Dunedin City Commission FY 2026 Budget Workshop #1 – July 18, 2025

The Dunedin City Commission held its first FY 2026 Budget Workshop on July 18, 2025, at City Hall, 737 Louden Avenue. The meeting ran from 10:00 a.m. to 4:35 p.m., with breaks at 10:20–10:35 a.m., lunch from 12:30–1:45 p.m., and an afternoon break from 2:50–3:05 p.m. Mayor Maureen 'Moe' Freaney, Vice Mayor Jeff Gow, and Commissioners Tom Dugard, Steven Sandbergen, and Robert Walker were present, joined by City Manager Jennifer Bramley, Finance Director Les Tyler, and numerous department heads. The workshop was informational; no formal votes were taken, but the Commission gave several consensus directions. The agenda and minutes reflect a 10:00 a.m. local start, while the supplied source timestamp for the event is 2025-07-18 15:00:00+00:00.

Opening Remarks

• City Manager Bramley explained that the traditional separate Municipal Business Plan Workshop was not held this year because the new digital budget book and strategic planning allowed staff to operate at a higher level.
• Finance Director Tyler noted the FY 2026 proposed budget is available in ClearGov as the city's first digital budget book, with positive public feedback on readability.
• Mayor Freaney stated that the Commission had adopted the maximum millage rate of 4.1345 the previous night; the rate can be lowered later but cannot be increased.

New Initiatives & CIP Projects

Staff presented new FY 2026 Business Plan Initiatives (BPIs) and Capital Improvement Program (CIP) projects by department. Highlights included:

Community Development

• Beltrees Street ADA Improvements – $15,560, funded from Impact Fee-Multimodal, to implement recommendations from the approved Complete Streets Plan, including ADA ramps and a potential roundabout. Staff expects grant funding may be available.

Finance

• Penny For Pinellas V 2030–2039 project list – no cost impact to begin developing the city's Penny project list; the County may require information by March–June 2026. The city currently receives approximately $5.1 million annually from Penny For Pinellas, and if the schedule follows Penny IV, it would go to voters in November 2027. Commissioner Dugard asked about Penny spending requirements; staff confirmed Penny funds must go to capital projects with a useful life/service life of at least seven years.

Fire Department

• Bunker gear drying equipment – $30,000 for two stations, needed because NFPA rules now require more frequent washing of turnout gear to reduce carcinogen exposure.
• Computer replacements for operations and administration – $155,500, driven by Pinellas County's end-of-life 911/CAD system replacement. Staff said the purchase would be required only if the county program proceeds and would also support the city's Emergency Operations Center.
• Dry suits and PPE for water rescue – $30,000, replacing equipment that reached end of life during recent storms.
• Engine and fire pump overhaul on reserve apparatus – $102,000 in FY26 and $102,000 in FY27, to prepare reserve engines after the new engine arrives in December 2025.
• Firefighter agility and training equipment – $48,000, to allow daily task-specific training and in-house pre-hire physical agility testing.
• Rigid hull inflatable boat – $57,000, to improve flood rescue capability; staff reported 100 911 calls and 65 successful rescues during the previous flooding using Jon boats that had limited access and patient capacity.
• SHERP amphibious all-terrain rescue/fire suppression vehicle – planned for FY28 at $270,000. Deputy Fire Chief Handoga noted the vehicle is on the Florida Sheriff's Office cooperative purchasing contract and is used by larger departments. City Manager Bramley expressed concern about having future rescue capability and supported the inflatable boat as a near-term priority. Commissioner Sandbergen asked whether any Pinellas municipality has purchased SHERPs; staff said the Pinellas Sheriff's Office is evaluating them but has not yet purchased.

HR & Risk Management

• Public Safety Mitigation – $80,000 funded from existing Law Enforcement Impact Fees, not a new budget request, for additional special-event barriers and possible permanent downtown safety measures such as bollards. Staff noted the Sheriff's Office has two electric bikes in its own budget.

IT Services

• Microsoft Teams Phone System – planned for FY28 at $220,000, replacing the city's roughly 20-year-old phone system and reducing the number of physical phones.

Library

• Replacement of Library fluorescent light fixtures – $152,000, fully funded by a bequest; existing fixtures are 29 years old and beyond useful life.

Parks & Recreation

• Dunedin Community Center/Edinburgh Hall lighting – FY28 placeholder of $25,000, and sound system upgrade – $78,000, to replace original 2007 equipment and meet the needs of six performing groups and internal programming.
• Electrical panel replacements – $50,000 for Edgewater, Weaver Park, and four Fisher Fields panels.
• Fisher Little League Complex lights – multi-year project: FY26 $115,000; FY27 $120,000; FY28 $120,000; FY29 $230,500; FY30 $126,000; FY31 $126,000, with LED fixtures and remote operation; existing poles are grandfathered and will remain.
• Hale Senior Activity Center interior painting – FY28 $55,000.
• MLK Jr. Recreation Center playground fence replacement – FY29 $45,000.
• Dunedin Golf Club locker room remodel – FY26 $25,000 and FY27 $125,000, to repurpose underused locker space for golf association meeting areas; rain and starter shelters – $40,000.
• Marina bulkhead replacement and repair – $3,240,000, to be adjusted to the lower bid received; the $3.9 million six-year figure will be revised.

Public Works

• Evaluation and retrofit of fire buildings for hurricane hardening – $75,000.
• Fence replacements at Public Services Complex – $30,000 each from Facilities Maintenance, General, and Stormwater funds; these hurricane-damaged fences are not FEMA-eligible due to age and condition.
• Public Works storage buildings – FY27 $300,000 from General Fund and $300,000 from Stormwater Fund, for downtown hurricane/barrier equipment storage.
• Replacement of Fleet Services Building design – FY30 $250,000 from Penny Fund.
• Work planning and management software – $50,000 in each of five funds: Facilities Maintenance, Fleet, General, Solid Waste, and Stormwater; staff expect to bring a $110,000 piggyback purchase to the Commission on August 7, 2025, funded through efficiency savings.

Utilities & Engineering

• Chlorine contact chamber cover – FY27 $50,000 and FY28 $450,000.
• Forcemain #31 replacement and extension – FY27 $50,000 and FY28 $1,250,000 in the Greenbriar area.
• Michigan/Harvard gravity main evaluation – FY26 $100,000, with FY27 $600,000.
• WWTP administration building hardening – FY27 $1,175,418, with a Hazard Mitigation Grant application pending.
• WWTP emergency generator building rehabilitation – $1,460,000.
• Mayor Freaney raised the Weybridge bridge issue. Utilities Director/City Engineer Watkins said inspection produced three cost estimates, including a full replacement around $2.2 million; project analysis and design are included in FY27 as a General Fund expenditure, and staff will bring it back for a decision. City Manager Bramley clarified the city is seeking an easement, not asking residents to give up land.

Projects Removed from the Business Plan

• Staff recommended removing implemented/ongoing items: Bike/Ped Action Plan, Budget & Planning Cloud Software, and Downtown Looper.
• Staff recommended marking inactive/cancelled: Curlew Road Water Main Replacement, Decorative Furniture, Lofty Pines Septic to Sewer, Parking Sensors, Septic Tank Abatement Incentives, Stirling Skate Park Street Course, Stirling Park Driving Range Lights, and Water Plant Secondary Electric Feeder.
• Commission consensus direction: keep Lofty Pines Septic-to-Sewer and the Downtown Looper in the Business Plan. Vice Mayor Gow expressed concern that removing projects reduces the incentive to seek grant funding; City Manager Bramley responded that staff continues to pursue grants regardless and that inactive business plan items devalue the plan.

City Commission Discussion on Initiatives

• Vice Mayor Gow suggested creating a transportation-focused staff position similar to the sustainability coordinator role, to work regionally on transportation solutions.
• Commissioner Sandbergen suggested new entry signs at CR 1 and Alt 19, similar to downtown signs.
• Commissioner Walker supported formalizing the Dunedin Boat Club public/private partnership and making Dunedin a sailing center of excellence again.
• Commissioner Dugard proposed an outreach program to address senior social isolation, noting Dunedin's median age is 57, and also suggested researching storm preparedness beyond infrastructure to help citizens feel protected.
• Mayor Freaney emphasized maintenance of city facilities, suggested including Blue Jays and Scottish heritage in entry signage, requested review of sidewalk connectivity from Mease Life to downtown, and suggested exploring restoration of a centralized volunteer coordinator position lost around 2009.

Public Comments & Testimony

• Jeanette Donaghue of 882 Michelle Circle spoke on behalf of the Dunedin Chamber of Commerce board chair. She said the Chamber worked with the city for decades, supported merging with the Dunedin Downtown Merchants Association, and believed Mardi Gras, produced by the DDMA for over 30 years, is no longer financially sustainable as a private event. She stated the community does not want the event to end, but if the city is unwilling to take it on, it likely will not happen; the Chamber asked the city to take the lead.
• Michael Bryant of 937 Douglas Avenue supported the city taking on Mardi Gras. He said the event made money when volunteers ran it, but a promoter now takes the profits. He argued the event is good for Dunedin's branding, the city already has the blueprint for similar events such as the Christmas parade, and the event previously supported itself, so it would not negatively affect the budget.

Storm-Related Expenses & Reimbursement

• Finance Director Tyler presented storm damage estimates as of late June 2025: citywide estimated costs of $19,629,821; expected FEMA reimbursement of $16,234,302 (75%); expected state share of $1,697,759 (12.5%); and city match of $1,697,759 (12.5%).
• The city has received $2.3 million of the FEMA reimbursement, primarily expedited debris removal funds. Staff expects the remainder of FEMA funds to be mostly obligated by December 2025, with some projects taking about two years or longer.
• Staff estimated the city will need a $14–15 million line of credit, with roughly $800,000 per year in debt service, repaid from FEMA reimbursements. Combined with the Aquatic Complex and parking garage, this would keep the city just under the 20% debt threshold, around 19–19.5%. Current debt is approximately $98 million, of which roughly $31 million relates to the Blue Jays and is paid from other revenue sources.
• The General Fund's five-year net storm cost is projected at $917,084; after backing out the approximately $1.6 million pier project already budgeted, the General Fund is slightly better off assuming FEMA and state reimbursement is received as expected. The Marina Fund will have additional costs.
• Consensus direction: staff will provide a debt 'cheat sheet' showing the debt components, sources, and payers, and clearly identify essential utility debt.

Revenue, Expenditures and Long-Range Projections – All Funds

• As of May 30, 2025, Pinellas County estimated Dunedin's taxable property value increase at 4.69%; the certified July 1, 2025 value is 5.21%, increasing tentative General Fund revenue by about $74,000. The CRA/TIF district estimate rose from 4.83% to 6.33%, increasing CRA revenue by about $34,000. Pinellas County growth was 3.77%.
• The proposed FY 2026 budget keeps the millage rate at 4.1345, unchanged since FY 2016.
• FY 2026 revenue assumptions include: General Fund other taxes down 4.6%; Penny Fund revenue up 2.0%; County Gas Tax down 2.5%; Solid Waste rates flat at 0% pending a rate study; Water/Wastewater rates up 15% per Ordinance 25-04; Stormwater rates up 29.9% per the rate study approved July 11, 2024.
• Expenditure assumptions include a 3.5% merit increase for eligible staff, Fire Union contract increases, an 11% health cost increase over FY25 budget (with final numbers to be presented August 6, 2025), and generally 3% increases in controllable operating expenditures.
• General Fund: FY26 available fund balance is projected at 15.7%, above the 15% target. The budget started with a $3 million shortfall; about $3.3 million in reductions or deferrals brought FY26 into balance. The projected structural deficit for FY27–FY31 is about $5.8 million per year, up from $2.1 million in last year's forecast. City Manager Bramley stressed that only FY26 is being adopted and out-year forecasts are planning tools. Finance Director Tyler recommended a two-pronged approach: review user fees and reduce costs, and likely phase in a millage increase over two years in FY28 or later; he noted a one-mill increase from 4.1 to 5.1 would generate about $4.7 million more per year, without recommending that amount.
• Stadium Fund: $550,000 transfer from the General Fund in FY26 and $650,000 per year in FY27–31; insurance costs have risen substantially, and a reserve is set aside per the Blue Jays agreement for stadium capital needs.
• Impact Fee Funds: combined revenue and expenditures include Beltrees ADA improvements, the law enforcement public safety mitigation project, and reduced capital due to the Douglas and Pedestrian Safety Crosswalk projects.
• Public Art Fund: a $37,000 payment from the J Hotel development allows no General Fund transfer in FY26; the fund will be monitored.
• Building Fund: FY26 ending available fund balance of $1.8 million, with state guidance to keep fund balance near four years of expenditures; fees were reduced in FY21 and permit activity remains slightly higher each year.
• County Gas Tax Fund: FY26 ending fund balance estimated at $134,000; gas tax revenues are flat or declining, and sidewalk maintenance funding has been reduced.
• Penny Fund: FY26 ending available fund balance of $2,360,402; Penny IV expires December 31, 2029; the Highlander Aquatic Complex is funded from Penny and General Fund sources, with a $1 million donation over three years ($500,000 in FY25, $250,000 in FY26, and $250,000 in FY27).
• ARPA Fund: total ARPA funding is approximately $18.3 million; $4,710,905 was accounted for in the General Fund as revenue recovery and $3,040,025 in the Golf Operations Enterprise Fund. The projected FY26 ending balance of $521,376 is interest earnings not part of the grant.
• CRA Fund: FY26 ending available fund balance of $431,016; the County's contribution will now be based on the city's 4.1345 millage rate rather than the County's higher rate; the parking garage is projected at $9,160,000 in debt proceeds.
• Solid Waste Fund: FY26 ending available net position is projected at $5,612, very tight, with no rate increase in FY26 and a rate study underway; an enclaves/efficiency workshop will be held August 5, 2025.
• Water/Wastewater Fund: FY26 ending available net position is $12,826,287, or 57.4%, above the 25% goal; revenue includes the 15% rate increase, a $5 million SRF loan for the wastewater electrical upgrade, and a projected $15 million bank loan; a placeholder $15 million loan is included in 2029.
• Stormwater Fund: FY26 ending available net position is projected at $316,937, or -2.3%; rates increase 29.9% in FY26 and 19.2% in FY27; a USDA Emergency Watershed Protection Grant of $4.6 million supports gabions and ditch maintenance; an approximate $2 million loan is anticipated in FY27.
• Marina Fund: projected FY26 ending available net position of $577,687, or 114.1%; plans call for moving boat ramp revenues and expenditures to the General Fund; $250,000 of the $500,000 business interruption insurance payment was applied to the Marina Fund.
• Golf Operations Fund: projected FY26 ending available net position of $323,631, or 10.0%, below the 25% goal; $250,000 of business interruption insurance was applied to the Golf Fund; grandfathered member rates end in January 2027.
• Fleet Fund: FY26 ending available net position of $9,028,743; the General Fund plans to repay the $5 million interfund storm loan, with staff recommending repayment in full to retain flexibility for future storms.
• Facilities Fund: FY26 ending available net position of $1,039,637.
• Risk Safety Fund and Health Benefits Fund: detailed reviews were deferred to the next budget workshop; FY26 ending available net position figures shown were $3,722,422 for Risk and $768,704 for Health Benefits, but those numbers may change.
• IT Services Fund: FY26 ending available net position of $724,572; departmental allocations are 12% lower due to reduced capital costs, and the computer replacement program will shift to laptop-and-docking-station deployments.

Personnel Requests

• HR/Risk Management Director Smalling reviewed staffing history: 13.5 full-time positions were added through FY2025, and a VOD audit showed some employees moving from variable on-demand to part-time status as an FTE swap.
• City Manager recommendations included reclassifications for Fire Deputy Chief of EMS, Fire Marshal, Deputy Chief of Operations, and a Facilities Services Foreman in Public Works, plus new golf cart range assistant positions funded within existing Golf Operations budget without additional FTE impact.
• Not recommended: Fire Lieutenant Rescue and Firefighter Paramedics, because the County did not approve the positions; County is freezing added positions. Fire Chief Parks said priority dispatch was cited by the County but was not the actual reason the city did not meet the criteria. The Commission may schedule a future workshop on priority dispatch.
• Fire Inspector and Community Risk Reduction Specialist positions were also not recommended.

Key Outcomes

• Consensus to keep Lofty Pines Septic-to-Sewer and the Downtown Looper in the Business Plan.
• Consensus to direct staff to prepare a debt explanation sheet showing debt sources, payers, and essential utility debt.
• Consensus to have staff complete an objective analysis of the Dunedin Chamber of Commerce's Mardi Gras proposal before responding, and to conduct a broader holistic review of city special events, with new Parks & Recreation Director Tony Mulkey leading the work; the Commission expects a report after the new year.
• Commission suggestions for further staff analysis included a transportation outreach position, entry signage, formalizing the Dunedin Boat Club partnership, senior social isolation outreach, storm-related psychological preparedness, Mease Life sidewalk connectivity, and exploring a volunteer coordinator position.
• Mayor Freaney reiterated her priority to live within the current millage rate and to treat any tax rate increase as a last resort.
• Next steps: Solid Waste/enclaves workshop on August 5, 2025; FY 2026 Budget Workshop #2 on August 6, 2025; first public hearing on the tentative millage rate and tentative budget on September 11, 2025; second and final public hearing on September 23, 2025. The meeting adjourned at 4:35 p.m.