Sebastian council sets trim notice at rollback after debate over reserves

Mayor Fred Jones opened a long budget discussion as staff presented the draft FY‑2027 budget and recommended a proposed millage of 3.4455.

Finance staff presented revenue and expense drivers, noting taxable assessed value rose 5.2% for the 2026 tax year but some sales‑tax streams are trending down. The city’s draft budget included planned pay increases, higher health insurance costs and funding for two new police officers; staff said using the rollback rate would require roughly $282,007 from reserves to balance operations.

Councilors debated whether to set the proposed 3.4455 millage or the rollback rate of 3.3339. Council member Nunn urged caution about cutting services, saying the city is “very lean” on staffing and that reductions could harm services. “We’re paying these taxes too,” Nunn said, noting the councilors are also taxpayers. Opponents of the higher rate voiced concern about drawing down reserves and the optics of raising taxes.

An initial motion to set the tentative millage at 3.4455 failed to reach the new 0.8‑majority threshold required under recent law. Council then approved a motion to set the trim notice at the rollback rate, 3.3339, and directed the city manager to use reserve funds as needed to balance the budget at that level; the motion passed 4–1 on roll call.

City finance staff told the council the most recent unrestricted fund balance is about $9.3 million and outlined several near‑term commitments and transfers. Staff also reminded the council that the trim notice can be lowered later if revenues or expense estimates improve.

The council scheduled two public hearings on the budget — Sept. 14 and Sept. 23 — as required before final adoption. The trim notice sets the advertised rate for property tax notices ahead of the final budget vote in September.