The city is gearing up to adopt its 2027 budget, and while its property tax rate is holding steady, several fees are set to increase.

Periodic rate studies are done to ensure critical services are sufficiently funded, budget materials say, and this year, water and sewer, solid waste and parking fees could all go up in the new fiscal year.

Residential customers would see a $1.49 increase and commercial customers would see a $6.62 increase per month on their solid waste bill, according to agenda materials. City customers will also see a total increase of roughly $2.83 per month for water and sewer combined. For those who rent parking spaces in the Kleman Plaza and Calhoun Eastside parking garages, monthly leases would increase by $15.

“To ensure appropriate funding for critical services, utility rates and other fees are adjusted each October based on the Consumer Price Index, per the Code of Ordinances,” city staff wrote.

Amid these changes, the city commission approved the same millage rate of 4.4072 mills, which staff said gives the city a $2.5 million cushion for Tallahassee’s budget in the event property tax cuts are voted into effect. This means for the first time in a decade, the city’s deficiencies fund is “projected to be fully funded.”

The deficiencies fund is the city’s failsafe when there are “unforeseen emergencies and unanticipated expenditures in general operations,” agenda materials say. “It enables the city to operate efficiently without compromising its high service levels or reducing staff.”

The budget would still be considered a tax increase under state law because under the same millage rate the city would generate more revenue with rising property values.

The state legislature approved a ballot amendment that would increase homestead exemptions, erasing most property taxes on 92% of primary homes, as previously reported. The city is still projecting a $29 million hit to its budget within the first two years if voters OK this initiative.

Amid the uncertain future of property taxes — the city’s largest revenue source — the city offered a voluntary employee separation program as a way to cut costs in preparation for the toll this ballot amendment my take.

The city shelled out nearly $4 million in buyouts to the 171 city workers that chose to step away from their roles, but at the June 10 budget meeting, staff said the city should see $8.46 million in savings.

What’s in the Tallahassee budget for FY 2027?

If approved, the city will be operating under a $1.2 billion budget for the third fiscal year in a row.

The city’s budget is split between the operating budget, which accounts for $983.4 million, and the capital budget, which accounts for $282.7 million. Capital spending includes things like buildings, equipment, infrastructure and technology upgrades.

The largest fund within the operating budget is the general fund, which gets $236.7 million to spend on “essential city services that residents expect and enjoy,” such as the Tallahassee Police Department, roads and parks.

In addition to the general fund, the operating budget is made up of 13 other categories:

Aviation (Bobby Bowden-Tallahassee International Airport) – $21,658,408

Building code enforcement – $5,388,932

StarMetro, the municipal bus service – $21,693,151

Fire services – $65,360,029

Solid waste – $44,812,222

Golf courses – $1,407,331

Donations – $136,966 (For charitable donations the city receives and then funnels back out to support various public safety and social programs)

Former city budgets at a glance (totals)

FY 2023 – just over $1 billion

If you go

What: City Commission meeting

Where: City Hall, 300 S. Adams St., Tallahassee

Public comment: Residents may speak during the public hearing before the vote. Speaker cards are available before the meeting.

Elena Barrera can be reached at ebarrera@tallahassee.com. Follow her on X: @elenabarreraaa.

This article originally appeared on Tallahassee Democrat: Water, sewer, garbage fees slated for price hike in Tallahassee budget