💰 Council split 3–3 on taxes until Mayor Nic Allegretto cast the tie-breaking vote.
📈 The tentative millage rate is 4.3282 mills, a 6.62% increase over rollback.
🏗️ The $65.2M plan funds police, fire, IT, stormwater, and utility upgrades.
FORT WALTON BEACH — The Fort Walton Beach City Council approved its tentative millage rate and preliminary $65.2 million budget for fiscal year 2025–26 on Tuesday after a divided debate over taxes and spending that drew sharp exchanges among council members and comments from residents.
Mayor Nic Allegretto broke a 3-3 deadlock to set the tentative millage rate at 4.3282 mills, a 6.62% increase over the rollback rate of 4.0596 mills.
While the mileage remains unchanged from the previous year, rising property values in Fort Walton Beach will cause the city to accrue more revenue than in the last year.
Councilmembers Gloria Deberry, Ben Merrell and Payne Walker voted no, while Logan Browning, Bryce Jeter and Debi Riley voted to go ahead with the tentative rate.
The rollback rate is the level that would generate the same property tax revenue as in the previous year.
Jeter, who introduced the motion, said keeping rates flat year after year would ultimately force the city into a much steeper hike.
“I think eventually we’re going to get to a point to where we’re going to leave a board up here that’s going to have to go to our community and say, hey, we rolled back too long, now we’ve got to make a major increase,” Jeter said. “That’s a lot harder to do than doing this steadily going forward.”
DeBerry argued the city should return to rollback. “We’re not here to spend a lot of money. We’re here to take care of what our basic needs are, with a little bit of extra. That’s budget,” she said, warning against “frivolous” spending.
Walker pressed Jeter on whether the vote meant higher taxes. “As we know, property values tend to go up, and with that, the millage rate staying the same … will actually be notified as a tax increase,” Walker said.
Finance Director Nicole Nabors explained that the city budgets property tax collections at 95% to avoid overstating income. “It would be irresponsible for us to budget at 100% because we’re never going to collect 100%,” she said.
Merrell and Riley supported the tentative rate, with Riley noting the city must fund maintenance of aging facilities, including City Hall.
The preliminary budget projects $32.2 million in General Fund revenues, up 28% from last year. Primary revenue sources include:
The police department is slated for a significant increase, with spending set at $9.2 million, a 31.6% jump over FY 2025. Personnel costs make up nearly 85% of that budget, with additional funds for equipment, training, and $215,000 in capital outlay.
The fire department will acquire new cardiac monitors, a breathing air compressor for Station 7, and a refurbished fire engine.
The information technology department will see a 66% budget increase, climbing to $1.6 million, driven by professional services contracts and rising personnel costs.
The City Council’s own budget will decline 14% to $421,000, mainly due to the elimination of personnel costs such as salaries and benefits.
Other notable line items include:
Narrow approval and next steps
The preliminary budget passed on a 4-2 vote, with Walker and DeBerry opposed. Allegretto’s tie-breaking vote secured the tentative millage rate.
The final hearing is scheduled for Sept. 23 at City Hall. If approved, the new budget and tax rate will take effect Oct. 1.
Pro Communi Bono
St. Francis De Sales, Ora Pro Nobis!
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