SUBJECT/RECOMMENDATION:
Title
Approve the City of Clearwater Annual Operating Budget for the 2025/26 fiscal year and pass Ordinance 9849-25 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 2025/26 millage rate and the Capital Improvement Budget are an integral part of fulfilling these requirements.
On June 30, 2025, 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 2025/26 fiscal year. The City Manager presented the preliminary budget at the City Council meeting on July 10, 2025, for Council discussion and citizen input. In addition, a Special Budget Work Session was held on August 6, 2025, 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 2025/26 operating budget.
In the General Fund:
• Ad valorem revenues are increased to account for the change in values reflected in the preliminary tax roll.
• Intergovernmental revenues are increased to reflect the Florida Department of Revenue’s final projection for state revenue sharing.
• Fine revenues for red light camera fines are increased based on actual receipts.
• Miscellaneous and transfer-in revenues are adjusted (net zero) to account for revenues in the correct categories (transfer between funds).
• Non-Departmental expenditures are reduced for the transfer of TIF to the CRA to account for the change in values reflected in the preliminary tax roll.
• Expenditures are increased in the Police Department to correct for a calculation error in salaries.
In the Parking Fund:
• Expenditures are increased to correct the transfer out of Parking Enforcement fines to balance the transfer to the General Fund.
In the Special Development Fund:
• Revenues are increased for Parks and Recreation Impact Fees and an allocation of prior year Recreation Facility Impact Fees to provide project funding budgeted in the Capital Improvement Program.
• Offsetting expenditures are increased to transfer impact fee revenue to provide funding for the Countryside Pickleball project as budgeted in the Capital Improvement Plan.
A worksheet detailing these changes made to the final budget for fiscal year 2025/26 is attached.
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.
