Summary

Council accepts clean FY2025 audit, adopts FY27 budget calendar, advances Holiday Isle conservation rezoning

DestinMar 2, 20264 min read

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At the March 2, 2026 regular meeting, Destin City Council accepted the FY2025 annual audit (unmodified opinion), adopted the FY27 budget calendar, approved a budget amendment to address Trustmark loan arbitrage compliance, and took multiple personnel and contract actions. The council moved the issue of rezoning a state-owned Holiday Isle parcel to Conservation onto the next agenda and deferred a proposed request to lease the state property pending more information. Council also directed staff to return with alternatives to installing a solid fence along the Crosstown Connector and confirmed the hire of Tina Deater as Community Development Director. Proclamations included American Red Cross Month and Flood Awareness Week.

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Community Development Land Development Pursue Rezoning

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City Council

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Key decisions

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Approved the meeting agenda (7-0).
Proclaimed March 2026 as American Red Cross Month and March 9–15, 2026 as Flood Awareness Week.
Accepted the FY2025 Annual Audit and Financial Statements (unmodified/clean opinion) and noted auditor comments about potential long-term impacts if property tax revenue declines.
Adopted Resolution 26-03 designating 2026 as the City's "America 250" celebration year and supporting the Okaloosa County America 250 Commission.
Added the matter of rezoning the state-owned Holiday Isle parcel to Conservation to the next council meeting agenda (motion passed 7-0).
Deferred (substitute motion passed 5-2) directing the City Manager to request a state lease for the newly acquired state property on Holiday Isle, pending further information about county and state positions.
Confirmed the City Manager's recommendation to hire Tina Deater as Community Development Director (7-0).
Accepted an updated engagement letter for Special Counsel Schef Wright, including a requested hourly rate adjustment (motion passed 7-0).
Adopted the FY27 Budget Calendar (7-0).
Adopted a budget amendment related to Trustmark loan arbitrage compliance to avoid potential IRS repayment (motion passed 7-0).
Directed staff to return with additional options (including landscaping and noise/traffic solutions) instead of proceeding immediately with up to $225,000 in solid fencing along the Crosstown Connector; delayed immediate fencing action (motion passed 7-0).
Reviewed staff pay adjustment scenarios (1%, 2%, 3%) as informational only; no compensation action taken at this meeting.

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