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Sarasota, FL: The City Commission adopted the Fiscal Year 2025-26 budget following a second and final public hearing Monday night with a modest operating millage increase to replenish reserves following last year’s costly hurricane season.
The $303 million total budget is $2 million less than the current budget while maintaining levels of service. The 3.2730 operating millage rate is slightly higher than last year with the additional revenue to go toward rebuilding the City’s reserves.
The median homeowner with a taxable value of $360,000 will pay an additional $84.63. The additional funds will go to replenish the reserves expended for hurricane recovery.
The City Commission set the preliminary operating millage rate in July at 3.3000 mills then lowered it to 3.2730 following the first public hearing Sept. 2.
The 3.2730 operating millage rate will generate an additional $4.7 million, which will be designated for reserves. The additional funds will boost the City’s reserves to 20% of General Fund expenditures and bring the City back into compliance with its reserves policy which follows government finance best practices.
The City adheres to the Government Finance Officers Association’s standard to maintain reserves of 17-25% of General Fund expenditures. Based on experience, some communities that are vulnerable to natural disasters go up to 30%.
With storm recovery expenditures estimated to exceed $20 million by the end of the current fiscal year on Sept. 30, the City’s reserves are less than the amount expended on Hurricanes Debby, Helene and Milton. The current budget is expected to end with a fund balance of $16.8 million or 15.6% of expenditures.
The additional funds generated will be set aside to rebuild the City’s reserves as part of a 3-year plan to replenish savings after incurring significant hurricane recovery costs.
“We understand residents and business owners are still recovering from last year’s hurricane season,” said Mayor Liz Alpert. “We’re balancing that with the need to be fiscally responsible and replenish the City’s reserves which were diminished by almost 80% due to hurricane recovery expenses. This budget presents a fiscally responsible path to restoring our reserves while maintaining the high level of service that Sarasota residents expect. Thanks to our Interim City Manager, Financial Administration staff and all involved with preparing this conscientious budget.”
The budget includes a significant investment in the repair and restoration of the City’s coastal parks, which suffered extensive hurricane impacts, alongside funding for citywide restoration and resiliency projects. All hurricane-related projects are now in the permitting phase with state and federal agencies. Project updates are available at www.Sarasotafl.gov/RestoringSarasota
While City staff will pursue every available means to recoup federal funding for hurricane recovery, the adopted budget does not include possible FEMA reimbursement dollars.
The Capital Improvement Plan totals $42 million for infrastructure improvements for Fiscal Year 2025-26, focusing on hurricane recovery, transportation safety, sustainability, utilities infrastructure, and accessibility.
The City maintains a high bond rating of Aa1 from Moody’s Investor Services and AA+ from Fitch Ratings, based on low debt burden and responsible budgeting practices.
The fiscal year for the City of Sarasota is Oct. 1 through Sept. 30.
Media contact: News@sarasotafl.gov
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About the City of Sarasota: Distinguished by U.S. News and World Report as the No. 11 Best Place to Live in the U.S., the City of Sarasota is a diverse and inclusive community located on Florida’s Suncoast with 55,000 year-round residents, several internationally recognized cultural arts venues, stunning sunsets along Lido Beach and Major League spring training baseball with the Baltimore Orioles. Learn more about us at www.SarasotaFL.Gov
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