FY2026 Final Millage Rate and Budget Adoption - September 23, 2025
FY2026 Final Millage Rate and Budget Adoption - September 23, 2025
This special meeting of the Dunedin City Commission, held on September 23, 2025, from 6:00 PM to 6:26 PM, concluded the budget process with the adoption of the final millage rate and operating and capital budget for Fiscal Year 2026 (beginning October 1, 2025). The meeting followed nine months of preparation including workshops, Board of Finance review, and a first public hearing on September 11, 2025. Both resolutions passed unanimously.
Public Comments & Testimony
- Rau Clifford (464 Paula Drive N.) asked about the proposed tax levy of $19,985,162 published in the newspaper and why it did not directly match the budget figure. Staff explained that the published figure represents 100% of the estimated tax levy, while the city budgets at a 95% collection rate (per state law) to account for delinquencies. They further clarified that the budget also includes approximately $1 million from the Community Redevelopment Agency (CRA) from the county's portion, which is not reflected in the city-only ad valorem number.
Discussion Items
- Resolution 25-24 (Final Millage Rate 4.1345 mills): Finance Director Les Tyler presented: the rate of 4.1345 mills is 5.43% above the rollback rate of 3.9216 mills and has remained unchanged for 11 years. It will generate $17,850,000 in general fund revenue (at 95% collection) and $1,135,000 for the CRA TIF. Commissioners commented on the stability of the millage rate, the importance of maintaining a 15% reserve, and the challenges of inflation, infrastructure needs, and storm recovery. Mayor Freaney noted the rate supports “slow, steady, stable” finances.
- Resolution 25-25 (Final Operating & Capital Budget $156,210,946): Tyler confirmed no changes from the tentative budget adopted September 11, 2025. Commissioner Dugard inquired about the Highlander Tennis Courts project budget decrease of $550,000 – staff clarified the project was budgeted in FY25, bids came in high, and it will be rebid and rolled into FY26. Vice Mayor Gow and Commissioner Dugard praised the separation of operating and capital budgets for better transparency. Mayor Freaney emphasized that 60% of the budget is labor and that the city must remain competitive to retain staff.
Key Outcomes
- Adopted Resolution 25-24 (Final Millage Rate 4.1345 mills) – Motion by Commissioner Sandbergen, seconded by Commissioner Walker. Vote: 5–0.
- Adopted Resolution 25-25 (FY2026 Final Operating and Capital Budget $156,210,946) – Motion by Commissioner Walker, seconded by Commissioner Dugard. Vote: 5–0.
- Staff noted the Highlander Tennis Courts project will be rebid and completed in FY2026.
- City Manager Bramley announced the first meeting to discuss future budgets will be October 3, 2025.
Meeting Transcript
Good evening and welcome to the September 23rd, 2025 special meeting. I'd like to call the special meeting to order, and we'll start with the Pledge of Allegiance by our city attorney. Jen. I pledge the allegiance to the flag of the United States of America. And to the Republic for which it stands. One nation under God is all with liberty and justice for all. Okay, I'll just start with is anyone in the audience wish to speak on an item that is not on the agenda tonight. Seeing no one, uh, we'll close that uh citizen input and go to new business. Uh this is adoption of fiscal year 2026 final millage rate and fiscal year 2026 final budget. The first one is resolution 25-24, which establishes the fiscal year 2026 final millage rate. Jen, can you please read resolution 25-24 by title only? Resolution 25-24, resolution of the city commission of the city of Dunedin, Florida, adopting the final millage rate for ad velorum tax revenue for fiscal year 2025-26 at a rate of 4.1345 mills or $4.13 per thousand dollars of assessed property value and providing for an effective date. That was resolution 25-24, read by title only. So moved. Second. Okay, and I'll go to staff presentation. And we'll start with uh city manager. Do you have some comments? Yes, I do. Thank you. And good evening, Mayor, Vice Mayor, and Commissioners. Uh this is a special meeting, as the mayor said, of the city commission in regards to the fiscal year 2026 budget. The um uh I just want to make a couple comments about the process because this evening is usually relatively uh short meeting, and a lot of work has gone into this budget. Uh this is the culmination of about nine months' worth of work at a minimum, uh, beginning first of all with staff uh reviewing line item budgets and making proposals to the city manager's office, uh, and then some back and forth with staff between the city management's office and finance department and staff. Uh then we put together a draft budget uh and we submit that to the city commission, and that was done in June and to the public as well. So there have been a number of workshops regarding the budget, and those are day-long workshops, those are eight-hour long workshops. Um the um and and that's this is all predicated upon the work that was done by the by the uh Board of Finance as well. The Board of Finance saw the budget several times. They heard from several uh department directors regarding the budget and some of the some of the items within the budget, and they make their recommendations to the city commission, which they did in I think it was August, the August meeting. Yeah. So and that was that first budget uh workshop, and that was August. Um the first budget workshop was uh July 18th of 2025. There was a uh substantial follow-up, as you recall, in regards to all of your questions and comments in the follow-up letter, and that is of record in the uh the city commission's um uh on the excuse me, the city's website. Um we uh convened again for a second budget workshop on the 6th of August of 2025. Again, there was a uh to address the follow-up. Uh there are additional questions of the city commission. We saw aid to organizations. Uh we saw you looked at the pay plan and supported it in terms of merit-based increases to the to the to the employees. You looked at the proposals for some reclasses and so on and so forth and supported those as well. There was a follow-up to that one and uh as well, and uh uh we provided that in our um our package for you. Um you had your first public hearing on the budget, and that was uh December, excuse me, September 11th of 2025, and then this evening is the second public hearing and adoption of the fiscal year 2026 budget. As I said, in the evening period, a lot of uh work has gone into this budget. Um it is uh uh submitted to you as a proposed tentative budget for fiscal year 2026. And uh I know that Les has a very short presentation for you this evening. Thank you, Mayor. Okay, we'll turn to Les. Good evening, Mayor, Vice Mayor, Commissioners. Les Totter, the Finance Director, and I'm here with Gene, our budget manager. Uh the fiscal year 26 budget has been prepared in unity with our priorities set forth in our City of Dunedin Strategic Plan. This is a final hearing on the 26th budget.
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