Sewall’s Point sets 2026/2027 millage rate and budget | Martin County

SEWALL’S POINT – The Town Commission majority here formally set the $15.4 million 2027 Fiscal Year Budget and 3.27 millage rate to fund it with on Sept. 3, despite unsuccessful efforts by Commissioner Frank Tidikis to convince his colleagues to use the rollback rate instead, the property taxes needed to equal the same funding raised the previous year.

Finance Director Maria Pierce introduced the two companion agenda items that evening.

“The Town held a budget workshop on Aug. 8 where I presented the budget in brief for Fiscal Year 2027,” she said. “At the workshop, we discussed specific line items that were questioned, [and] I answered to the best of my ability at that time. The copy of the budget in brief is on the website for residents to view. At this meeting, we have to adopt the tentative millage and budget.”

Pierce then recited the exact ad valorem statutory language required by the State of Florida.

“The proposed millage rate of 3.27 mils is greater than the rollback rate of 3.0477 mils by 7.29 percent,” she continued. “Then we’ve got Resolution 10003-26, and staff is asking the Commission approve the tentative millage rate.”

Commissioner Frank Fender immediately a motion for approval, which was seconded by Commissioner Dave Kurzman. Commissioner Tidikis then launched a lengthy discourse while referencing a spreadsheet he’d prepared for each of his fellow Commission members.

“I’d like to address the millage rate,” he said. “I sat down with Ms. Pierce and went over this, and I adjusted it to her numbers where appropriate. If you look at the first revenue line, the Town of Sewall’s Point projected the 2026 [General Fund] revenue at $4,548,000, which is greater than the revenue for the 2027 budget. I think what we’re doing is overstating revenue and understating expenses.”

“To me, that is a conservative statement, right?” Commissioner Fender interjected.

“Yes it is,” Tidikis agreed. “It’s a question of how conservative do you want to be.”

The latter continued with his argument.

“For the operating expenses for the 10 months and projected out for 12 months, we’re 11.2 percent below the budgeted amount for 2027,” he explained. “If you look at the variance analysis, there’s some pretty hefty increases in the various departments. If you take what we’re anticipating coming in on the revenue and the operating expenses, we will have a surplus roughly of $405,000. I’m suggesting we take half of that and apply it to a millage reduction. So, rather than adopt the millage rate as it currently is, I’m suggesting a rollback rate of. .017 mils.”

Mayor Barile then noticed Pierce making her way to the podium.

“You must have read my mind,” he said. “Do you have an answer for this?”

“I don’t have an answer to the rollback rate,” the finance director said. “That being said, I do believe at the budget workshop we talked about addressing the reserves for the town after the budget was adopted and looking at where we finished the year at. With the number I provided to Commissioner Tidikis earlier, I would like to point out we’re at $6 million right now with all the funds combined.”

At the request of Town Manager Robert Daniels, Pierce provided more details of the three funding sources that make up the total budget amount.

“That’s the Discretionary fund and the General Fund,” she said. “With that, the revenues that go into the capital fund, if they’re invested, the interest goes into the Capital Fund. Whatever revenues are invested in the General Fund, that interest is going to be placed into the General Fund. If you want to bring your revenues to pinpoint what we’re really seeing and use every single line and adjust it, you can, but there’s variances, and we could end up with a surplus and you could end up with a deficit.”

Daniels also offered his perspective on the potential impacts of a millage reduction to the ongoing South Sewall’s Point resiliency work being funded by the Hazard Mitigation Grant Program.

“We’re hoping within the next week we’ll finally get the HMGP documentation we need,” he said. “Coming off from where we were in a cash-flow crunch and having to borrow money to make sure we could meet our liabilities, she’s taken the conservative approach, which I agree with. If we overstate our expenses, ultimately at the end of the year we’re going to be in a situation where we don’t have to worry about it.”

For his part, Mayor Barile worried the rollback millage rate might hamper future grant applications.

“If we cut back on that, that means that we have to borrow more money to apply for grants?” he asked.

“To match the grants, correct,” Daniels replied.

The remaining commissioners then responded to Commissioner Tidikis’ request, beginning with Vice-Mayor Kajia Mayfield.

“I think rolling back the millage rate is fundamentally a good idea,” she said. “After the projects are done, I would definitely revisit it, but I don’t think it makes sense when we have been working for years to try to get adequate funds to take care of these projects. I would also need a little more time to digest and look over your spreadsheet, but I appreciate all of the backup.”

Commissioner Fender, in turn, added his insight.

“I am in favor of the rollback, and I’m super appreciative of Frank’s work,” he said. “The mitigating issue right now is, I’m also a budgetary conservative and appreciate having the wiggle room. This would be awesome when we didn’t have the last phase of the flood mitigation pending. So, there’s still major capital projects coming down the pike that we want to make sure don’t get impacted. Thirdly, we’ve got Amendment 3 right around the corner.”

Commissioner Dave Kurzman agreed.

“I’m leery about doing anything right now,” he said. “Amendment 3 – we don’t know what the outcome’s going to be – and I don’t want to fall short on the project. Those are the two major concerns that I have right now. I don’t know what we’re going to spend next year and the year after if Amendment 3 does pass. We’re going to be in pretty bad shape.”

Commissioner Tidikis final argument failed to persuade them any further, and one of the two public speakers, Delano Lane resident Scott Craft, opposed lowering the millage rate.

“I don’t see is a lot of outcry from the public about lowering the taxes,” he said. “From what I hear, they’re pretty happy that you’re keeping the rate where it’s at. I don’t think we’re going to have too much money: There are going to be a lot of things that come up.”

The Town Commission then voted 4-1 to approval both the millage rate and budget in two separate resolutions, with Tidikis dissenting on both. The Board will hold its final budget hearing on Sept. 17.