The City Commission is expected to consider setting a proposed property tax rate of 5.1876 mills for fiscal year 2026-27 after commissioners indicated during last week’s budget workshop that they favored a 0.75-mill increase rather than the 1-mill increase initially presented by staff. 

The special meeting begins at 5:15 p.m. on Wednesday in the commission chambers at City Hall. The agenda contains a single action item: approve and set the proposed fiscal year 2026-27 millage rate. Finance Director Blanche Sherman will present the staff report.  

The proposed operating millage rate of 5.1876 mills is a 0.75-mill increase over the city’s current rate of 4.4376 mills. The proposal also calls for setting the rolled-back rate at 4.2510 mills and scheduling the tentative budget hearing for 5:15 p.m. Thursday, Sept. 3, at City Hall.  

The staff report states that the city’s preliminary general fund is projected to generate approximately $104.5 million in revenue, while operating and capital needs total about $121.1 million. To balance the preliminary budget, the city plans to use approximately $16.7 million in assigned operating and capital reserves, although staff noted that state revenue estimates have not been finalized and revenue and expenditure projections continue to be reviewed.  

The preliminary budget also assumes a total city budget of approximately $287.3 million across all funds. 

According to the staff report, the proposed 5.1876-mill rate is 22.03% higher than the rolled-back rate and is projected to generate approximately $45.7 million in property tax revenue during the upcoming fiscal year. Staff estimates the rate would increase property tax revenue by approximately $11.1 million, or 31.9%, compared with the current fiscal year.  

Under the state’s Truth in Millage (TRIM) requirements, the city must notify the Orange County Property Appraiser of its proposed millage rate, the rolled-back rate and the date, time and place of its tentative budget hearing. After the proposed millage rate is set, it may later be reduced during the budget process but cannot be increased without additional notice requirements. 

The City Commission previously discussed the proposed increase during the July 8 budget workshop. Sherman initially presented a 1-mill increase, but after the commission reviewed the city’s preliminary spending plan, the commission expressed support for reducing the proposal to a 0.75-mill increase. The recommended 5.1876-mill rate reflects that direction.