City Budget Workshop Details 2026 Plans, Fire Service Fee Increase

The City of Tallahassee will hold a budget workshop on Wednesday, April 16 in City Hall. Budget workshops are held each quarter to provide the status of the current budget compared to actual results and to provide the budget plan for the upcoming year.

Based on staff analysis of key metrics and first-quarter results for revenues and expenditures, 13 operating funds are within budget expectations. In the Fire Fund, several developments have resulted in the need for an early review of the Fire Service Assessments and Fees. This review has already begun, and the recommendations will be presented as part of the FY26 budget development process.

The workshop documents state that a Fire Service Fund review will result in a 20-25% increase in the fire service fees.

Provided below are the FY2026 budget assumptions:

–No change in the 4.42 millage rate

–Employee raises – 4% for general employees and raises for Police and Fire per collective bargaining agreements.

–Fire Personnel – 50 new positions: 24 FTE’s for new Fire Station 17 and expansion at Station 15 and 26 FTE’s to improve the Insurance Services Office rating

–Fire Services Fee Study: 20-25% estimated increase, IAFF agreement, ISO rating, Station construction costs, bad debt increase.

–Police – Prevention of Violent Crime: 20 new Officers per Strategic Plan goal of 5% increase for five years. Continue Wrap-around Services:  TEMPO, TFLA, RTCC, TEAM.

–Parks and Recreation Personnel – 12 FTEs. Six for the new Senior Center and six for maintenance of 100 parks.

–CHSP – Second-year funding per Citizen Review teams of $2.9 million.

Cost Recovery – updated fee schedules for Cemetery and other user fees.

According to the staff update, the development of the FY26 Budget for the 14 operating funds will incorporate the citywide assumptions listed above. Utility funds, which generate revenues based on the sale of services, will be balanced based on CPI increases to rates.

The preliminary projected deficit for the FY26 General Fund budget is between $3.5 to $5 million. The projected deficit reflects increases in healthcare costs, inflationary pressures, recent state legislation, and projected revenue estimates.

The city staff notes that based on the fiscal impact of efficiencies by departments and legislative changes, a balanced budget will be presented at the June workshop.

In addition, revenues will be reviewed as updated state estimates for revenue sharing and preliminary property value estimates for ad valorem revenues become available in June and July.