- July 30, 2026
Daytona Beach officials unveiled a proposed $406.5 million budget for the 2026-27 fiscal year Wednesday, outlining a spending plan that maintains the city's current property tax rate while investing in infrastructure, public safety and long-term capital improvements.
Presented during a budget workshop by the city's Budget Review Committee, the proposed budget totals $406,522,340, a 7.01% increase over the current fiscal year's adopted budget. The proposal includes a $164.2 million General Fund, nearly $24 million in capital investments and is based on maintaining the city's current 5.9300 millage rate.
In his budget message, Daytona Beach City Manager Deric Feacher described the proposal as "the first budget cycle developed under a comprehensive modernization of the City's budget process," citing a revised fund presentation structure, expanded financial narratives and a formal capital project scoring methodology designed to improve transparency and strengthen financial planning.
Feacher said the new budget format is intended to establish a stronger financial foundation for future budgets while meeting the standards of the Government Finance Officers Association's Distinguished Budget Presentation Award program.
Growth slows, spending priorities remain
The proposed budget was developed as Daytona Beach experiences slower revenue growth after several years of rapid increases fueled by new construction. According to the budget document, the slowdown places greater emphasis on the city's existing tax base and non-ad valorem revenues while lawmakers in Tallahassee continue discussing potential property tax reforms that could affect local governments in the future.
To prepare for those uncertainties, Feacher directed city departments to submit budgets with no new General Fund positions, identify 5% reductions in operating expenses, review all open capital projects and implement recommendations from the city's internal auditor aimed at improving transparency, including separate accounting for food purchases, travel expenses and vehicle allowances.
Although departments were prohibited from requesting new General Fund positions, the proposed budget includes four new enterprise-funded positions within the Water & Sewer and Stormwater departments. Because those positions are supported entirely through utility revenues, they were excluded from the hiring freeze. The positions carry a combined cost of $322,779.
Property tax rate unchanged
The proposed spending plan maintains the city's current 5.9300 millage rate, though commissioners will still have the option of adopting the rollback rate of 5.7309 mills during September's public hearings.
According to the budget document, adopting the current rate instead of the rollback rate would increase the annual tax bill by approximately $20.09 per $100,000 of taxable value.
The city's tax base continues to expand.
The presentation shows Daytona Beach's taxable value has reached $11.74 billion, including approximately $878 million in new construction, while each mill of property tax now generates more than $11.1 million in revenue.
Enterprise funds drive overall increase
Much of the overall budget increase comes from the city's enterprise funds, including water and sewer, stormwater, solid waste, Halifax Harbor and the pier.
According to the proposed budget, roughly $13 million of the increase is attributed to higher projected revenues within enterprise operations, including additional revenues for Water & Sewer, Stormwater and Solid Waste. Another $2.8 million reflects impact fee revenues that previously were budgeted later in the fiscal year through quarterly amendments but are now included in the annual budget for greater transparency.
Overall, enterprise funds would increase from $158.3 million this year to $171.7 million under the proposal. The General Fund would increase from $159.6 million to $164.2 million, a 2.87% increase.
Public safety remains top priority
Public safety continues to represent the largest share of General Fund spending.
The proposed Police Department budget totals $54.1 million, while the Fire Department would receive $20.6 million, together accounting for nearly $75 million in General Fund expenditures.
The budget also provides salary increases for city employees.
Public safety personnel would receive a 3% pay increase in October 2026 followed by an additional 4% increase in April 2027. Other city employees would receive a 3% raise in October and another 2% increase in April.
Nearly $24 million for capital improvements
The proposed budget includes $23.94 million in capital investments, with 28 of 66 requested projects receiving funding. Departments submitted more than $53 million in capital requests, leaving many projects unfunded this year.
Among the largest General Fund projects are:
The Community Redevelopment Agency budget also includes several major projects, highlighted by $3.01 million toward construction of the new Main Street pier. Additional projects include $244,097 for Sickler intersection improvements, $221,182 for South Atlantic streetscape improvements and $189,221 for Beach Street redevelopment.
Funding gaps remain
Despite the proposed capital investments, several high-cost projects remain unfunded.
City staff identified approximately $2 million needed for storm repairs at the pier, a $2.4 million marina bathroom renovation project and $300,000 for marina sidewalk repairs.
Staff recommends commissioners identify an alternative funding source for the pier repairs while completing the marina improvements in phases over multiple years.
Public hearings scheduled
The City Commission will continue reviewing the proposed budget before adopting a final spending plan in September.
The first public hearing on the proposed millage rate and budget is scheduled for 6 p.m. Sept. 9, with the final public hearing set for 6 p.m. Sept. 23 at Daytona Beach City Hall.
