Dunedin City Commission Special Meeting on Tentative FY 2026 Budget and Millage Rate - September 11, 2025

The Dunedin City Commission held a special meeting on September 11, 2025, at Dunedin City Hall, beginning at 6:00 p.m., as the first public hearing for the FY 2026 tentative millage rate and operating/capital budget. Mayor Maureen “Moe” Freaney, Vice Mayor Jeff Gow, and Commissioners Tom Dugard, Steven Sandbergen, and Robert Walker were present. No members of the public attended in person or spoke during citizen input or the public hearings. The Commission unanimously approved both resolutions, and scheduled the second and final public hearing for September 23, 2025.

Public Comments & Testimony

• No speakers came forward during citizen input or during the public comment portions of Resolution 25-22 or Resolution 25-23. There were no attendees in the audience.

Discussion Items

• Resolution 25-22 — Tentative Millage Rate: Finance Director Les Tyler presented the proposed rate of 4.1345 mills, or $4.13 per $1,000 of assessed property value, as required by Florida Truth in Millage (TRIM) law. The rate is 5.43% above the 2025 rolled-back rate of 3.9216 mills. Ad valorem taxes are budgeted at a 95% collection rate, the statutory minimum, and are projected to generate $17,850,031 in General Fund revenue, approximately 32% of total General Fund revenues for FY 2026. The maximum millage rate was originally established through Resolution 25-18 on July 17, 2025.
• Budget Process and Tentative Budget Changes: City Manager Jennifer Bramley reviewed the long budget process, which began in March 2025, with all-day workshops on July 18 and August 6, 2025. She noted that the FY 2026 budget is a one-year budget covering October 1, 2025 through September 30, 2026, includes a 2% operating cost increase, merit raises of up to 3.5%, and no new positions. Finance Director Tyler summarized changes since the August 6 workshop, including moving 75% of the Highlander Aquatic Complex construction cost to FY 2027 while keeping the total project cost unchanged; reclassifying a $1.9 million stormwater Gabion project from operating to capital; moving the Water Administration Hardening Project from FY 2027 to FY 2026 due to grant funding; and reclassifying GASB 96 subscription-software costs into debt service. The all-funds tentative budget totals are $164,436,783 in revenues and $156,210,946 in expenditures.
• Follow-Up Memo Items: Staff reported on five items from the workshops. The Dunedin Boat Club & Sailing Center public restroom project will use $63,400 in existing ARPA/General Fund dollars, $47,740 in insurance proceeds, and $100,000 as a FY 2027 placeholder, with up to $29,248 in additional insurance proceeds available if the city rebuilds. A Mease Life Sidewalk Crosswalk Enhancement project was added to the CRA Fund at $12,000 for design, with construction cost-sharing to be determined. A VOD/FTE audit increased the reported FTE count by 14.10, but staff stated this was a calculation correction with no budget increase; the Commission asked staff to present VOD/FTE data more clearly in future budgets. The Weybridge Woods Bridge project was revised from $2.5 million to $150,000 in design in FY 2026 and $1 million in construction in FY 2027, with $65,000 from the Enterprise Utility Fund and the remainder from the General Fund.
• Structural Deficit and Long-Range Outlook: Finance Director Tyler presented a General Fund No Capital scenario showing that removing capital projects from FY 2027 through FY 2031 reduces the projected shortfall from about $5.8 million to about $2.95 million per year, meaning roughly 51% of the shortfall is driven by operating costs and 49% by capital. The FY 2026 tentative budget projects a General Fund ending unassigned fund balance of $13,364,761, or 29.4%, well above the 15% target. The projected long-range shortfall is $5.525 million per year for FY 2027 through FY 2031. Staff said they will develop a multi-year plan to reduce operating costs, review fees for full cost recovery, identify inefficient programs, and consider ad valorem tax increases in FY 2028 if needed.
• Position Reclassification: Human Resources Director Theresa Smalling presented a reclassification of a vacant Mechanic position to a second Assistant Director of Public Works, budgeted at $143,300, to oversee operational units and Public Works Efficiency Study implementation. The position is funded across Fleet (20%), Stormwater (20%), General Fund/Streets (10%), Facilities (10%), and Solid Waste (40%).
• Commission Comments on the Millage Rate: Multiple commissioners praised the city’s ability to hold the millage rate constant since 2016. Vice Mayor Gow expressed support, noting stresses from inflation and the importance of maintaining reserves. Commissioner Dugard supported the rate after learning about rollbacks and called the budget “miraculous.” Commissioners Walker and Sandbergen also supported the rate, with Sandbergen noting that higher tax bills can result from rising assessed values even when the millage rate is unchanged. Mayor Freaney said holding the millage rate was important, citing inflation, labor costs, and the firefighter contract.

Key Outcomes

• Resolution 25-22 was approved unanimously to establish a tentative FY 2026 millage rate of 4.1345 mills. The roll call vote was 5-0: Mayor Freaney and Commissioners Sandbergen, Walker, Dugard, and Gow all voted aye; no one voted nay.
• Resolution 25-23 was approved unanimously to establish the tentative FY 2026 operating and capital budget. The roll call vote was 5-0.
• Staff will publish the TRIM Notice of Proposed Tax Increase and Budget Summary Advertisement within 15 days.
• The second and final public hearing to adopt the final millage rate and FY 2026 budget will be held Tuesday, September 23, 2025, at 6:00 p.m. in the City Commission Chambers at Dunedin City Hall.
• Staff was directed to continue work on a multi-year plan to close the General Fund structural deficit and to improve future displays of FTE/VOD staffing data for public clarity.