The Vero Beach City Council set a preliminary millage rate for the 2026-27 fiscal year at the current 2.9816 mills during a July 22 budget workshop, approving a $37,352,589 budget that includes $410,000 transferred from the General Fund's unassigned fund balance to cover salaries for three vacant police officer positions. City Manager Monte Falls told the council the city holds a strong financial position with a total General Fund balance of $54 million, including $17.7 million in unassigned funds and $35.56 million in committed reserves.
Falls recommended using $435,160 from the unassigned balance to offset the city's Other Post Employee Benefit trust payment, which would allow the vacant police positions to be filled. For a Vero Beach homeowner with a property assessed at $300,000, a $50,000 Homestead Exemption and a Save Our Homes 3 percent increase, the current millage rate would result in about $25 a year in additional ad valorem tax, Falls said.
Vice Mayor Linda Moore and Councilmember Taylor Dingle raised concerns about funding recurring positions with non-recurring money, particularly with Amendment 3 on the November ballot potentially creating a $1.3 million budget hole. Mayor John Cotugno said Vero Beach would fare better than other Florida communities if Amendment 3 passes because the city has four enterprise funds and a diversified tax base including industrial, residential and commercial revenue sources.
After debate, the council approved adding the $410,000 to the budget by offsetting capital expenses already included in the operating budget. Falls told Hometown News on Sept. 27 that the new police officer salaries would actually cost the city an extra $300,000. The council will return in September to set the final millage rate and adopt the budget.