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

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An annual audit of the City's financial operations is required in order to maintain legal reporting compliance for various State and Federal agencies and to comply with certain bond covenants within the City's debt instruments. | attachments=2 | reports=1

The Florida Floodplain Manager's Association (FFMA) has declared the week of March 9th as Florida Flood Awareness Week. | attachments=1 | reports=1

(Note: Individual speakers will be limited to 3 minutes. At the discretion of the mayor, this 3 minute allowance may be adjusted depending on the level of business coming before the City Council)

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Announcements

WHEREAS, The President of the United States and the Governor of Florida have issued proclamations recognizing 2026 as the year we celebrate the Revolutionary War and the founding of the United State of America establishing our new Republic; and WHEREAS, the City of Destin, Florida wishes to join them and encourage our citizenry and visitors to celebrate as well, through attendance and participation in various special “once in a lifetime” activities and events conducted over the 2026 year; and WHEREAS, the City Council wishes to honor the men and women who fought for, and died to form our first government, military services; and gave their all standing up to tyranny, and taxation without representation and a lack of personal and religious freedoms that came with being a colony of Great Britain; and WHEREAS, the City Council desires to support the Okaloosa County America 250 Commission and the County’s plan to provide an America 250 grand parade in the county seat near the courthouse; memorial service honoring Revolutionary War patriot ancestors, a public gala event, educational programs in our schools, and other activities designed to educate young people about the history of the Revolution and the principles of our founding fathers who gave us our Constitution and bill or rights; and | attachments=1 | reports=1

During the Regular City Council ​meeting on February 17, 2026, ​Councilman Destin made ​the following motion which passed by Council: | reports=1

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Schef Wright practices extensively on matters involving utilities and energy law. With more than 39 years of experience working directly on energy issues in Florida, he currently specializes in representing consumers, consumer groups, renewable energy producers, independent power producers, and local governments with utility issues, including rates, power purchase contract negotiations and litigation, power plant siting and permitting, power line undergrounding, energy sustainability, and franchise negotiations. He has provided special counsel representation to the City of Destin in this regard since 2016. | attachments=3 | reports=1

The City's fiscal year is October 1 to September 30th. In accordance with the City Charter and State Statute, a budget must be adopted for the new fiscal year before September 30th. The budget requires two public hearings, which cannot take place on the same day/time as budget public hearings for Okaloosa County or the Okaloosa School Board. The first budget public hearing is advertised on the TRIM notices mailed to all property owners in August. The TRIM notice includes the tentative millage adopted by council resolution before August 4th. | attachments=1 | reports=1

On November 7, 2024, the City of Destin borrowed tax-exempt funds from Trustmark bank at a rate of 3.48%. These loan proceeds are subject to IRS code sections 141-150, which include arbitrage provisions. The IRS arbitrage rules include: 1) loan proceeds must be invested to result in a reasonable yield 2) the difference between the interest received MINUS the interest paid on the loan should be paid (rebated) to the IRS The current estimate is the the rebate to be paid to the IRS approximately $150,000. | attachments=2 | reports=1

The Crosstown Connector (CTC) Phase 2 project (RFB 25-17-CM) includes roadway, curb, sidewalk, drainage, lighting, signing, landscaping, and irrigation improvements. Along the corridor limits, several existing privacy fences are located adjacent to the new roadway. These fences (see attached photos) are: In varying states of repair Constructed of different materials (vinyl, wood panel, shadowbox) Different colors and construction styles Visually inconsistent As the Crosstown Connector becomes operational, these fence conditions will remain highly visible from the public right-of-way and may detract from the overall appearance and finished quality of the project. Staff is requesting Council direction on installation of approximately 2,500 linear feet of uniform 8-foot-tall vinyl (or similar composite) privacy fencing to “bookend” and unify the corridor. See the attachment depicting the placement of proposed fencing in green. | attachments=1 | reports=1

Councilmember Geile moved to direct staff to calculate and present to the council the total cost to the city of providing city employees with salary increases of 1%, 2%, and 3% for the council’s review. The motion was seconded by Councilmember Schmidt and passed 3-2, with Council members Destin and Bagby dissenting. | reports=1

On November 7, 2025, staff received an application for a Land Development Code (LDC) Text Amendment. The applicant, Webb Rouse of Perfect Cupp, LLC, is requesting to add the use of “Coffee and Tea Manufacturing” (NAIC 311920) to LDC Article 7, Table 7-2: Table of Allowable Uses as a permitted use within the Industrial (IN) zoning district . Please note that while this is an applicant-initiated text amendment, the amendment would modify the list of permitted, conditional and prohibited uses in the zoning district, and therefore approval of this Ordinance would be zoning-district wide. The applicant provided the following statement of intent with the application submittal: “Perfect Cupp, LLC is going to provide toll roasting and private labeling services to the coffee industry. It has been determined that coffee roasting and related coffee processing/packaging services are not called out specifically in the Destin land use record. Based on Perfect Cupp's strong desire to establish the business in our community we are submitting this request to add the land use (Currently understood as NAICS 311) to our existing facility with accommodations for expansion based on growth forecasts.” The City Council approved this proposed Ordinance on first reading on February 17, 2026. It is now before the City Council on second reading for consideration of adoption. | attachments=1 | reports=1

The City of Destin is authorized under Chapter 162, Florida Statues, to impose daily fines and liens on private property pursuant to the statutory process for code enforcement. The City Council additionally set forth a process in its City Code of Ordinances to process requests for reductions of these liens pursuant to objective criteria set forth in the City Code, as well as pursuant to a chart providing for maximum lien reduction percentages. On February 2, 2026, the City Council expressed that it has been overly constrained by the maximum lien reduction percentages set forth in the City Code of Ordinances, and directed Staff and the City Attorney to remove it from the Code of Ordinances, while maintaining all remaining portions of the Code relating to the lien reduction application process and criteria considered in evaluating a lien reduction application. | attachments=1 | reports=1

On February 2, 2026, the City Council requested an amendment to the Land Development Code that would allow indoor sports recreation establishments as a permitted use within the Industrial zoning district. Council further directed that staff also address potential parking requirements/reductions appropriately given the nature of the use and unoccupied portions of the square footage for batting cages and similar such unoccupied space within the indoor sports recreation complex. | attachments=1 | reports=1

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