Jacksonville council adopts FY27 budget, sets 63-cent tax rate

Council members voted by voice to approve the city's fiscal year 2027 budget ordinance and set an ad valorem tax rate of $0.63 per $100 valuation. Mr. Ray told the council a state law enacted since the county's revaluation requires the city to use the valuation effective in FY26, so most property owners' tax bills would be similar to the current year but computed with a 63-cent rate.

The budget package includes an updated capital projects plan, a proposed 1% increase to water and sewer rates and approximately $3.5 million of general fund balance appropriation, Mr. Ray said. He also described two major reallocation moves: shifting the standard 4-cent allocation from the general fund into a capital reserve and a proposed $1.6 million allocation for the Uptown Jacksonville project.

Supporters said the adopted tax rate funds a multi-year pay plan that council has been implementing since 2022 to close recruitment and retention gaps. Mr. Ray said the changes are intended to place most positions near market median pay and that the package contains no net new headcount beyond FY26; the budget shows 631 full-time positions, 158 part-time and six part-time positions with benefits.

Council discussed process and timing: staff explained the council may adopt the budget ordinance tonight and bring a budget amendment at the July meeting to remove or reallocate funding for specific positions if council so chooses; staff emphasized that any hiring would not take place until council takes further action. The motion to adopt the budget passed by voice vote; no roll-call tally was recorded in the transcript.

What happens next: staff will prepare the July budget amendment and the council will revisit funding for the staff attorney, downtown coordinator and engineering project manager during a workshop or the next meeting.