St. Pete Beach City Commission FY 2027 Preliminary Budget Work Session

On Tuesday, August 25, 2026, at 4:30 p.m., the St. Pete Beach City Commission convened a budget work session in the Commission Chambers at 155 Corey Avenue. Finance Director Devin Schmidt presented the FY 2027 preliminary operating budget, covering financial policies, revenues, personnel, department-by-department comparisons, all funds, capital projects, and public engagement. The session lasted about one hour and 45 minutes; no formal votes were taken.

Budget Presentation & Commission Discussion

• Financial policies: Florida requires a balanced budget; the presented budget is balanced. The city maintains a 25% unassigned fund balance (about three months of operations), a 10% hurricane contingency for declared emergencies, and directs one-time funds above reserves to capital projects. Capital assets are defined as items costing $5,000 or more or lasting longer than one year; the multi-year capital program uses a $20,000 threshold.
• Revenues: Total FY 2027 budget sources are $85.2 million, with the general fund, capital fund, and four enterprise funds accounting for 89% of city revenue. The ad valorem millage rate remains flat at 3.0913 mills since FY 2024, when the commission reduced it from 3.15 mills—the first reduction in nine years. About 70% of the tax base is non-homesteaded; Director Schmidt said that if Amendment 3 passes, the city would face a $1.1 million gap in the first year and growing gaps afterward.
• FEMA and disaster recovery: The city has 86 active FEMA projects with $9.1 million in obligated federal shares and about $5.9 million still outstanding, largely Category B. Commissioner Causey asked for a timeline of FEMA receipts and county/state/federal hurricane recovery funding; Schmidt committed to providing a follow-up. The City Manager explained that the county and state fronted money during Hurricanes Helene and Milton, but next hurricane season the city will have to pay upfront for on-ground assessments and seek FEMA reimbursement. A $200 million county community grant program for recovery has not yet been launched.
• Personnel: The FY 2027 budget includes no new positions. It authorizes 159.6 FTE positions: 124.25 in the general fund, 16 in building, 17.10 in enterprise funds, and 2.25 in fleet. Assumptions include a 3.5% benefits increase, 3.2% cost-of-living adjustment, 1.5% merit increase, and worst-case 10% increases for workers’ compensation and property insurance. Schmidt noted the FY 2026 library services budget was understated because of a system implementation error; a September budget amendment will correct it.
• Departmental changes: The city commission budget decreased because the recommended commission raise was not placed on the ballot. The city attorney budget increased, including $25,000 for specialty outside counsel. IT absorbed the iWork program from the building fund with administrative service fees. HR funding increased to support a professional HR team and new HRIS system. Fire/EMS includes a wage reopener increase and two county-reimbursed vehicles. Resident services is returning to pre-hurricane service levels, including the gym coming back online.
• Fund summaries: The general fund projects $32.7 million in revenues, $33.4 million in expenditures, and a $9 million ending fund balance. The building fund projects $1.7 million in revenue, $2.5 million in expenditures, and a $2.9 million ending balance while drawing down to statutory levels. The resiliency fund shows $364,000 in revenue, about $5 million in expenditures, and a $4.3 million ending balance, driven by reappropriated capital projects. The multimodal fund is holding about $1.1 million in parks and transportation impact fees for a future project. The fleet fund projects $800,000 in revenue and about $1.3 million in programmed spending. The stormwater fund projects $4.6 million in expenditures—$3.1 million capital, $863,000 operating, and $348,000 personnel—with 4.55 FTE. The parking fund projects $8.8 million in revenue, $8.6 million in expenditures, and a $6.7 million ending balance, and includes the freebee service, PSTA contract, and $300,000 for a license plate recognition system. Wastewater rates now include future capital costs; the reclaimed water study did not address individual property metering.
• Capital program: The capital program across eight funds is now about $61.8 million, down from the $64 million shown in earlier budget road shows. Most projects already underway will not be complete by September 30 and will be reappropriated into FY 2027.
• Commissioner questions: Commissioner Maldonado asked about audits; Schmidt said the city received no findings in the state’s DOGE-style review, and the Finance Budget Review Committee will meet September 2 to review eight audit proposals before recommending a firm on September 21. Commissioner Robinson questioned the lack of operational cuts, said she would be willing to give up commission salaries but noted a charter referendum would be required, asked when stormwater assessments first placed on tax bills would expire, and noted a 150% variable and 70% fixed assessment increase in 2022. Staff committed to research loan documentation and to consider retitling assessments with expiration dates. Commissioner Robinson also asked about higher-yield investments; Schmidt said the city has moved funds from CDs to Florida Safe and is reviewing its investment policy. Commissioner Marion asked to separate actual expenditures from interfund transfers in future reports, requested projections of reduced general fund subsidies as enterprise funds become self-sustaining, and asked about staff turnover; HR Director Jody Costello said there are currently six vacancies out of 159.6 FTE.

Key Outcomes

• No formal votes or resolutions were adopted; the session was informational.
• Staff will provide follow-ups on: FEMA reimbursement history and projected receipts; the $200 million county recovery grant program timeline; stormwater assessment loan details and expiration dates; possible retitling of assessments on tax bills; investment policy review; five-year projections of enterprise fund fee impacts and reduced general fund transfers; annual staff turnover data; and clearer reporting of transfers versus actual spending.
• A September budget amendment will correct the FY 2026 library services understatement caused by the system implementation error.
• Upcoming dates: final budget road show on August 26 at 5:30 p.m. at the District 2 library; public survey closes September 3 at midnight; millage adoption and first budget reading on September 9; final budget reading on September 21; Finance Budget Review Committee audit selection meeting on September 2.