The general fund is projecting $77.2 million in revenues — including $25.5 million in residential and commercial property taxes — with $77.2 million in expenditures.

Property taxes (or ad valorem taxes) are the largest contributor to the general fund, generating 35 percent of its revenues. The city anticipates pulling in an additional $1.2 million in property taxes over last year, according to its proposed budget report.

The FY26 budget is the city’s first since Craig Shadrix took the helm officially as city manager. He laid out his “Plan, Fund, Execute, Assess” approach in the online budget proposal, stating, “This framework reflects our commitment to responsible governance and positions us for thoughtful, sustainable growth.

“First, we Plan strategically, aligning our goals with long-term priorities and assess outcomes. We identify what needs to be done, when, and why, making sure our goals clearly align with the priorities of the City Commission and community.

“Next, we Fund responsibly, allocating resources where they will have the greatest impact. Every dollar is tied to a clear objective, and funding decisions are made transparently to reflect both current and future needs. Then, we Execute with discipline and hold ourselves accountable by tracking progress and Assessing results.”

Elsewhere in the budget proposal, Shadrix explained the city took a zero-based budgeting approach to trimming operating costs through a “department-by-department review of expenditure line items … to ensure all costs are justified from the group up.”

During Wednesday's budget hearing presentation, Vanna Lawitzke, assistant finance director, emphasized the city’s priorities are investing in public safety, upgrading city infrastructure and improving residents’ quality of life. Funding for capital projects has been cut by 15 percent to focus on “critical needs.”

Skyrocketing protective services costs

Nearly half — 47 percent — of the general fund is earmarked for protective services expenditures at $39.9 million. The police department’s budget ($24.8 million) dwarfs the fire department’s ($14.8 million), even with the new fire assessment, which is anticipated to bring in $2 million in revenue.

For FY26, the police department budget includes $931,000 to replace patrol vehicles and radios while the fire department will invest $950,000 in a new fire engine. Assistant City Manager Mike Rumer told VoxPopuli that the city was able to find a “good quality truck” that isn’t as pricey as the $1.3 million fire engine they’d originally considered.

The fire department will also receive much-needed air-supply packs ($313,357), 60 radios ($80,000) and three additional firefighters added to the battalion. At this time, the fire department has chosen not to adopt the a 24 hours on/72 hours off model. Fire Chief Tom Smothers has said this model would require an additional 21 fire fighters to maintain service.

Shadrix bluntly addressed rising costs for police and fire departments, warning in his budget message about the “wage and equipment crises looming over public safety.” He pointed to skyrocketing equipment expenses and Orlando and Orange County’s pushing police and firefighter salaries to “historic highs” as the main causes of the crises. He added that current millage rates alone would be unable to “absorb” escalating expenses without new sources of revenue or a “shift in state or local funding mechanisms.”

Beyond the police and fire departments, the city allocated a total of $46 million for personnel costs, an increase of 9.6 percent over FY25. This reflects a 3.5 percent cost of living increase for non-union employees and $1.3 million for 12 additional staff positions, including the three firefighters.

The city also increased its health insurance budget by 10 percent over last year’s $8.6 million, owing to more claims being paid and more employees opting for family coverage.

Another $11.6 million is earmarked for public works, including additional monies to spruce up the city’s Christmas holiday decor, resurface roads, fix sidewalks and keep the city’s right of ways manicured.

Rumer told VoxPopuli that sidewalks and mowing right of ways are the “biggest complaint we get.”

The city upped the budget to $709,000 to address it. Rumer said this will cover two additional staff positions along with new equipment.

“A new truck, new trailer, new replacement mowers,” Rumer said. “It’s showing the emphasis we’re putting on mowing.”