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Updated 4:24 p.m.
It's budget season, and Thursday Winter Garden proposed a new millage rate of 4.85 mils during its budget workshop.
That’s an 8 percent increase from the city’s current 4.5 mils. That rate would add 35 cents for every $1,000 of assessed property value. That’s an additional $53 per year on a $200,000 home with a homestead exemption, according to Laura Zielonka, the finance director who walked commissioners through the budget plans during the city commission meeting.
The increase is estimated to generate $30.1 million in revenue and close a $2.2 million budget deficit. That deficit is what remains after the city trimmed $4 million from the 2025-2026 budget following residents vehement rejection of the city’s earlier plan to levy a fire fee to help fund the Fire and Rescue Department budget. The new fiscal year starts Oct. 1.
Zielonka explained that the tax increase would fund “ongoing services with ongoing revenues” and address “the challenge of operating expenses outpacing recurring revenues” and hold funds in reserve for emergencies, like hurricane cleanup.
She said that while property taxes were once enough to pay the city’s operating expenses, in 2024, the costs to provide services, largely attributed to inflation and state-mandated minimum-wage increases, began exceeding the revenues to support them.
“While revenues have grown, they’re not keeping pace with the cost of maintaining and enhancing city services,” Zielonka said. She described the situation as a “critical shift in financial sustainability.”
The rate increase would be the city’s first in eight years if passed. Budget hearings are set for Sept. 11 and Sept. 25 at 6:30 p.m. in the Commission Chambers at City Hall at 300 W. Plant St.
The city’s total budget is $180 million with projected revenues of $169 million. Ad valorem or property taxes make up 18 percent of the city’s total revenues and 43 percent of the city’s general fund. The city's essential services, such as police and fire, parks and recreation, roads and sidewalks, events and government administration are financed through the general fund.
“The general fund is the backbone of the city,” said Zielonka.
For the first time, the city used a zero-based budgeting approach to draft the 2025-2026 budget. City Manager Jon Williams explained that was different from the traditional budgeting method because it doesn’t rely on last year’s numbers, modifying as needed. Instead, he explained, “We zero out all of the requests and then we place a priority on the requests for expenditures and evaluate them based on that priority.”
Zielonka said the 2025-2026 budget prioritized long-term fiscal sustainability, essential services, public safety, infrastructure and road surfacing, technology upgrades and maintaining emergency reserves.
Going into 2026, the general fund has projected revenues of $70.3 million with $68 million in anticipated expenses. These include a 7.5 percent salary increase for fire fighters per their collective bargaining agreement as well as a 3 percent cost of living increase for non-fire union employees and increases to the city’s contributions to health insurance and pensions.
Here’s how the main budget categories break down:
Public safety: $38,564,090
General government: $9,707,085
Culture and recreation: $6,064,738
Physical environment: $4,540,731
Roads, sidewalks, traffic control: $3,175,057
Debt service: $2,557,973
Economic environment: $1,728,127
Transfers to CRA: $1,824,324
CORRECTION: A previous version of this story misstated the proposed millage rate increase. The proposed increase is 8 percent higher than the current rate of 4.5 mils.
