Gulfport City Council Budget Workshop – August 6, 2026

The Gulfport City Council held a workshop on August 6, 2026, to review the City Manager's proposed budget for Fiscal Year 2026/2027. City Manager James E. O'Reilly presented a balanced, zero-growth general fund budget of $21.8 million—$25,000 less than the current year—citing economic uncertainty from proposed Amendment 3 and cooling property value growth (1.17% vs. 3.91% last year). Property tax revenue is projected at $7,015,525, accounting for 32.24% of general fund revenue. The millage rate is set at 4.0258 (the "trim" rate). Reserves are maintained at 22% ($4.7–$4.8 million). The budget includes discretionary spending cuts of $340,000, reduced personnel through attrition, and a 4.5% COLA for employees. Capital improvements, stormwater projects, and ongoing recovery from hurricane damage were also discussed. Council members and the public debated priorities, revenue enhancements, and potential cuts.

Public Comments & Testimony

• Karen Schwartz supported reducing trash collection to once a week and implementing a "pay-as-you-throw" system. She advocated for higher marina fees for non-residents, rental inspection licenses, and reducing building air conditioning. She also noted the elimination of the Duke Solar line item.
• John Goday requested a public restroom at Clam Bayou, suggesting a solar-powered, locking design. He emphasized the need for basic amenities to make the park accessible to all residents.
• April questioned the reduction in tree budget and asked about tree fund status. She inquired about the filled status of a leisure services director position, code enforcement staffing, and the assistant director of public works. She noted no travel fund for council and requested data on prior tree spending.
• Barry Reinhardt (President, Circle of Friends for the Public Library) spoke in strong support of the library as an essential service, urging protection of funding.
• Lonnie raised concerns that condominiums and apartment buildings generate more trash than single-family homes, cautioning against a one-size-fits-all reduction in trash pickup.
• Jennifer Yellen suggested alternative fundraising: selling unneeded city assets (e.g., old police cars, land), theme-based 5K races, engraved pavers for Veterans Park, grants, and crowdfunding. She offered to donate the difference from any tax reduction.
• Lenny Gukenheimer questioned the necessity of the full-time assistant city manager position (Dave Mather) and noted the New Horizon Concert Band uses the senior center for rehearsals; he offered to discuss alternative fees or locations.

Discussion Items

• City Manager's Budget Presentation: O'Reilly presented a zero-growth budget focused on Amendment 3 uncertainty, with reduced personnel via attrition, frozen hiring except for a planner position, and a 4.5% COLA. He highlighted four utility projects funded by state/federal sources (with one pending) and ongoing storm recovery (Casino dock and South Basin demolition).
• Council Member Positions:
  • Vice Mayor Shaw prioritized reserves at 22%, senior center improvements, and stormwater improvements. She proposed a placeholder for a pilot homeowner incentive/rebate program for stormwater permeability.
  • Council Member Webb analyzed revenue equity: 51% of Gulfport households are one paycheck from economic distress; 3,000+ households meet state poverty definition. She suggested a fire assessment fee to include tax-exempt entities, reducing the millage rate; bringing marina slip rentals to market rates (currently the cheapest in the county); reducing the planned 8% utility fee increase to 5% offset by other revenues; and keeping the 4.5% COLA in line with the 3.2% local CPI. She also urged leveraging Penny for Pinellas dollars to attract state/federal grants for stormwater.
  • Council Member Early supported stormwater as #1 priority, willing to use reserves for matching funds. She advocated setting aside $500,000 from WRD for senior center improvements rather than mooring field expansion. She proposed reducing trash to once a week (using staff for storm drain clearing and sidewalk easement clearing), a discount for permeable yards, volunteerism at events to cut paid overtime, reviewing the looper (suggesting a simplified route), and eliminating e‑comments due to low usage. She questioned extended senior center hours (low evening use) and suggested scaling them back.
  • Council Member Donch strongly supported the 4.5% COLA for city employees, arguing recent insurance increases eroded wages. She opposed salary cuts and suggested cutting a $16,000 short-term rental software program in favor of existing systems. She advocated higher marina fees and a fire assessment. She also recommended Portland Loo prefab bathrooms for Clam Bayou.
• Operational Questions: Council sought clarifications on OPEB (retiree health benefits – the city does not pay retirees’ health insurance), IT security cameras, and part-time wage classifications.

Key Outcomes

• Consensus on Priorities: Council agreed to prioritize stormwater improvements and senior center funding. A majority supported redirecting $500,000 from the WRD fund (previously earmarked for mooring field expansion) to a dedicated senior center account.
• Fire Assessment Feasibility: City Manager will research and bring back information on implementing a city-wide fire assessment fee to include tax-exempt properties, potentially allowing a millage rate reduction.
• Marina Fee Study: Council expressed interest in adjusting marina slip rentals to market rates for non-residents to increase revenue, possibly offsetting planned utility fee increases.
• Senior Center Hours: Consensus to scale back extended evening hours; staff will consider half-day Saturday openings as an alternative.
• No Interest in Privatizing Sanitation: Council rejected privatizing trash collection, emphasizing community value of city staff.
• Further Study Items: City Manager will bring data on potential savings from once‑a‑week trash collection, looper utilization, and museum/art center funding models. A dedicated stormwater funding mechanisms workshop is scheduled for the first council meeting in October (September 3 next meeting due to elections).
• Next Meeting: Council will not meet again until September 3, 2026 (a Thursday).