Deltona City Commission Workshop on FY 2025-2026 Budget – July 14, 2025

The Deltona City Commission held a workshop on Monday, July 14, 2025, from 5:30 PM to 7:30 PM to discuss the proposed Fiscal Year 2025-2026 budget. No final decisions were made; the workshop served as a working session to review revenue estimates, operational budgets, special assessments, and capital plans. The meeting was led by Mayor Avila, with Finance Director John McKinney presenting. Two members of the public provided comments at the end of the session.

Public Comments & Testimony

• Courtney Crossburg (resident): Questioned the proposed $1 million in legal fees, suggesting participation in a class-action lawsuit to reduce costs. Also asked about the possibility of converting the city’s water utility into a cooperative to lower rates for residents.
• Pat Blog (resident): Expressed frustration over the prolonged delay in raising impact fees, criticized high water costs and the water quality, questioned the $1 million litigation budget, noted planned stormwater fee increases, and alleged that code compliance has been harassing residents.

Discussion Items

• Budget Overview & Key Drivers: Finance Director McKinney presented a total citywide budget of $234,051,275 and a general fund budget of $76,663,842, balanced at a proposed millage rate of 6.75 mills. Key cost drivers include a 2% CPI (May 2025), a 5% general employee salary increase (to remain competitive), a 10% increase in property/casualty insurance, flat health insurance (with potential reductions from a new vendor), and a 10% reduction in state revenue sharing. The budget includes $2 million in enhancements, $73.7 million in capital improvement projects (including $1 million for flood-prone land acquisition), and $5 million for capital replacement.
• Revenue Estimates & Rate Studies: Staff outlined plans to bring forward rate consultants for water/sewer, impact fees, building permits, and fire assessments. Impact fee study is expected to take 12 months and would not take effect until FY 2026-27. Commissioner Howington and Commissioner Lulli expressed concern about the lengthy timeline and urged expediting. The City Attorney noted that a general government impact fee may not be supported by sufficient capital needs. Discussion also covered stormwater and solid waste special assessments, which are proposed to be included on the TRIM notice to save on mailing costs.
• Water/Sewer Rates: Commissioner Lulli highlighted that Deltona’s water rates (especially tier 4: $17.98 per 1,000 gallons above 20,000 gallons) are far higher than neighboring utilities. He opposed any increase and requested a study on possible reductions. Vice Mayor Heriot asked for the base rate and tier structure. Finance Director McKinney acknowledged the issue and noted the rate consultant will address it.
• Fire Department and Transport Division: A new Fire Transport division is proposed, adding 6.9 additional personnel for a fourth transport unit at an estimated cost of nearly $700,000. Transport revenue and lost revenue recovery are expected to offset most costs, leaving about $143,000 from the general fund. The separation of transport from fire services is intended to comply with fire assessment rules. The budget also includes $25,000 for the Emergency Operations Center.
• City Commission Budget: Commissioner Santiago noted the commission budget shows a 302% increase, largely due to $1 million in litigation funds (related to potential lawsuit against SB 180) and $500,000 for fraud compliance. McKinney explained these are estimates based on prior discussions and auditor recommendations.
• Domestic Violence and Youth Programs: Vice Mayor Heriot requested a dedicated victim advocate within the Sheriff’s contract for Deltona, following a domestic violence homicide and increased reporting. Commissioner Avila-Vazquez noted existing non-profits and suggested using City Hall space for survivors. Commissioner Howington urged expanded youth programs for ages 12-16, with needs-based funding. Staff will explore grants and partnerships.
• Street Lighting: Vice Mayor Heriot and Commissioner Lulli asked about expanding residential street lighting, including dark-sky-friendly options. Staff reported rough estimates are being developed and will be presented in a future workshop (likely October/November).
• Millage Rate and Tax Base: McKinney provided historical millage rates and taxable value data. He noted that 18% of city parcels pay no city taxes, and the average residential taxable value is $123,000, up from $60,000 in 2020. The proposed 6.75 mills continues a trend of rate reduction.

Key Outcomes

• No votes were taken; all actions are preliminary and will be formally considered at upcoming meetings.
• Next steps:
  • July 21, 2025: Regular Commission Meeting to set the maximum millage rate and maximum special assessments (solid waste, stormwater, street lighting, Lake McGrady) for the TRIM notice.
  • August 25, 2025: Second budget workshop to incorporate final state revenue estimates and further refine the budget.
  • September 3, 2025: First public hearing on the tentative budget and millage.
  • September 15, 2025: Second public hearing to adopt the final budget and millage.
• Staff will provide additional details on vehicle replacement costs, vacancy reports, team Volusia expense reallocation, code compliance budget impacts, allocated support services costs, and street lighting feasibility and options.
• Commissioners were encouraged to meet individually with the Finance Director to discuss specific assessments prior to the July 21 meeting.