SUBJECT/RECOMMENDATION:
Title
Approve the City of Clearwater Annual Operating Budget for the 2026/27 fiscal year and pass Ordinance 9937-26 on first reading.
Body
SUMMARY:
In accordance with Chapter 200 of the Florida Statutes and the rules governing Truth in Millage (TRIM) compliance, the City Council must hold two public hearings to adopt the budget. The adoption of this ordinance and the related ordinances adopting the 20206/27 millage rate and the Capital Improvement Budget are an integral part of fulfilling these requirements.
On June 30, 2026, the City Manager provided the City Council with a Preliminary Annual Operating and Capital Improvement Budget that outlined estimates of revenues and expenditures for the 2026/27 fiscal year. The City Manager presented the preliminary budget at the City Council meeting on July 16, 2026, for Council discussion and citizen input. Staff hosted a public engagement workshop, Dollars to Donuts, at the Morningside Recreation Center on August 1, 2026. And a Special Budget Work Session was held on August 11, 2026, for Council discussion of the proposed budget.
The following changes have been made to the preliminary operating budget and are included in the ordinance for adoption of the fiscal year 2026/27 operating budget.
In the General Fund:
• Ad valorem revenues decreased by $103,525 to account for the reduced millage rate approved by Council in July (rolled-back rate of 5.8773 mills).
• An increase of $1,405 to transfer-in revenue to align with the final CRA budget transfer for administration costs.
• Non-Departmental expenditures are reduced by $2,120 for the transfer of TIF to the CRA to account for the reduced millage rate and updated values reflected in the preliminary tax roll.
• In the Police Department, there was a decrease of $100,000 in transfers to the capital fund.
STRATEGIC PRIORITY:
The budgeting process aligns resource allocation to the advancement of our community in all five strategic priorities: high performing government, economic and housing opportunity, community well-being, environmental stewardship, and superior public service.
