City Council - Special Meeting

Good evening, everyone, and welcome to our City of Fort St. Lucie Special City Council meeting this Monday, September 14, 2026, at 5.30 p.m. Madam Clerk, please call the roll. Councilwoman Morgan? Yes, ma'am.

Councilman Pickett?

Yes, ma'am.

Mayor Martin? Here, ma'am. Councilman Bonham?

Yes, ma'am.

Vice Mayor Karbala? Here, ma'am. Please stand for the pledge.

I pledge allegiance to the flag of the United States of America and to the republic for which it stands,

From public to be heard, would anyone like to address the council on any non-agenda related items? Seeing no one, I'll close public to be heard. Moving on to item five, first reading of ordinances, 5A, ordinance 26-84.

In ordinance of the City of Port St. Lucie, Florida, adopting the ad valorem millage rate for the fiscal year October 1, 2026 to September 30, 2027, providing an effective date. Thank you.

Good evening, Ms. Sturgis. Good evening, Madam Mayor, council members, leadership team, as well as all of the residents that are present. For the record, Caroline Sturgis, Director of the Office of Management and Budget. Tonight is the first public hearing on the city's proposed budget for fiscal year 2026 through 27. The second reading is scheduled for September 28. This budget does reflect our commitment to fiscal responsibility, strategic investment, and enhancing the quality of life for our city residents. Tonight's presentation is intended to be brief as we spent a significant amount of time reviewing the proposed budget during the summer workshop that we had in July. For residents who are in the audience or maybe viewing, if they are interested in additional information, we do have all of that available on the city's website at cityofportspsl.com backslash budget. A QUICK VIEW ABOUT ME BEFORE I GO INTO THE PRESENTATION IS THAT I HAVE BEEN WITH THE CITY FOR THE PAST FIVE YEARS BUT MY EXPERIENCE IN LOCAL GOVERNMENT DOES EXTEND OVER 25 YEARS WITH MAJORITY OF THAT BEING MANAGING PUBLIC FINANCES. LET'S START OFF WITH A SHORT VIDEO THAT EXPLAINS KEY BUDGET HIGHLIGHTS BEFORE I CONTINUE WITH THE PRESENTATION.

Every day in Port St Lucie, countless services are provided by the city that keep life running smoothly. They're so dependable, most of us don't think twice about them, but they're essential to the quality of life we all expect. Clean, reliable water flowing from your faucet. Feeling safe in our homes, on our roads, or at local businesses. Well maintained streets and sidewalks. Access to parks and green spaces. Homes and buildings built to strong safety standards. All these services don't just happen on their own. They're part of a carefully planned city budget designed to support the community we all call home. This year's proposed budget remains focused on providing those services while being responsible with taxpayer dollars. When you look at your property tax bill, the City of Port St. Lucie makes up just one part of it, about 21%. The rest goes to St. Lucie County, the school district, fire rescue, and other state and local agencies. The City's share pays for the services that residents have told us are important, like police officers, park programs, fixing potholes, maintaining stormwater systems, and more. The budget is split into several funds, each with its own set of rules. Money dedicated for many critical services can legally only be used for those services because of this only a portion of the city's overall budget can be supported by property taxes, while the others rely on fees service charges or grants. This year, the City Council voted once again to lower the property tax rate marking 11 straight years of reductions. In that time, the city's property tax rate has dropped 25%, saving the average household about $2,000. Port St. Lucie now has the third lowest property tax rate among Florida's 10 most populous cities, a sign of smart financial planning. Instead of making big cuts all at once, the city follows a steady, long-term plan. This helps lower taxes while keeping services strong. This year's budget continues to invest in important infrastructure, but costs have gone up a lot in recent years. Repaving roads cost 58% more than in 2020. Sidewalk projects are 140% more expensive. Police vehicles, uniforms, and equipment are up over 80%, while the cost of a new water plant has grown by a staggering 333%. Because Port St. Lucie is a relatively young city, we don't have the same established infrastructure as older cities. And because we're growing so fast, most of our budget is spent on roads, water systems, and drainage. Unfortunately, our needs are much bigger than what our capital budget can cover. This year, there were 190 requests for infrastructure projects, totaling $1.7 billion. We narrowed those down to 112 critical projects over the next five years, costing $1.1 billion. As those costs continue to rise, planning the budget becomes more difficult, especially while lowering tax rates. To handle these challenges, the city has taken steps to cut costs and prepare for tough economic times. While Port St. Lucie has seen tremendous growth over the past few years, the city remains committed to planning ahead, spending responsibly, and listening to our residents. This strategy has helped lower property taxes for 11 years in a row, all while cutting our debt by $400 million and improving our bond rates. The city has also kept employee ratios low, leading to the second lowest cost of city services per resident among Florida's top 10 cities. All this happened while investing in infrastructure and public safety to help keep the city connected and protected. The work we're doing together today lays the foundation for the community we want tomorrow, one that is safe, connected, and built to last.

Well, definitely want to say a thank you to our communications team, all of the city departments, city management and leadership. All of their work is what went into the production of that budget video. So moving on with the presentation, the objectives of this proposed budget are to keep everyday city services running reliably from public safety and roads to parks and customer service, continuing smart long term debt management so we can borrow responsibly and pay down what we owe, maintaining city councils target reserve across all major funds so we are prepared for the unexpected. and to plan prudently for emergencies and resilience. Decisions the City Council will be asked to make tonight are adopt the updated property tax millage ordinance at 4.8750 mills, This is a tenth of a mil reduction from the current year. Adopt the fiscal year 2026 through 27 budget ordinance totaling $975,576,281. Adopt the fiscal year 2026 through 27 capital improvement program resolution. Collectively, these actions will guide our financial strategy for the upcoming year. The proposed budget is built around the City Council's strategic plan, and it is responsive to the continued growth the city is experiencing despite facing economic uncertainties, including inflation, rising costs of delivering public services, and potential reform of property tax administration. The operating plan is at $741.8 million, and this does support everyday services such as police protection, park maintenance, trash collection, and road upkeep. The capital plan is at $229.8 million, and this funds large, long-range investments such as new roads, improving stormwater systems, and constructing water facilities. The city's total budget is $971.6 million. Positions for the upcoming year is increasing by seven, and these are enterprise-funded positions through Utility Systems Department. The general fund is at $232.5 million, This is a 9% change from the current year. We're seeing about $19 million. Just want to quickly address what's driving that increase. As we had discussed on the summer workshop, most of this increase is a $10 million transfer that is coming out of the Governmental Finance Corporation. This is a repayment to the general fund. There is $8 million in new revenue, which is due to growth, both in population as well as property valuation. That $8 million is being set aside into reserves, which will help us to offset potential revenue loss related to Amendment 3. And the balance is related to inflation. The total millage property tax rate is at 4.8750. This does reflect a tenth of a mill reduction. What changes are we seeing in the proposed budget that is before you today versus what was presented to you in July? During the summer workshop is that this budget is at $975.3 million is what we presented to you in July. Now we're presenting $971 million. The significant change was that we did incorporate council's direction to reduce the millage rate by a tenth. How are city funds organized? While government budgets are sometimes compared to household budget, just want to take a brief moment to state why they operate differently and that government budgets are more complex. We do manage fund types to ensure accountability and transparency. Instead of being able to spend money wherever it's needed, cities are required to follow rules and regulations. on where each dollar can be spent. So each fund has its own job that it is required to perform. This means when we collect money for stormwater fees, those fees are used to maintain maintain our stormwater system and cannot be used for trash collection and water and sewer fees. Those fees cannot be used for road repairs. Keeping funds separate like this ensures that the city is following the law. It stays accountable and it is also transparent with our residents. WHERE DOES THE MONEY THAT THE CITY COLLECT COME FROM? PROPERTY TAXES MAKE UP ABOUT 13% OF THE CITY'S TOTAL BUDGET. MOST OF THE CITY'S FUNDING SOURCES COME FROM OTHER SOURCES INCLUDING GAS AND SALES TAX, USER FEES FOR THE UTILITY SYSTEM AND STORM WATER. licenses and permits, grants from state and federal government as well as bonds. As I just mentioned, these dollars, they all have strict guidelines on how they can be spent. Looking at the proposed total millage or property tax rate for the upcoming fiscal year, it is at 4.8750. This is continuing the long-term trend of annual incremental reductions over the past 11 years. Since the fiscal year of 2015 through 16, the total millage rate has dropped by 1.7539 mills. This represents a 26.5% reduction overall. If one is to look at a county property tax bill for an average assessed property value, the city only controls two line items on your tax bill, and that makes up 20% of your upcoming tax bill. That means 21 cents of every dollar goes to the city to provide services such as public safety, parks and recreation, neighborhood services, and special events. 79 cents of every tax dollar are for other taxing authorities, including the county and the school board. How does the city's tax rate compares to other cities? Among Florida's large cities, Port St. Lucie ranks as the third lowest millage property tax rate among the top 20 most populous cities in the state of Florida. This does reflect our commitment to affordability and fiscal discipline. What does a millage change mean for a median home? There are two components used to determine the amount of taxes a property owner pays. It is the millage rate and the assessed value. The city determines the millage rate, but the county property appraiser determines the value of your home. For a property assessed at $243,009 with a homestead exemption of $51,411, the taxable amount is $191,598. With the millage reduction, the city taxes would go from $953 to $934 for the upcoming year. This is saving this particular property owner $19.16 for the upcoming year. Looking at property values versus the tax rate, as a reminder, the city does not control property values as those are set by a St. Lucie County property appraiser. Over the past 10 years assess values with a homestead have rose by 26.8%. Uh, averaging about 2.7% annually, uh, during the same period, the property tax rate has decreased by 25% averaging a savings of about two and a half percent annually. So based on the past 11 years that city council has been able to reduce the property tax because of the council's commitment, the millage rate has been reduced each year incrementally for the past 10 years. And if it is approved tonight, it would continue for 11 consecutive years. Compared to the fiscal year 2016 rate of 6.6289 mills, the cumulative city tax savings for a median homesteaded property totals about $1,865 in savings over 11 years. Whether your home is valued at $250,000, $500,000, or $750,000, the proposed millage rate offers savings. For example, a home assessed at $486,000 is saving $43.46 this year alone. For new homeowners, your tax bill is based on new values calculated by the property appraiser's office after you purchase your home. Therefore, your values and taxes will be different than those of the prior owner. This chart shows how losing the homestead protection and resetting assessed value can increase city taxes, even with a lower property tax rate. The city portion rises from $588.46 to $1,562.93. And looking at all taxes, including the county and the school board, that will rise from $2,800 to over $7,000. That difference reflects the new owner's higher assessed value and the lack of the prior homestead exemption. This is not due to an increase in tax rate.

Caroline, I appreciate you pointing that out. I think all of us every year have conversations with new homeowners that have recently moved to the city within the prior year and they don't understand how the taxes work and they don't understand that when they purchase the home, the prior exemptions do get wiped away and a new value is assessed. I know that every single one of us deal with that, like I mentioned, every year and have to explain that because for whatever reason that doesn't get explained to people who are either buying new homes or purchasing existing homes. So thank you for that. It's really important to point out.

Absolutely. Thank you. Reading your trim notice, trim is truth and millage notice. Just want to take a moment to remind our residents and viewers that the city controls only two line items on their tax bill. Those items are the city of Port St. Lucie ad valorem taxes and the voted debt for Crosstown Parkway. That was something that was voted by our residents. And this trim example is for a property owner from a recent sale. When the property changes ownership, Florida law requires that the property appraiser to remove the exemptions and reassess the property so the assessed value equals the just or market value. This takes effect on January 1 after you purchase your property. The save our homes benefit for a prior home owner is a non transferable item. So for this particular property, the market value last year was at $331,000 and it is $320,000 this year, a slight decrease. The taxable value last year was at $118,000 including the application of the save our homes benefit. This year, due to the recent sale, the taxable value increased to $320,000, which equals the just or market value of that property. This tax bill does show the separate line items for the multiple taxing authorities that the city controls. Once again, a reminder, it is just the two line items. Also on your tax bill, there are two different sections. The ad valorem taxes that are found on the top half of your tax bill, those do include real estate taxes. And the non ad valorem assessments are located on the bottom half of your tax bill. And they include assessments for stormwater, solid waste, street lighting, and community development district assessment for those individuals that live in a CDD area. I must pause to note that the city does not control those CDD fees. Looking at the capital portion of our budget, the city is investing over $229 million in infrastructure to keep up with growth. THE CAPITAL PLAN IS AMBITIOUS, MAKING UP ABOUT 24% OF THE PROPOSED BUDGET. HIGHLIGHTS IN THE CAPITAL BUDGET DOES INCLUDE ROAD IMPROVEMENTS AT PORT ST. LUCIE BOULEVARD SEGMENT ONE, GATLIN AND SEVONA INTERSECTION, PAR DRIVE INTERSECTIONS AND THE WIDENING OF CALIFORNIA. There are utility system projects, including the discovery RO plant and injunction and monitoring wells. This slide here displays the state required truth and millage announcement that we must make at a public hearing. The name of the taxing authority is the city of Port St. Lucie. The rollback rate is 4.1951 mills. The rollback rate is that would bring in the same amount of ad valorem tax revenue as the prior year, adjusted for new construction and dedicated increment value, such as those in a CRA district. The percentage of increase over the rollback rate is 9.91%. The operating millage to be levied is 4.6107 mills. The voted debt service millage is 0.2643 mills. Therefore, the total millage is at 4.8750 mills. Trim notices were mailed to all property owners in August. This is mandated by the state with the proposed millage rates and public hearing dates and times. On September 24th, a legal notice will be published on the county's website regarding the proposed millage rate. This advertisement will meet the state mandate. In summary, staff is recommending that City Council adopt the millage rate ordinance for operating at 4.6107 mills, which is a 500th of a mills reduction over the current year rate of 4.6607 mills. And a debt service millage of 0.2643, which is less than a current year by 0.05 of a mill. The total millage is 4.8750. WE ARE ALSO ASKING COUNCIL TO ADOPT THE BUDGET ORDINANCE FOR FISCAL YEAR 2026-27 APPROPRIATING $971,576,281. AND FINALLY, WE ARE ASKING COUNCIL TO FORMALLY ADOPT THE CAPITAL IMPROVEMENT PROGRAM RESOLUTION FOR FISCAL YEAR 2026-27. This concludes my presentation. As a reminder, this was intended to be brief. For those who are interested in more information regarding the budget, it is available on the city's website. With that, Madam Mayor, myself and staff are ready to answer any questions.

Thank you so much for the presentation. Really appreciate it. Council, any questions? Any questions?

Well, I was just going to say a comment on the trim public announcements, the one that you have to read. That information is true, but it is truth without context. And so I wanted to provide a little bit of context. So one of the reasons, and one of the reasons I've been very passionate about what the city's done, even before I was on the council, is I believe that year over year, decreases result in an overall lower tax bill. And so you could have a taxing authority while everything was quiet that just sat there and left their millage rate the same. So maybe they left it at 6 mils or 7 mils or 8 mils year after year after year. And now that all the news is out about property taxes and people are all upset about their tax bill, they may do a one-time rollback rate. If they had simply done the same reductions that this city had done year over year over year, their millage rate would actually be significantly lower than it is today at their current millage rate. And that's why incremental, even though it isn't showboaty, even though it isn't maybe the best thing politically, but incremental tax reductions result in a lower tax bill. I looked at my own tax bill. I compared the 2025 tax bill to the 2019 tax bill. The difference in my 2025 bill and my 2019 bill, I paid $8.50 more to the city of Port St. Lucie in 2025 than I paid in 2019. That's less averaged out, less than $1.50 increase a year to the city. I don't know anything that increased $8.50 pre-COVID. I looked at those other taxing authorities, and those are up hundreds of dollars. And so when you look at your tax bill and you see, yes, you are paying more, but it's not because of this. There are several bills I looked at. There was a property I looked at in Tradition. They actually paid $12 less to the city in 2025 ad valorem than they did in 2019. And so I just want to point that out because that is truthful information on the sheet. That is what our rollback rate was and is, but it doesn't really tell the whole story. Thank you.

Thank you. Thank you.

I just come in. That's a great explanation. Thank you.

There's a great explanation. Yes.

So and I think it was a great explanation. And I did the same thing with mine. I look back when I moved into my home and I noticed that my city taxes have increased approximately. I think it was like twelve dollars from ten years ago. But my other taxing authorities were approximately about 20% of an increase from that point, from 10 years ago. So I just wanted to note, because on the city fund general revenue, the revenue sources, Caroline, I just want it for the record. that $128.9 million, which is 13%, is comprised of property taxes. But that's more than 50% of the general fund. And so the general fund is $232 million. And I just wanted the public to know that the general fund covers animal control, all the administration departments, including city attorneys, city manager, code, Communication, Finance, Human Resources, IT, OMB, Parks, Police, Emergency Management, Neighborhood Services, Planning and Zoning, Special Events, the Mid-Florida Event Center, Public Works Department, and I know I'm missing a few others, but I just wanted to say that When people are looking at the property tax pie as far as how is it comprised and how it's utilized, it's important to share that all 128.9 million go to support those services. And then anything additional that we have above and beyond that, as we've had council discussions, we put towards usually capital improvement programs and projects. So I just thought it would just be important. I don't know if you want to add to what I said, but I just wanted to.

Sure. Thank you, Madam Vice Mayor, for elaborating on that. The only... Additional comment that I'll add to that, $129 million, that's for property taxes. We do have a small portion that's also going to support our road and bridges, and then there's also a portion for the crosstown voted debt. So... Yes, so yes, the general fund portion is even less than that $129 million. It's closer to, I think, $113 million, and the balance is going to the road and bridge fund and then the crosstown fund. So on your list, if you ever repeat that list again, you'll just add on that it does also support some road projects. Thank you. You're welcome. Thank you.

All right, if there's nothing else from Council, I'll open the public hearing. Would anyone like to address the Council on Ordinance 26-84? Seeing no one, I'll close the public hearing. Council?

Motion to adopt the millage rate ordinance at the operating rate of 4.6107 mils, which is a reduction of 0.050 mils from the current rate of 4.6... No, no, no. No? The total millage is 4.8750. Wait, I was reading... Oh, you were reading the whole thing?

Yep, I was reading because I was... Oh, okay. Confused me there for a second. Go ahead, I'm sorry. Okay. I was just doing, I thought we had to say it exactly the way Caroline said it. We have to vote the total millage.

I was just trying to make sure I did it right. So I'll go ahead and make a motion, then I'll simplify it if everyone's okay with it so I don't confuse. I'll go ahead and adopt the total millage is 4.8750 mils. Second.

I have a motion and a second to adopt the total millage at 4.8750 mils. Any discussion? All those in favor? Aye. Make sure we get it right. Aye. Any opposed? Yes, as long as Caroline's happy. That's right. Okay. Motion is approved. Moving on to 5B, Ordinance 26-85.

An ordinance of the City of Port St. Lucie, Florida adopting the budget and making an appropriation for the fiscal year October 1, 2026 through September 30, 2027, providing for an effective date.

Madam Mayor, Caroline Sturgis again. Just to let you know that the presentation that we just concluded will also support item 5B as well as item 5C. Thank you.

This item is a public hearing. Would anyone like to address ordinance 26-85, which is adopting the budget? Seeing no one, I'll close the public hearing. Council? Motion to approve ordinance 26-85. Second. I have a motion and a second. Any final discussion? All those in favor? Aye. Any opposed? Motion carries.

Item 6, Resolutions 6A, Resolution 26-R74, a resolution of the City of Port St. Lucie, Florida, adopting the Capital Improvement Program, providing for conflict, providing for an effective date.

Thank you. This item is also a public hearing. Would anyone like to address the council? Seeing no one, we'll close the public hearing. Council, is there a motion?

Motion to approve Resolution 26-R74. Second.

I have a motion and a second. Any final discussion? All those in favor? Aye. Any opposed? Motion carries. No one has anything else? This council meeting is adjourned.