [of funds carried forward] this year adds $43,300,000 to the budget," Finance Director Director Jury said during a presentation of the city manager's recommended FY2026 budget, noting that historically those funds were only budgeted when used. He said staff also created dedicated capital project funds, adding about $6,600,000 in interfund transfers to establish airport, stormwater and impact-fee capital accounts.
The presentation listed several components that make the budget larger on paper: $36,300,000 in required and restricted reserves that are now shown in the expense plan, $17,700,000 in capital projects and one-time items such as $9,000,000 in grant revenue and $2,800,000 in loan proceeds. Director Jury said operating revenues (including property taxes) are up about $1,000,000, roughly 2% of the total increase.
Mayor Cleveland said the commission must present a concise message so residents do not mistake the accounting change for a large tax or spending increase. "We need to be able to tell the story that we're not spending $70 million more," the mayor said.
City Manager Joe Mandra described many of the moves as "paper transfers" intended to make fund balances and capital projects more transparent. "We want you to know they're there," Mandra said, adding the reclassification is a one-time reset to get the city's finances aligned and more understandable for officials and the public.
Several commissioners praised the greater transparency but asked that staff prepare clear comparative materials for public communication. Commissioner Perrine said showing the full amounts will make the budget easier to understand for residents and stressed the message that higher budget totals do not necessarily mean higher taxes.
The commission discussed slides and labels during the presentation; Director Jury acknowledged a typo that labeled a chart "increased revenues" when it described increased expenses and said staff would correct it. Commissioners indicated follow-up questions will be handled in the next workshop in August and that the adopted FY2026 budget figures will be available later.
The discussion on methodology concluded with a focus on public messaging rather than immediate policy changes: staff will return with clarifications and comparative materials to aid outreach to residents.
