City budget talks kick off with modest increase in spending proposed
Commissioners will be called on to set priorities in coming weeks
July 12, 2024
By Beth Kassab
Residents got a first glimpse at next year’s city budget — a $214.6 million proposal with a 3% or $6 million increase over the current year as property taxes remain a key driver of growth in the general fund.
The plan calls for the city to maintain the same property tax rate its held for 16 years, though residents will see additional fee increases for trash pick-up as a result of a contract negotiated last year and there are signals pointing to more fee increases for other services ahead.
Public safety remains the biggest expenditure in the general fund, rising from about 35% in 2024 to more than 42% in the new budget. The increase comes with four new proposed positions, including two new firefighters/emergency medical technicians, a fire logistics manager and a police grant and accreditation manager that will be upgraded from a part-time to a full-time position.
While inflation continues to put pressure on wages and building costs, the city’s general fund will see almost 7% growth to nearly $83 million as a result of increases in home values, fees for services and Winter Park’s share of the state sales tax. Other funds are flat or seeing declines.
The city’s proposed budget shows where dollars are coming from in the general fund. Source: City of Winter Park budget documents
The water utility, for example, is expected to see declining cash flow as inflation pushes up the costs to maintain the system, according to the budget presentation. The water rates customers pay are driven by the state’s regulatory agency called the Public Service Commission, but the index for regular increases are “are likely insufficient to handle future demand for investment,” the presentation said.
In addition, the city-owned electric utility will “likely need to consider a rate increase” next year due to higher costs within the power portfolio.
Also at play is the future of the city’s Community Redevelopment Agency, which uses a portion of county tax dollars to fund projects in a special district that covers downtown. The city is looking to the county to extend the CRA (which otherwise would sunset in four years) and expand its borders, but the Orange County Commission has yet to take up the matter.
Overall, there are about $126 million worth of projects in the city’s 25-year plan that don’t currently have a funding source attached to them. That means commissioners will need to continue to set priorities and make choices about how to manage the competing interests that come from wanting to maintain relatively low property taxes and fees for residents with improving services, infrastructure and amenities.
The proposed budget set aside a contingency of about $450,000, roughly the same as last year. The city’s reserves are expected to grow to about $21.2 million or about 27% of the recurring annual operating costs in the general fund, the proposal says. It would take about $2.7 million more to reach the goal of 30%.
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