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New Smyrna Beach presents $136.9 million FY2025 budget; commissioners press on reserves, ARPA and parking shortfalls
Summary
City finance staff told the commission the FY2025 budget is balanced at $136.9 million while flagging restricted cash, a $991,000 year-to-date parking fund deficit, $633,000 in ARPA interest still available and borrowing capacity remaining on the Turnbull Creek bond. Commissioners pressed for clarity on reserves and fund flexibility.
On March 13, 2025 at the Brandon Center the New Smyrna Beach city finance director presented a high-level financial overview that staff said is intended to anchor the commission's strategic budget alignment.
"It is balanced with a $136,900,000 in both revenues and expenditures," Finance Director Joanne told commissioners as she walked through the FY2025 adopted budget and line-item breakdowns. She said property taxes make up roughly 28% of the city's revenues, charges for services about 24% and funds carried forward 16%.
Joanne said the city's cash position stood at about $103 million as of late February 2025, but roughly 79% of that cash is restricted for specific purposes, leaving about $21 million unrestricted. She also reported total outstanding debt around $31.4 million and said the city's debt service equals about 4.3% of legally available revenues.
Commissioners focused questions on fund-specific issues during a follow-up exchange. Vice Mayor Martin asked about the property tax collection rate; Joanne said the city typically budgets conservatively (about 95%) and that collection is generally strong.
The parking fund drew particular scrutiny. Joanne acknowledged a year-to-date deficit of roughly $991,000 that reflects a $1 million transfer to capital projects: "At the end of February there is a $991,000 deficit," she said, noting available fund balance carried forward from prior years is being used to cover one-time capital transfers. Commissioners asked whether the parking fund can repay transportation or other funds; Joanne said appropriate use depends on the purpose of the building or activity and would require review against charter and ordinance constraints.
On American Rescue Plan Act (ARPA) funds, Joanne said required encumbrances were met by the statutory deadline and that the remaining $633,000 in the ARPA fund represents interest and nonrestricted amounts that could be reprogrammed with commission direction.
Commissioner McGirt and others pressed staff on Turnbull Creek bond capacity. Joanne said the 2018 voter-approved referendum authorized $15 million, of which the city borrowed $9.5 million; the city has roughly $5.5 million of additional borrowing capacity under the referendum, though future interest rates would affect the cost of new borrowing.
Mayor Cleveland and colleagues emphasized the need for measurement and for connecting strategy to budgeting. "You must measure, measure, measure," the mayor said in the meeting, reiterating a recurring theme that budget decisions should be tied to measurable strategic objectives.
Next steps: City Manager Kevin Cowper said staff will use the commission's feedback to refine priorities and present recommended links between strategic priorities and the upcoming budget development schedule. The commission's formal budget work is expected to begin in April; staff said they will return with more detailed reserve and fund-use options during the budget process.
