- July 31, 2026
Ormond Beach commissioners signaled they intend to keep the city's property tax rate unchanged for the 2026-27 fiscal year, but several members pushed to trim spending as the city prepares for the possibility of sweeping property tax changes that could significantly reduce future revenues.
During a July 28 budget workshop, staff presented a proposed $152 million budget that maintains the city's operating millage rate at 4.3202 mills, the same as the current fiscal year. The spending plan emphasizes public safety, infrastructure improvements and parks while preserving reserves ahead of a proposed constitutional amendment that could substantially reduce future property tax revenues.
The proposed budget totals $152,035,454 and includes continued investments in police and fire services, a $17.6 million stormwater pump station project largely funded through grants, reconstruction of the Ormond Beach Sports Complex softball fields, the design of Nova Field No. 1 and reconstruction of the Riviera Park fishing pier. It also projects General Fund reserves of 15.6%, consistent with the commission's reserve policy.
Staff told commissioners the budget process began months earlier than usual because of uncertainty surrounding property tax reform being considered at the state level.
If approved by voters in November, the proposed constitutional amendment would eventually expand homestead exemptions and could eliminate homestead property taxes altogether. Staff estimated Ormond Beach could lose nearly $5 million in revenue in fiscal year 2027-28, followed by another $3.2 million the following year.
Although those changes would not affect the upcoming budget, staff said they influenced the city's strategy of maintaining the current tax rate while preserving reserves for future years.
The proposed operating millage remains at 4.3202 mills, while the overall citywide tax rate would decrease slightly because debt service for the Andy Romano Beachfront Park bonds is declining as taxable property values increase. The proposal represents a 3.37% increase over the rollback rate of 4.1794 mills, with the average homesteaded property owner expected to pay approximately $9.55 more annually under the city's portion of the tax bill.
Deputy Mayor Lori Tolland reminded commissioners that the tentative millage approved during the budget process establishes only the maximum rate the city may levy later.
"We can decrease it, but we cannot increase it," Tolland said before budget discussions continued.
While supporting the current tax rate, Tolland proposed delaying several capital projects until after November's statewide vote.
Among her suggestions were postponing $150,000 for Nova Field No. 1, delaying the next phase of security improvements for public works and fire facilities, and reconsidering other discretionary projects after voters decide the future of property taxes.
"I personally would like to keep the tax millage rate flat," Tolland said. "But I do have some suggestions on some expenditures I think we could delay."
Commissioner Kristin Deaton followed with a broader list of proposed one-time reductions totaling roughly $1 million, saying the city should demonstrate fiscal restraint without reducing core services.
Deaton proposed eliminating funding for bridge uplighting, removing Nova Field No. 1 from the upcoming capital plan, delaying additional security upgrades, reducing commissioner travel expenses, trimming the public art budget, reducing community event funding and ending the city's annual subsidy for youth sports organizations by shifting those costs into registration fees while continuing scholarship opportunities for families who need assistance.
"I propose we maintain the current flat millage and general funds so that we can preserve the quality of life and services that Ormond Beach residents expect and deserve," Deaton said. "However, due to a possible impending tax reform in November, I am proactively proposing the following one-time cuts that could be up to a million dollars from our budget."
Deaton emphasized that many of the reductions could be restored if the anticipated property tax changes do not materialize after the November election.
Commissioner Travis Sargent expressed hope that this year's budget process would proceed more smoothly than last year's discussions.
"I'll just say it. Last year. I hope this year goes better than last year's budget... We gave direction to staff to provide us a budget to keep the millage the same... I know last year was a whirlpool. Last minute I came in with cuts... I got labeled as a disgrace or an embarrassment to the community... I am comfortable keeping the millage the way we asked staff. I understand putting some things on hold, but I will not put any safety issues, safety measures on hold."
Throughout the workshop, commissioners generally agreed on maintaining the current millage rate while debating whether certain discretionary projects could be postponed until the financial outlook becomes clearer after November's statewide vote.
No formal action was taken on Deaton's proposed reductions during the workshop. Commissioners are expected to continue refining the proposed spending plan before the first public budget hearing on Sept. 9 and the second and final public hearing on Sept. 23, when the commission is scheduled to adopt the final millage rate and fiscal year 2026-27 budget. Under Florida's Truth in Millage process, the commission may reduce the tentative millage rate before final adoption but cannot increase it.
