New Smyrna Beach approves $136 million FY2024–25 budget and raises operating millage after debate over staff pay

The New Smyrna Beach City Commission on Sept. 24 adopted its fiscal year 2024–25 budget and approved a 4.6370 mills operating millage rate, despite a lengthy, sometimes contentious discussion over proposed salary increases for senior staff.

Mayor Matt Cleveland announced the adopted budget and guided several votes that moved the meeting through a series of competing motions on how to phase or cap raises. City finance staff had earlier described total utility figures and a 10‑year capital plan: “approximately $83,000,000 in revenue, $68,000,000 in expenses, [and] a 10‑year capital budget of around $287,000,000,” Utilities CEO Ephraim Chavez told the commission during the budget presentation.

Commissioners debated a package of personnel increases that included single‑year raises described in the proposed budget as ranging from about 8% up to the high teens for select senior positions. HR Director Heather Kidd told the commission that some requests reflected prior‑year delays and compression issues for particular classifications. “Those 3 positions specifically” — two police captains and the deputy police chief — “are due to compression issues,” Kidd said, explaining overtime and classification history contributed to higher recommended increases.

Several commissioners said they were uncomfortable with large, single‑year raises and proposed phasing them over two years. Mayor Cleveland moved a compromise that would have split double‑digit raises into half this year and half next year, but that motion failed. Commissioner Martin voiced broad unease about the piecemeal nature of raises and asked for a comprehensive classification and pay study; other commissioners said they plan to commission that study in the coming months.

On the millage, the city attorney read Resolution 68‑24, which sets the operating millage at 4.6370 mills — a 13.62% increase from the rollback rate. The public hearing drew no speakers. The roll call vote on the millage was 3 in favor, 1 opposed: Commissioner McGurk — yes; Commissioner Hartman — yes; Commissioner Martin — no; Mayor Cleveland — yes. The same voting configuration later carried the final budget adoption (Resolution 70‑24).

The commission also approved other fiscal items on the agenda: Ordinance 54‑24 adopting the Utilities Commission budget and Resolution 71‑24 adopting the CRA budget. During discussion, Police Chief Feldman clarified that a previously awarded grant of about $70,000 will cover initial architect/engineering work for a proposed police boathouse with the city responsible for half of that amount if construction proceeds.

The commission’s debates repeatedly returned to process questions — when and how to fix long‑running compression and pay‑scale issues, how to budget multi‑year corrections, and how to balance market competitiveness with public expectations on prudent spending. Several commissioners urged a transparent multi‑year plan and an outside classification study to guide future raises.

Votes at a glance

- Resolution 68‑24 (operating millage at 4.6370 mills): Adopted, roll call 3–1 (McGurk yes; Hartman yes; Martin no; Mayor Cleveland yes). - Resolution 69‑24 (I&S debt service millage 0.0895 mills): Adopted (roll call recorded in meeting). - Resolution 70‑24 (final FY 2024–25 budget): Adopted, roll call 3–1 (McGurk yes; Hartman yes; Martin no; Mayor Cleveland yes). - Ordinance 54‑24 (Utilities Commission budget): Adopted (second reading). - Resolution 71‑24 (CRA budget): Adopted.

The commission adjourned after brief commissioner reports and storm‑preparation reminders from staff. The city manager and department heads said crews are staged and sandbags are available as the region monitors Tropical Storm Helene.

Next steps: Commissioners indicated they will pursue a new classification and pay study in coming months and will return to staffing and compensation questions in future budget cycles.