City Commission sets preliminary maximum operating millage rate
July 31, 2026
The City Commission on Tuesday unanimously set the maximum preliminary operating millage rate for the proposed Fiscal Year 2026-27 budget at 3.2730 mills, the same as the current rate.
“This is a fiscally responsible budget,” said Mayor Debbie Trice. “Last year, after the devastating 2024 hurricane season, your City Commission initiated a 3-year plan to replenish the City's reserves. Year one results are running somewhat better than expected, putting Sarasota in an improved position to address emergency needs, such as removal of storm debris. We still need a bigger cushion, but we’re well on our way. The City’s administration, financial team and department heads worked diligently over the past seven months to assemble this budget which strengthens our financial position without increasing the operating millage or lowering our level of service to the community. We all owe them our thanks.”
With Hurricanes Debby, Helene and Milton requiring immediate upfront emergency recovery costs, the City’s reserves dropped below the recommended amount for a municipality. The City adheres to the Government Finance Officers Association’s recommended standard of maintaining reserves that are 17-25% of General Fund expenditures. With last year’s prudent financial planning, the City’s reserves are expected to reach the minimum recommended amount at 17.1%, or two months of operations, at the end of the current fiscal year on Sept. 30. Coastal communities, such as Sarasota, should have higher reserves in the event of a natural disaster.
The City has submitted the required documentation to the federal government for the hurricane expenditures and is awaiting reimbursement. Current storm recovery costs to the City’s General Fund are $16 million with the total storm recovery cost estimated to be $50 million.
The General Fund is the City’s primary operating account. It is funded by property taxes and used for day-to-day services, including public safety and emergency operations. The Sarasota Police Department, responsible for safekeeping the City that regularly can double in population with visitors and seasonal residents, accounts for over 53% of General Fund spending. Parks and Recreation, responsible for the maintenance of 56 municipal parks and recreational facilities plus landscaping within the rights-of-way and City facilities, represents 14% of the General Fund. Together these core services that make Sarasota a safe, attractive, desirable community to live and work represent 67% of the General Fund.
The Capital Improvement Plan totals $104.4 million for infrastructure improvements for Fiscal Year 2026-27 and reflects the City’s continued commitment to hurricane recovery, sustainability and environmental preservation, neighborhood improvements, street resurfacing, accessibility and much more. The plan balances storm recovery needs with ongoing level of service and growth considerations.
“This is a disciplined budget based on sound financial stewardship,” said City Manager Karie Friling. “The City is financially strong while delivering quality services that our residents expect. I’m grateful to our dedicated staff for doing an incredible job preparing this budget and making data-driven decisions to hold operating costs down.”
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 preliminary millage rate will be transmitted to the Sarasota County Property Appraiser, which will compile all proposed millage rates for individual properties and issue a TRIM (Truth in Millage) notice later this summer.
The proposed millage rate will be finalized during two public hearings at City Hall, 1565 First St.:
- Tuesday, Sept. 8 – 5:30 p.m.
- Monday, Sept. 21 – 5:30 p.m.
The proposed Fiscal Year 2026-27 budget is available online at www.Sarasotafl.gov
Media Contact: News@sarasotafl.gov
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About the City of Sarasota: The City of Sarasota is a diverse and inclusive community located on Florida’s Suncoast with 55,000 year-round residents, internationally recognized cultural arts venues, stunning sunsets along Lido Beach, restored Donald Ross-designed municipal golf course, and Major League spring training baseball with the Baltimore Orioles. Learn more about us at www.SarasotaFL.Gov
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