City of Dunedin FY2027 Budget Workshop #2 - August 4, 2026

The Dunedin City Commission held the second of two budget workshops on August 4, 2026, from 9:10 a.m. to 2:45 p.m. at City Hall. The meeting focused on refining the FY2027 proposed budget, receiving the Board of Finance annual report, discussing health plan changes, and approving civic partner and aid-to-organizations funding. A contingency plan for potential property tax reform (Amendment 3) was also outlined. The workshop concluded with commission consensus direction on several items.

Public Comments & Testimony

• Charles Klein (on behalf of multiple organizations) expressed appreciation for the Commission's support of many valued community organizations.
• Numerous representatives of civic partner and aid-to-nonprofit organizations spoke in favor of funding. Speakers included: Lindsay Marshall (Dunedin High School Band Boosters), Kirsten Stiff-Walker (Progressive Arts Theater), Steve Beaty and George Ann Bissett (Dunedin History Museum), Kristina Garcia (Dunedin Cares), Tiffany Eaton (Dunedin Middle School Pipe Band), Joan McHale (Scottish American Society), Sarah McAdoo (Freeman Sound Family), Andrea Nalls (Dunedin Fine Art Center), a representative for Dunedin Youth Guild, Camille Hebting (NAMI Pinellas), and David Lomaka (Neighborly Care Network). All expressed gratitude for past and proposed funding and detailed the services provided to the community.

Discussion Items

• Follow-up Memo from Workshop #1 (Item 1.c): Finance Director Les Tyler reviewed 16 responses to prior Commission questions. Key updates included:
  • Storm expenses for Hurricanes Helene and Milton: $19.45 million total; $5.267 million received; $13.206 million anticipated; city match of $977,000 (reduced due to a $3 million state appropriation).
  • Potable water consumption decreased by 23.4 million gallons; reclaimed water consumption increased by 8.1 million gallons after rate increases. The shift was attributed to keeping Blue Jays and golf course on reclaimed water, not solely the rate increase.
  • Gas tax revenue projections will be adjusted downward by 2.2% due to declining consumption.
  • A rollback millage rate would lose $770,000 in FY27 revenue; combined with Amendment 3’s first-year impact of $4.755 million, the total could be larger.
  • Public Works efficiency savings (conservative) as of June 2026: $564,701.
• Board of Finance Annual Report (Item 1.d): Chair Catherine Harvey presented the Board's recommendations, including:
  • Delay the Highlander Aquatic Complex ($23.5 million) to 2029 and review scope to reduce cost.
  • Delay the $9.1 million downtown parking garage.
  • Reduce or delay parks and recreation capital projects (Fisher Little League lights, park pavilions, playground equipment, outdoor restrooms) totaling $770,000 in FY27 and $3.88 million over six years.
  • Support health plan changes (combined plan changes and premium increases) to reduce the increase from 16% to 12%, but urged preparing an RFP for the health plan administration and comparing network discounts.
  • Pass credit card transaction fees ($330,000/year) on to users, beginning with golf course.
  • Increase executive oversight of overtime ($1.5 million budgeted).
• General Fund Update (Item 1.e): Tyler noted adjustments from Workshop #1 increased the ending unassigned fund balance from 17.8% to 18.4% ($8,296,924). The five-year shortfall decreased to $5.35 million due to savings in personnel, operating, and transfers. The FY27 budget is balanced at the current millage rate of 4.1345 mills.
• Property Tax Reform / Contingency Plan (Item 1.f): Tyler explained that Amendment 3 (November 2026 ballot) would increase the homestead exemption to $150,000 in FY28 (costing $4 million) and to $250,000 in FY29 (costing $6 million), with total first-year impact of $4.755 million and $7.634 million in Year 2+. Staff is developing a $3 million contingency plan effective January 1, 2027. If Amendment 3 passes, full cuts will be implemented; if not, cuts occur via attrition with no layoffs. Mayor Freaney stressed the need to also communicate the additional $4.6 million cuts required in subsequent years.
• Risk Fund Update (Item 1.g): Tyler reported total expenses decreased by $386,000; property insurance premiums are 3% higher than FY26 actual. Reserve is $4.1 million (above $3.5 million target). Proposed to move sidewalk maintenance ($125,000/year) from gas tax fund to risk fund starting FY28.
• Health Fund Update (Item 1.h): Dr. Teresa Smalling and consultant Sean Gehring presented. The health cost increase was reduced from 15.6% to 12% through plan changes. Staff recommended Option #3 (flat dollar premium increase) with stop loss increase from $140,000 to $160,000, and increases to deductibles and out-of-pocket maximums. Commission consensus supported this option.
• Civic Partners and Aid to Non-Profits (Item 1.i): Tyler presented FY27 proposed funding totaling $222,000. Civic Partners: Dunedin Fine Arts Center $30,000, Dunedin History Museum $35,000, Dunedin Cares $37,000. Aid to organizations: $106,500 distributed among 30+ nonprofits. All applicants funded except Divine Coastal House of Healing (asked to reapply next year). A contingency plan reduces all grants by 50% if Amendment 3 passes. Commission expressed strong support for the organizations.

Key Outcomes

• Consensus direction accepted: Board of Finance report accepted; health plan changes (Option #3, stop loss to $160,000, plan design changes) approved; civic partner and aid-to-organizations funding approved as recommended, contingent on Amendment 3 passage (50% reduction if passed).
• Directives to staff:
  • Add gas tax decreases to the city’s legislative platform and research advocating for fee-for-use.
  • Provide a report on passing credit card fees to customers, starting with golf course, with a phased plan.
  • Report on conditions of downtown brick pavers.
  • Add Pinellas County to health plan benchmarking; provide data separately.
  • Include a question in the employee survey on preference for compensation vs. increased benefits.
  • Show public works efficiency savings net of software and consultant costs.
• Next steps: First public hearing on tentative millage rate and budget on September 3, 2026; second (final) hearing on September 17, 2026. A draft contingency plan will be presented in early September, with formal budget amendment in November/December.
• Votes and tallies: All decisions were reached by consensus; no formal votes were recorded.