Council adopts FY2026 tentative millage, tentative budget, and stormwater fee increase

As required by Florida statute, this item is to discuss the tentative millage rate and proposed budget, both to be approved by resolution. Under the Florida’s Truth in Millage (“TRIM”) statutes (ss. 200.065, 200.069, Florida Statutes), all property owners are notified of the tentative millage levies by Notice of Proposed Property Taxes (“TRIM Notice”), sent by mailing from the Volusia County Property Appraiser in August. The City Council may subsequently reduce the tentative millage rate. However, City Council cannot increase the tentative millage rate beyond what was included in the TRIM Notice without another public notification to all City property owners. The property appraiser used the maximum millage rate of 5.0000 voted on at the July 15, 2025 Council meeting. The current budgeted operating millage rate is 4.9750 per $1,000 assessed taxable value; the current year gross taxable value for operating purposes is $5,857,514,423 as certified by the Volusia County Property Appraiser. The Tentative Millage rate of 4.9750 mills is an increase of 4.10% over the rolled back rate of 4.7790 mills. The City Manager will start the discussion with comments on the increase in millage over rolled-back rate necessary to fund the budget, and the specific purposes for which ad valorem tax revenues are being increased. City Council will then have an opportunity to discuss the tentative millage rate and the proposed budget regarding the reasons for the increase in the tentative millage above the rolled back rate. Council will then hear comments and questions from the public. | attachments=1 | reports=1

Per Florida Statute Section 200.065, the City Council shall adopt a tentative millage rate prior to the adoption of a tentative budget and shall otherwise comply with the controlling provisions of the law. The Volusia County Property Appraiser has certified the gross taxable value of property for operating purposes within the City as $5,857,514,423 and certified a rolled-back rate of $4.7790 per $1,000 of taxable value for the City of Port Orange. The City Council deems it necessary to levy and does hereby levy a tentative tax of $4.9750 mills upon all real and personal property within the City for operational purposes. The operating levy of $4.9750 per $1,000 represents a 4.10% increase from the rolled-back rate of $4.7790 per $1,000 of taxable value. The tentative operating millage for Fiscal Year 2025-2026 would provide a tentative budget of $27,684,078 at 95% in ad valorem proceeds. The required millage for the 2006 General Obligation voter-approved debt service, which was refunded in 2016, is $0.1623 mills. The required voter debt service would be budgeted at $903,238 at 95%. | attachments=1 | reports=1

This is a request for the City Council to approve the tentative budget for Fiscal Year 2025 - 2026. Both the Eastport CRA and Town Center CRA approved their respective budgets during separate meetings on August 5, 2025, and submitted them to the City of Port Orange for inclusion in the City’s budget. The City Council of the City of Port Orange has complied with all requirements and procedures of Florida law in processing this resolution. The City Council pursuant to the Charter of the City of Port Orange and Chapter 166, Florida Statutes, does hereby adopt the tentative General Fund, Special Revenue Funds, Debt Service, Capital Improvement Funds (CIP), Enterprise Funds and other Internal Service Funds, in the amount of $223,696,012 and is attached to the Resolution as Exhibit "A". Florida Statutes, including Section 200.065, provide that the City Council shall adopt a Tentative Millage Rate prior to the adoption of a Tentative Budget and shall otherwise comply with the controlling provisions of Florida law. | attachments=2 | reports=1

Raftelis Financial Consultants, Inc. completed a stormwater rate study for the city in 2023 which recommended a 3-year tiered rate adjustment. In September 2023, Council approved Resolution No. 23-31 which authorized the first year update to the annual Stormwater Fees. Resolution No. 24-19 implemented year two, and this Resolution will implement year three, the final year, of the proposed changes based on the study and framework approved in 2023. The proposed fee increase of $15 per year brings the current $145 fee to $160 per equivalent dwelling unit/EDU (formerly known as a Single Family Unit or SFU). The 5-year Capital Improvement Program for stormwater projects is based on revenue projections from this fee structure. The City currently maintains 137 stormwater ponds, about 86,000 linear feet of canals and ditches and 518,000 linear feet of stormwater pipes. In addition, the City maintains more than 4,000 inlets in our stormwater conveyance system with 14 state-designated outfalls or discharges into the Halifax River. The City has on the horizon approximately $60 million in new stormwater infrastructure projects to continue ongoing efforts to improve and strengthen the drainage system of over 23,000 properties. The National Pollution Discharge Elimination System (NPDES) stormwater permitting program, as implemented by the Florida Department of Environmental Protection (FDEP), requires cities to enhance their stormwater management services and monitor and regulate stormwater runoff for pollutants to protect downstream water quality and habitat in our natural waterways. To finance these improvements and meet the necessary requirements, the City implemented a dedicated funding source in the form of a Stormwater Drainage Utility Fee (“Stormwater Fee”) in 1986. The Stormwater Fee is designed to generate revenues that are used to fund various stormwater management projects and initiatives. These projects may include constructing or upgrading stormwater infrastructure, implementing erosion control measures, creating new retention ponds, improving drainage systems, and conducting public education and outreach campaigns on stormwater best management practices. Chapter 74, Article V of the Code of Ordinances, City of Port Orange, Florida (the "Stormwater Utility Ordinance") establishes the City's stormwater drainage utility and authorizes imposition of the annual Stormwater Fee. The Stormwater Utility Ordinance describes how the fee is calculated and authorizes collection of the fee pursuant to the uniform collection method set forth in section 197.3632, Florida Statutes (the "Uniform Collection Act"), pursuant to which non-ad valorem assessments such as the Stormwater Fee may be collected on the annual ad valorem tax bill mailed each November. The City has imposed the Stormwater Fee and collected the fee pursuant to the uniform collection method each year since 2005. | attachments=1 | reports=1