2026_Master_Budget_Commission_Adopted.pdf

FISCAL YEAR 2026

ANNUAL

BUDGET

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MEMORANDUM

Date: June 25, 2025 To: Mayor and City Commission From: Franklin W. Martz II, City Manager Re: 2026 City Manager Draft Budget Transmittal and Discussion

We are pleased to present the City Manager’s Recommended Annual Budget for the coming Fiscal Year (FY), which begins on October 1, 2025. The annual budget is the City’s financial guide and provides insight into the plans for the coming year and beyond. Our annual budget review allows the City Manager to present the proposed budget to meet community needs and standards with a focus on the future and allows directors and senior staff members to provide overviews of each department.

BACKGROUND

The City of Altamonte Springs remains on a solid financial footing, continuing to operate debt-free for the 14th year in a row. We earned another clean, positive audit—further reinforcing our long-standing commitment to fiscal responsibility and operational excellence.

Since the beginning of 2025, the broader economic landscape has become increasingly complex and volatile. National economic events, particularly those involving federal fiscal policies and regulatory shifts, along with uncertain impacts stemming from federal policy changes—have introduced instability. Tariff impositions have slowed consumer and capital spending, resulting in an approximate 6 percent decline in sales tax collections compared to the same period last year while destabilizing markets. This economic cooling, paired with geopolitical and domestic policy uncertainty has contributed to an environment where projecting stable revenue is increasingly difficult. Our budget reflects that.

National GDP growth has moderated compared to the post-COVID rebound years, reflecting the cumulative impact of inflationary pressures, high interest rates and cautious consumer behavior.

These macroeconomic conditions ripple down to the local level, tightening fiscal margins and emphasizing the need for budgetary discipline and innovation. However, costs have not receded from the drastic increases we saw over the past few years. Also, though there are many positive outcomes due to homestead exemptions, a consequence is that the costs of services are carried by few unequally while the services are enjoyed by all equally.

At the local level, Altamonte Springs continues to experience measured growth, especially in the multifamily residential sector, where several apartment developments are underway or have recently been completed. This signals an ongoing demand for housing in our community. Despite this steady expansion, residential taxable values in Altamonte Springs have preliminarily risen to a modest 4.4 percent, resulting in limited additional revenue capacity for municipal services.

All cost categories have continued their upward trend—especially in utilities, materials, fuel and contracted services—driven by both inflation and the added burden of tariff-related price increases, which are all on top of the drastic increases seen over the past few years. These economic forces, while global in nature, present significant challenges to our ability to maintain the same high standard of service without repricing or cutting programs.

The City’s decision last year to increase the millage rate from 3.1 to 4.0 mills, our first millage increase in a decade, proved critical to stabilizing core services for F Y 2025. The City Commission’s courage was as great as its foresight. This adjustment successfully met its objectives, allowing the City to uphold service standards in a high-cost environment without depleting reserves or jeopardizing long-term fiscal sustainability, and provided stability for law enforcement. No additional increase is planned for F Y 2026.

PRESENT DISCUSSION

As we enter FY 2026, the City of Altamonte Springs continues to lead by example through strategic innovation, operational transformation and fiscal management. Our priorities this year are centered on cost containment that we have control over, revenue generation, investment in expanding workforce bandwidth and enhancing service delivery through innovative solutions.

Innovation may be an abstract idea for the local government—it is a core pillar of our operations.

With a long-standing commitment to pioneering solutions and business-like management, the City has led the way in municipal transformation, from sustainable energy initiatives to reimagining clean water technologies. This year, the launch of the Altamonte Global Innovation Lab (AGĪL) has further solidified our role as a national leader in forward-thinking governance.

Recognized as a model for scalable public sector transformation, AGĪL has fostered partnerships with visionary companies, enabling the testing and deployment of breakthrough technologies that benefit both our community and the broader Central Florida region. Every government in Seminole County is a member of AGĪL.

Artificial intelligence and automation now play a central role in streamlining operations, reducing manual workloads and reclaiming staff time for higher-value tasks. For instance, in our Human Resources Department, functions that once required multiple personnel and several hours are now completed by a single individual in under an hour, thanks to the integration of AI-driven solutions.

This efficiency ethos extends to infrastructure management. In FY 2025, we partnered with Robocist to deploy their AI-driven Road Triage technology, enabling predictive and cost-effective roadway assessments. This system has reduced inspection costs by a factor of ten while positioning the City to more proactively manage its 80-mile road network and improve hurricane readiness and recovery.

The City is driving forward-thinking solutions that empower residents and businesses for success.

Recognizing the growing importance of alternative transportation, particularly in connecting business centers, multifamily developments and regional rail systems, we are expanding options to enhance connectivity and mobility. Additionally, by embracing immersive technology and augmenting virtual reality, we are fostering business growth and economic resilience, attracting visitors, strengthening local industries, and enriching our community’s quality of life. CraneRIDES enhances mobility in our business districts by offering convenient, safe and smart transportation, reducing congestion and the need for repeated parking. Autonomous shuttles seamlessly connect activity centers, making exploration effortless. A new stop at AdventHealth has been added to the route, with plans to expand service areas and integrate with SunRail.

We also launched the City Career Accelerator program through a partnership with CareerSource Central Florida, offering on-the-job training to career seekers and students. This effort not only builds local workforce pipelines but also allows City operations to benefit from emerging talent in a fiscally responsible and capacity-building way.

Our commitment to supporting our employees is reflected in our partnership with Vetavize, a local, veteran-developed company that utilizes AI to streamline the complex military benefits process. This has enabled us to better recruit and retain skilled veteran employees, while demonstrating our ongoing dedication to those who have served our nation.

Recognition of our leadership in innovation reached a national audience this year, as Altamonte Springs was featured in the Lincoln Institute of Land Policy’s book City Tech: 20 Apps, Ideas, and Innovators Changing the Urban Landscape. Our inclusion alongside some of the most progressive cities in the world underscores our determination to lead with purpose, not passivity.

Through AGĪL and related initiatives, we are not only improving internal processes—we are creating new avenues for cooperative procurement across jurisdictions, increasing economies of scale, and laying the groundwork for regional cost savings and the adoption of innovation.

In alignment with our commitment to public safety and intergovernmental collaboration, the City is renewing its partnership with Seminole County Public Schools to continue staffing School Resource Officers (SROs) in local schools. We have reached a mutual agreement to share the cost of four SRO positions, with each party contributing fifty percent of the average personnel cost with one SRO position being fully funded by Seminole County Public Schools. Community safety and security is a hallmark of Altamonte Springs and our budget includes SROs consistent with our current agreement. We have an excellent partnership with Seminole County Public Schools and the Seminole County Sheriff’s Office. Additionally, the City has recently welcomed a new K-9 to our Police Department. Specially trained in firearm detection, she brings an added layer of security to our schools, reinforcing our collective dedication to student safety.

These advancements come at a time of continued economic unpredictability. Cost increases across all areas of government operation—driven by tariffs, inflation and policy uncertainty— make it imperative that we remain bold and nimble. The City’s innovation strategy ensures that we stay ahead of these challenges, providing our residents with services that are preserved and improved.

As of March 2025, the unemployment rate stood at 4.2%, up from 3.9% the previous year, signaling a return to a balanced pre-pandemic labor market where job openings align closely with the number of job seekers. Altamonte Springs is nearly fully staffed, with only a few vacant positions—allowing us to shift focus toward workforce investment and operational efficiency. To support employee growth and productivity, we partnered with Seminole State College to offer free technical training courses to staff at no cost to the City or the participants. Over 40 percent of our workforce took advantage of this opportunity, expanding their skill sets and enhancing their contributions to the organization. Strengthening our teams in this way empowers innovation and enables the City to do more with fewer resources.

For FY 2026, we have incorporated an average 3% performance-based merit increase as a fiscally conservative measure that reinforces our commitment to rewarding employees based on accomplishments rather than seniority or general cost-of-living adjustments. Through individualized performance programs, we continue to ensure that every employee is engaged, supported and recognized for their role in advancing the City’s mission. This is a very unusual approach for government and is more common in the private sector.

The recommended FY 2026 budget reflects a 10% reduction in expenditures compared to FY 2025. We are reducing our workforce by six positions in the upcoming year. We will raise some of our fees as well. Our budget represents a strategic reassessment of spending priorities amid rising costs, economic uncertainty and indeterminate future federal reimbursements. A key driver of the reduction is the decision to extend the service life of City vehicles rather than replace them at previous intervals. While this approach minimizes immediate capital outlay during this time of uncertainty, it may lead to higher maintenance costs in future years. Additionally, planned improvements and maintenance for city facilities have been deferred to future fiscal cycles, reflecting a prudent approach to financial management amid ongoing economic volatility. By prioritizing core services and essential infrastructure over non-critical facility upgrades, the City is ensuring fiscal flexibility while directing limited resources to the most pressing community needs. This approach may allow Altamonte Springs to adapt as much as possible without cutting services as the broader economic landscape evolves.

The recommended budget also reflects a focus on preserving and enhancing the assets that make Altamonte Springs a premier place to live, work and do business. It supports the City’s long-standing legacy of excellence, one that is widely respected and often replicated. We remain committed to bold self-sufficiency and forward-thinking innovation, enabling us to wisely steward community resources while safeguarding the City’s long-term resilience and sustainability.

On behalf of our Executive Team, it is my great pleasure to present to you the recommended budget for FY 2026. We respectfully request the City Commission’s favorable consideration of this year’s budget, which balances fiscal discipline and strategic financial planning amid uncertainty, while boldly embracing innovation to ensure the City’s continued sustainability in service delivery. We remain deeply grateful for the Commission’s continued leadership and steadfast commitment to our residents and businesses. As costs rise and economic uncertainty continues, our City’s stability and foresight remain our greatest strengths, but there is so much that is beyond our control. This budget is more than a financial plan—it is a statement of values, a roadmap for progress, and a reaffirmation of our shared mission to deliver exceptional service in innovative, more sustainable ways. It remains an honor to serve alongside each of you in shaping a resilient and forward-thinking Altamonte Springs.

City of Altamonte Springs, Florida Fiscal Year 2025 / 2026 Annual Budget

Overview

The budget is organized into twelve sections: an Overview, General Fund, individual sections for each operating department, a Projects Funds section, and the City’s Five-Year Capital

Improvement Plan. This overview demonstrates the City’s organizational and administrative structure, offering a transparent view of the sources and allocation of funds for each department and activity. With the exception of the General Fund and the non-utility capital projects funds, all other funds are presented in the department section responsible for that fund.

Each departmental section begins with a written overview, followed by a summary of the budget by fund (where there is more than one division or fund), and then the detailed budget for each fund or division. The departmental overview portion provides a discussion of expenditures.

Within the budget for each department, we include figures for the FY 2026 budget, the FY 2025 budget and the actual expenditures for the prior two fiscal years, 2023 and 2024. Presented in this overview section is a discussion of the budget in total, including anticipated revenues and expenditures on a City-wide basis.

The following two pages present a combined schedule of all funds and departments, showing in a single Statement of Revenues, Expenditures and Changes in Fund Balance.

ALL FUNDS COMBINED

Statement of Revenues, Expenditures and Changes in Fund Balance

Utility Funds Building Capital Impact General Water & Refuse Storm Inspections Projects Fee

Fund Sewer Disposal Water Fund Funds Funds Revenues

Property Taxes $ 20,246,071 $ - $ - $ - $ - $ - $ - Utility Charges - 26,420,460 2,394,910 2,187,462 - - - Utility Taxes 4,814,100 - - - - - - Franchise Fees 5,632,000 - - - - - - Local Business Tax 940,000 - - - - - - Building Permit, Inspections and Impact Fees - 639,930 - 5,010 1,530,000 - - Local Option Gas Tax - - - - - - - Intergovernmental Revenues 5,591,000 - - - - - - Reimbursements from

Other Funds 5,476,000 - - - - - - Charges for Services 2,142,070 - - - - - - Communication Taxes 1,711,250 - - - - - - Fines and Forfeitures 233,150 - - - - - - Miscellaneous Revenues 533,450 663,918 44,475 157,325 3,000 - - Transfers from Other Funds - 6,900,000 - - - 200,000 -

Total Revenues 47,319,091 34,624,308 2,439,386 2,349,797 1,533,000 200,000 - Less: Interfund Transactions - - - - - - -

Net Total Revenues 47,319,091 34,624,308 2,439,386 2,349,797 1,533,000 200,000 -

Expenditures Operating Expenses

Administration 9,115,038 - - - - 264,000 - Police 16,432,580 - - - - 50,000 189,817 Growth Management 1,427,346 - - - - - - Building and Fire Safety 173,937 - - - 2,706,130 - - Technology, Communications, and Strategic Initiatives 6,695,053 - - - - 4,500 - Public Works 979,428 21,636,203 2,289,766 3,917,564 - - - Leisure Services 6,195,132 - - - - 349,000 - Maintenance Services 8,322,859 - - - - 386,000 - Workers' compensation - - - - - - - Total Operating Expenses 49,341,373 21,636,203 2,289,766 3,917,564 2,706,130 1,053,500 189,817

Non-Operating Expenses Capital Outlay 38,500 17,315,982 657,505 3,201,628 3,249,508 4,233,705 960,064 Appropriated Reserves 220,000 634,999 25,000 412,500 25,000 330,000 250,000 Transfers to Other Funds - 7,100,000 - - - - -

Total Non-Operating Expenses 258,500 25,050,981 682,505 3,614,128 3,274,508 4,563,705 1,210,064

Total Expenditures 49,599,873 46,687,184 2,972,271 7,531,692 5,980,638 5,617,205 1,399,881 Less: Interfund Transactions - - - - - - -

Net Total Expenditures 49,599,873 46,687,184 2,972,271 7,531,692 5,980,638 5,617,205 1,399,881

Revenues Over (Under) Expenditures (2,280,782) (12,062,876) (532,885) (5,181,895) (4,447,638) (5,417,205) (1,399,881)

Fund Balances Beginning of Year 18,703,260 32,353,309 973,767 7,456,111 5,281,517 8,063,183 1,544,933

End of Year $ 16,422,478 $ 20,290,433 $ 440,882 $ 2,274,216 $ 833,879 $ 2,645,978 $ 145,052

Fiscal Year 2026 Budget Overview

ALL FUNDS COMBINED

Statement of Revenues, Expenditures and Changes in Fund Balance

Infra. Gas Alta Law Internal 2026 2025 Sales Tax Grants ARPA Family Cares Enforcement Service Commission Adopted Tax Fund Fund Fund Fund Trust Fund Adopted Budget

$ - $ - $ - $ - $ - $ - $ - $ 20,246,071 $ 19,325,497

- - - - - - - 31,002,832 28,858,278

- - - - - - - 4,814,100 4,669,100

- - - - - - - 5,632,000 5,410,900

- - - - - - - 940,000 856,000

- - - - - - - 2,174,940 2,625,800

- 610,000 - - - - - 610,000 620,000

3,600,000 - 6,218,664 438,340 - - - 15,848,004 21,611,278

- - - - - - 275,436 5,751,436 5,227,585

- - - - - - - 2,142,070 2,024,400

- - - - - - - 1,711,250 1,800,000

- - - - - - - 233,150 213,200

62,000 - - - 5,000 - 10,000 1,479,168 1,439,679

- - - - - - - 7,100,000 16,905,197

3,662,000 610,000 6,218,664 438,340 5,000 - 285,436 99,685,022 111,586,914

- - - - - - - (12,851,436) (22,132,782)

3,662,000 610,000 6,218,664 438,340 5,000 - 285,436 86,833,586 89,454,132

- - - - 5,000 - - 9,384,038 8,658,311

- - 106,091 - - 94,190 - 16,872,678 16,108,396

- - - - - - - 1,427,346 1,820,640

- - - - - - - 2,880,067 2,573,590

- - 7,354 - - - - 6,706,907 5,660,060 375,000 613,166 1,523,488 - - - - 31,334,615 28,770,079

- - - - - - - 6,544,132 6,576,316

- - - - - - - 8,708,859 8,256,415

- - - - - - 714,200 714,200 679,000

375,000 613,166 1,636,933 - 5,000 94,190 714,200 84,572,841 79,102,807

8,407,107 - 4,656,628 438,340 - - - 43,158,967 60,549,456 74,893 - - - - 31,000 - 2,003,392 2,561,039

- - - - - - - 7,100,000 16,905,197

8,482,000 - 4,656,628 438,340 - 31,000 - 52,262,359 80,015,692

8,857,000 613,166 6,293,561 438,340 5,000 125,190 714,200 136,835,200 159,118,499

- - - - - - - (12,851,436) (22,132,782)

8,857,000 613,166 6,293,561 438,340 5,000 125,190 714,200 123,983,764 136,985,717

(5,195,000) (3,166) (74,897) - - (125,190) (428,764) (37,150,179) (47,531,585)

6,621,117 526,552 74,897 - 8,693 354,796 857,524 82,819,658 63,509,429

1,426,117 $ 523,386 $ - $ - $ 8,693 $ 229,606 $ 428,760 $ 45,669,479 $ 15,977,845

Fiscal Year 2026 Budget Overview

TOTAL

The Total City Budget

The preceding schedule is helpful in displaying the budget for each fund side by side thus providing a better understanding of the relationship between the various funds and departments. The table below provides a condensed version of this schedule.

When we speak of “the budget,” we are generally referring to the expenditure or expense budget. However, the total budget includes expenses, estimated revenues and fund balances.

Under Florida law, the City must adopt a balanced budget. This means that budgeted annual expenses cannot exceed anticipated revenues plus the monies available in the unappropriated fund balance.

As shown in the table, the fund balance at the beginning of FY 2026 is projected to be $83 million, which, when added to the estimated revenues of $86.7 million, provides the City with a total of $169.7 million in estimated available funding for the coming fiscal year. Budgeted expenditures total $124 million, which, when subtracted from the total available funding, leaves a fund balance at the end of the year of

$45.7 million. The FY 2026 budget meets the legal requirement for a balanced budget. The following pages present an analysis of anticipated revenues, fund balances and expenditures. Property taxes of all kinds only cover 16% of our overall budget.

Total City Budget (in millions)

Increase 2025 2026 (Decrease)

Revenues Property Taxes 19.3$ 20.1$ 0.8$ Utility Charges 28.9 31.0 2.1 Franchise Fees and Utility Taxes 10.1 10.4 0.3 Federal and State

Shared Revenues 24.0 15.8 (8.2) Permits, Inspections and Impact Fees 2.6 2.2 (0.4) Charges for Services 2.0 2.1 0.1 Other Revenues 2.5 5.1 2.6

Total Revenues 89.4$ 86.7$ (2.7)$

Expenses Operating 73.9$ 80.7$ 6.8$ Capital 60.5 41.3 (19.2) Reserves 2.6 2.0 (0.6)

Total expenses 137.0$ 124.0$ (13.0)$

Revenues Over or (Under) Expenses (47.6)$ (37.3)$ 10.3$

Fund Balance Beginning of Year 63.8 83.0 19.2

End of Year 16.2$ 45.7$ 29.5$

The Economy

The global economy is in a state of turbulence and unpredictability as new geopolitical forces shape an uncertain future. Markets have reacted sharply to the formalized tariff strategy introduced by the Trump Administration, which includes substantial levies on steel, aluminum, and imported vehicles. These measures, coupled with additional tariffs on nations such as China, India, Japan and the European Union, have sparked concerns of a looming global trade war. The fear is that retaliatory moves by trading partners could lead to a slowdown in economic growth and even a recession.

Despite these anxieties, a hopeful outlook remains. If the tariff framework serves as a precursor to productive negotiations, the market may welcome trade agreements that ultimately benefit global commerce. A shift toward revitalizing manufacturing in strategically vital industries within the United States could also play a crucial role in steadying economic expectations.

At the same time, a new budget bill is expected before the August Congressional recess. The legislation may extend and make permanent the 2017 Tax Cuts and Jobs Act, stimulating business investment through measures such as immediate expensing for capital expenditures. Historically, economic cycles have been driven by business investment rather than consumer spending, making these changes pivotal to long-term growth.

Inflation stands at 2.3% in April 2025, a critical factor in shaping Federal Reserve policy. The Fed continues to adopt a wait-and-see approach in response to market volatility. The central bank remains poised to adjust policy only in reaction to a worsening labor market or rising inflation pressures. However, at this writing, labor market data remains resilient, while the unemployment rate holds steady at 4.2% in April 2025. This continued strength in employment provides the Fed cover to keep policy rates unchanged while it evaluates the longer-term impact of tariffs on the economy.

Revenues

Although property values in the City have risen by approximately 4.2% ($220 million), the combined effects of property exemptions and inflation have tempered the resulting revenue increase, which is approximately

$920,000. While home prices remain elevated, the housing market is somewhat stabilized, with a notable increase in inventory. New development supports ongoing municipal operations and reflects the broader economic stability in the area.

Although commercial and residential property taxes contribute only 23% of the City’s total revenue, the City maintains a diversified funding approach to avoid overreliance on a single source. The largest revenue stream - utility charges – accounts for 36% of total revenues in FY 2026, encompassing fees for potable water, reclaimed water, sewer treatment, refuse collection and stormwater services. Intergovernmental revenues, including grants and funds from state and federal sources, represent 20% of total revenues in FY

2026. This is largely driven by Infrastructure Sales Tax, Municipal Revenue Sharing Tax, and various federal and state grants. Additionally, franchise fees and utility taxes, applied to services such as electricity, communications, cable/satellite television, natural and bottled gas, water, and commercial refuse, make up 12% of total revenues.

These four primary revenue sources account for 91% of the City’s total revenues. Meanwhile, revenue from building permits, plan inspections, impact fees, and other growth-related activities

Projected City Revenues 2026 (dollar amounts are in millions)

2025 2026 Increase (Decrease)

Utility Charges 28.9$ 31.0$ 2.1$ 7% Property Taxes 19.3 20.2 0.9 5% Intergovernmental Revenues 23.4 17.7 (5.7) -24% Franchise Fees & Utility Taxes 10.1 10.4 0.3 3% Building Permits, Inspection Fees & Impact Fees 2.6 2.2 (0.4) -15% Charges for Services 2.0 2.1 0.1 5% Local Business Tax 0.9 0.9 - 0% Local Option Gas Tax 0.6 0.6 - 0% Fines & Forfeitures 0.2 0.2 - 0% Miscellaneous Revenues 1.4 1.5 0.1 7%

89.4$ 86.8$ (2.6)$ -3% is expected to remain at 3% of total revenues, as construction activity has slowed in FY 2025.

Other revenue streams - including recreation fees, local business tax, other charges for services, local option gas tax, fines and forfeitures (largely traffic fines), and other miscellaneous revenues

- are projected to remain consistent with the prior year. Both the Governor and the Legislature continue to discuss potential reduction or elimination of permit fees, business tax receipts, sales tax, property tax, utility fees, transportation impact fees and other impact fees. Additionally, communication taxes have been identified as a revenue source under consideration or elimination. Elimination of any of these could be disastrous for a debt free City like ours.

Other Revenue Sources

Other important sources of City revenue include funds from the

State through municipal revenue sharing and the local government’s half-cent sales tax. Both of these are supported mainly through sales taxes. In FY 2025, we are seeing a slowdown in consumer spending due to higher interest rates and increases in housing and utilities, with a projected decrease of 8% in municipal revenue sharing taxes and a decrease of 6% in the half-cent sales tax compared to the prior year. In FY

2026, we are taking a conservative approach to our revenue budget, anticipating a 5% decrease in municipal revenue sharing taxes and an 8% decrease in half-cent sales taxes compared to the projected end-of-year revenues for FY 2025.

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

2021 2022 2023 2024 2025

Annual Percentage Change

Revenue Sharing Sales Tax

Other revenue sources tied to retail sales include communications services tax and local gas taxes. The communications services tax applies to telecommunications, video, direct-to-home satellite/cable, streaming services and other related services. This revenue stream remained stable throughout the pandemic, as business operations were largely unaffected by shutdowns. However, legislative proposals for tax reductions in this sector may lead to future declines in revenue.

Similarly, gas taxes have experienced a slight decline over the past few years. With a FY 2026 budget of $610,000, gas taxes account for only 0.7% of total revenues. Federal, State, and local gas taxes serve as the primary funding source for transportation infrastructure, including roads, airports and mass transit systems. As alternative fuel options become more prevalent, these revenues are proving insufficient to sustain and expand our transportation infrastructure.

Conclusion

The City of Altamonte Springs remains committed to fiscal responsibility, delivering high-quality services at a competitive cost, even amid rising expenses. This budget takes a conservative approach, reflecting the strategic and innovative efforts of our team to optimize resources and enhance efficiency. By prioritizing innovative management practices, best-in-class budget and financial management practices, we ensure the City's continued financial stability for the upcoming year. Our mission is to provide exceptional services to residents at a fair price while upholding our commitment to responsible stewardship of public resources.

$0 $500,000

$1,000,000 $1,500,000 $2,000,000 $2,500,000

Gas Tax & Communication Tax Revenues

Gas Tax Communication Tax

General Fund Overview

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund. Revenues from various broad categories support the General Fund.

General Fund Revenues

Property Taxes. The authority for the City to levy and collect property taxes is derived directly from the Florida State constitution as implemented by Chapter 166.221, Florida Statutes, which limits levies to 10 mills. The recommended FY 2026 millage levy is 4.0 mills. Property tax revenue for FY 2026 is estimated at $20.2 million, accounting for 42.7% of total General Fund revenues and cover 16% of our overall budget.

Public Utility Taxes. Florida municipalities may levy a public service tax on the purchase of electricity, metered natural gas, liquefied petroleum gas (metered or bottled), manufactured gas

(metered or bottled), and water service, not to exceed 10%. This authority is found in Chapters

166.231-235, Florida Statutes. The City currently levies a public service tax of 8%. Public utility taxes for FY 2026 are estimated at $4.8 million and account for 10.2% of total General Fund revenues.

Franchise Fees. Franchise fees are proprietary fees that are home rule revenue sources, based on the assertion that local governments have the exclusive legal right to impose such fees. The guiding legal principle is that the imposed fee is reasonable in relation to the government-provided privilege or service, or the fee payer receives a special benefit. The City imposes a franchise fee of 6% on electricity, 9.82% on natural gas, and 20% on commercial refuse services.

Franchise fees for FY 2026 are estimated at $5.6 million and account for 11.9% of total General

Fund revenues.

Local Business Tax. The local business tax represents the fees charged and the method by which a local government grants the privilege of engaging in or managing any business, profession and occupation within its jurisdiction. Authorization for this levy is found in Chapter 205, Florida

Statutes. Rates vary by business classification. Local business taxes for FY 2026 are estimated at

$940,000 and account for 2% of total General Fund revenues.

Communications Services Tax. A municipality may levy a local communications services tax on telecommunications, video, direct-to-home satellite and related services. Authority for this tax can be found in Chapter 202, Florida Statutes. The City's tax rate is 5.94%. Communications services taxes for FY 2026 are estimated at $1.7 million and account for 3.6% of total General

Fund revenues.

Local Government Half-Cent Sales Tax. The Local Government Half-Cent Sales Tax Program distributes a portion of state sales tax revenue via three separate distributions to eligible county or municipal governments. Additionally, the program distributes a portion of communications services tax revenue to eligible local governments. Allocation formulas serve as the basis for these separate distributions. Authorization for this program can be found in Sections

202.18(2)(c), 212.20(6), 218.60-.67, and 409.915, Florida Statutes. Classified as part of intergovernmental revenues, local government half-cent sales taxes for FY 2026 are estimated at

$3.3 million and account for 7% of total General Fund revenues.

Municipal Revenue Sharing. The Florida Revenue Sharing Act of 1972 created the Revenue

Sharing Trust Fund for Municipalities, which receives 1.3517% of sales and use tax collections and the net collections from the one-cent municipal fuel tax. Beginning January 1, 2019, 25% of the four cents of excise tax levied upon each motor fuel equivalent gallon of natural gas fuel is transferred to the trust fund. An allocation formula serves as the basis for distributing revenue to each municipality that meets the eligibility requirements. Municipalities must use the funds derived from the one-cent municipal fuel tax for transportation-related expenditures. Classified as part of intergovernmental revenues, municipal revenue sharing for FY 2026 is estimated at

$1.9 million and accounts for 4% of total General Fund revenues.

Charges for Services. Charges for Services are a form of proprietary fee based on the assertion that local governments have the exclusive legal right to impose such fees. Examples of proprietary fees include admission, franchise, user and utility fees. The guiding legal principle is that the imposed proprietary fee is reasonable in relation to the government-provided privilege or service, or the fee payer receives a special benefit. Altamonte charges users for various services, including recreation, police special duty assignments, reimbursement from Seminole

County for fuel used in County vehicles and various other services. Charges for services for FY

2026 are estimated at $2.4 million and account for 4.5% of total General Fund revenues.

Reimbursements from Other Funds. The City pays many administrative and other cross-functional costs directly from the General Fund. Some of these costs are attributable to other funds like the Water and Sewer Fund, Refuse Disposal Fund, Stormwater Management Fund, and

Building and Fire Safety Fund. The General Fund charges users for the costs of administrative services like the City Manager's Office, Human Resources Department and Finance Department, among others. These costs are reimbursed to the General Fund by the user funds.

Reimbursements from other funds for FY 2026 are estimated at $5.5 million and account for

11.6% of total General Fund revenues.

General Fund Expenditures

This budget is primarily organized by department. Detailed information on expenditures, including those from the General Fund, is available in the operating budgets of the City's various departments. Each department section has a summary page at the beginning, where General

Fund expenditures are clearly indicated.

General Fund Summary

The following pages contain three schedules related to the General Fund. The first is a Statement of Revenues and Expenditures, offering an overview of historical data, the current year's budget and next year's budget on a total fund basis. The second schedule provides figures for each revenue item in the General Fund. The final schedule is a summary of expenditures. These schedules are provided for informational purposes, and no further explanations are necessary.

General Fund Statement of Revenues, Expenditures and Changes in Fund Balance

Increase (Decrease) 2024 2025 Over 2025 Budget

Actual Budget Projected Amount Percent Revenues

Property Taxes $ 14,015,735 $ 19,325,497 $ 20,749,980 $ 20,246,071 $ 920,574 5% Utility Taxes 4,785,190 4,669,100 5,107,827 4,814,100 145,000 3% Franchise Fees and Permits 5,850,213 5,410,900 6,005,963 5,632,000 221,100 4% Reimbursements from

Other Funds 4,778,000 5,028,000 5,028,000 5,476,000 448,000 9% Intergovernmental Revenues 6,108,936 5,976,000 5,724,734 5,591,000 (385,000) -6% Communications Taxes 1,854,030 1,800,000 1,956,789 1,711,250 (88,750) -5% Charges for Services 2,695,244 2,024,400 2,200,602 2,142,070 117,670 6% Local Business Tax 989,200 856,000 1,108,757 940,000 84,000 10% Fines and Forfeitures 278,850 213,200 310,639 233,150 19,950 9% Miscellaneous Revenues 2,771,794 504,650 548,483 533,450 28,800 6%

Total Revenues 44,127,193 45,807,747 48,741,775 47,319,091 1,511,344 3%

Expenditures City Manager 1,379,471 1,136,981 1,389,261 1,028,875 (108,106) -10% Legal Services 462,966 501,922 468,397 766,148 264,226 53% City Clerk 625,722 775,820 606,267 814,807 38,987 5% Human Resources 889,873 969,205 840,699 1,106,747 137,542 14% Finance 1,937,270 2,186,557 1,864,872 2,173,842 (12,715) -1% Police 13,479,239 15,860,323 14,750,217 16,432,580 572,257 4% Growth Management 1,196,740 1,470,640 1,106,321 1,427,346 (43,294) -3% Building and Fire Safety 124,411 142,349 121,905 173,937 31,588 22% Technology, Communications, and Strategic Initiatives 4,818,882 5,624,060 5,456,529 6,695,053 1,070,993 19% Public Works 481,628 1,193,948 522,866 979,428 (214,520) -18% Leisure Services 5,655,941 6,225,166 5,038,624 6,195,132 (30,034) 0% Maintenance Services 7,043,720 8,070,415 7,174,831 8,322,859 252,444 3% Central Lines 2,358,908 2,751,826 3,282,806 3,224,619 472,793 17% Capital Outlay (100) 38,500 38,500 38,500 - 0% Reserve for Contingencies - 223,468 - 220,000 (3,468) -2%

Total Expenditures 40,454,671 47,171,180 42,662,095 49,599,873 2,428,693 5%

Excess (Deficiency) of Revenues Over (Under) Expenditures 3,672,522 (1,363,433) 6,079,679 (2,280,782) (917,349) 67%

Other Financing Sources (Uses) Repayment from 3rd gen. sales tax fund for Westmonte Park 700,000 700,000 700,000 - (700,000) -100% Transfer to Other Fund (2,050,000) (9,205,197) (9,205,197) - 9,205,197 -100%

(1,350,000) (8,505,197) (8,505,197) - 8,505,197 -100%

Net Change in Fund Balance 2,322,522 (9,868,630) (2,425,518) (2,280,782) 7,587,848 -77%

Fund balance Beginning of Year 18,806,255 21,128,777 21,128,777 18,703,260 (2,425,518) -11%

End of Year $ 21,128,777 $ 11,260,148 $ 18,703,260 $ 16,422,478 $ 5,162,330 46%

Commission

Adopted

Increase (Decrease)

2024 2025 Over 2025 Budget Actual Budget Projected Amount Percent

Taxes Property Taxes $ 14,015,735 $ 19,325,497 $ 20,749,980 $ 20,246,071 $ 920,574 5% Utility Taxes:

Electric 4,322,893 4,200,000 4,504,252 4,300,000 100,000 2% Water 392,734 405,000 508,528 440,000 35,000 9% Gas 40,305 35,900 63,114 45,250 9,350 26% Propane 29,258 28,200 31,933 28,850 650 2%

Communication Services Taxes 1,854,030 1,800,000 1,956,789 1,711,250 (88,750) -5% Local Business Tax 989,200 856,000 1,108,757 940,000 84,000 10%

Total Taxes 21,644,156 26,650,597 28,923,353 27,711,421 1,060,824 4%

Fees and Permits Franchise Fees:

Electric 4,217,964 4,100,000 4,283,072 4,200,000 100,000 2% Gas 87,107 80,000 112,944 82,000 2,000 3% Refuse 1,453,355 1,200,000 1,576,383 1,316,500 116,500 10%

Permits 91,786 30,900 33,564 33,500 2,600 8% Total Fees and Permits 5,850,213 5,410,900 6,005,963 5,632,000 221,100 4%

Intergovernmental Revenues Local Half-Cent Sales Tax 3,550,047 3,600,000 3,348,457 3,300,000 (300,000) -8% Municipal Revenue Sharing 2,156,401 2,000,000 1,978,937 1,900,000 (100,000) -5% Local grants 329,562 320,000 331,664 330,000 10,000 3% Other Intergovernmental Revenues:

Alcohol Beverage License 39,061 25,000 33,817 30,000 5,000 20% Fuel Tax Refund 33,866 31,000 31,860 31,000 - 0%

Total Intergovernmental 6,108,936 5,976,000 5,724,734 5,591,000 (385,000) -6%

Charges for Services General Governmental Charges

Reimbursement from Other Funds:

Administrative Overhead 4,778,000 5,028,000 5,028,000 5,476,000 448,000 9%

Fuel Sold to Seminole County 101,276 50,000 63,130 60,000 10,000 20% Other General

Governmental Charges 167,644 160,750 174,012 151,100 (9,650) -6% 5,046,920 5,238,750 5,265,142 5,687,100 448,350 9%

Public Safety Charges Police Off-Duty Extra Detail Fees 418,838 350,000 377,877 375,000 25,000 7% Fingerprinting 50,317 50,000 50,854 50,000 - 0% Other Public Safety Services 53,167 36,400 41,135 37,370 970 3%

522,323 436,400 469,866 462,370 25,970 6%

Commission

Increase (Decrease)

2024 2025 Over 2025 Budget Actual Budget Projected Amount Percent

Commission

Adopted Charges for Services (continued )

Transportation Charges Median Maintenance Charges $ 7,416 $ 7,400 $ 3,708 $ 3,000 $ (4,400) -59% FDOT Highway Maintenance 157,421 205,000 72,452 75,000 (130,000) -63%

164,837 212,400 76,160 78,000 (134,400) -63%

Physical Environment Charges Penalties 5,367 3,500 8,570 4,000 500 14%

5,367 3,500 8,570 4,000 500 -

Culture and Recreation Charges Library and Cultural Fees 10,155 7,350 8,612 8,200 850 12% Recreation Programs 1,354,050 857,500 1,013,904 1,053,100 195,600 23% Recreation Facilities 248,577 148,100 269,183 220,000 71,900 49% Recreation Events 121,015 148,400 117,166 105,300 (43,100) -29%

1,733,797 1,161,350 1,408,865 1,386,600 225,250 19% Total Charges for Services 7,473,244 7,052,400 7,228,602 7,618,070 565,670 8%

Fines and Forfeitures Fines and Forfeitures 104,531 80,000 125,348 80,000 - 0% Violation of Local Ordinances 58,431 39,700 75,362 50,000 10,300 26% Police Training Fees 17,232 13,000 16,406 13,000 - 0% Code Enforcement Fines 89,063 80,000 92,082 90,000 10,000 13% Parking Fines 308 500 1,183 150 (350) -70% Other Fines 9,285 - 258 - - -

278,850 213,200 310,639 233,150 19,950 9%

Miscellaneous Revenues Investment Income 2,308,138 300,000 291,752 325,000 25,000 8% Reimbursement for Damages 162,695 65,000 71,303 50,000 (15,000) -23% Sale of Surplus Equipment 33,876 30,000 14,092 15,000 (15,000) -50% Contributions 97,548 7,000 73,352 37,500 30,500 436% Other Miscellaneous Revenues 169,538 102,650 97,984 105,950 3,300 3%

2,771,794 504,650 548,483 533,450 28,800 6% Other Financing Sources

Repayment of Loan to 3rd Generation Sales Tax Fund 700,000 700,000 700,000 - (700,000) -100%

700,000 700,000 700,000 - (700,000) -100%

Total Revenues $ 44,827,193 $ 46,507,747 $ 49,441,775 $ 47,319,091 $ 811,344 1.7%

General Fund Expenditures

Increase (Decrease) 2024 2025 Over 2025

Actual Budget Projected Amount Percent Administration

City Manager's Office $ 1,379,471 $ 1,136,981 $ 1,389,261 $ 1,028,875 $ (108,106) -10% Legal Services 462,966 501,922 468,397 766,148 264,226 53% City Clerk 625,722 775,820 606,267 814,807 38,987 5% Human Resources 889,873 969,205 840,699 1,106,747 137,542 14% Central Lines 2,358,908 2,751,826 3,282,806 3,224,619 472,793 17% Accounting 727,415 795,933 686,228 810,345 14,412 2% Procurement 240,013 282,989 222,682 364,104 81,115 29% Revenue Collection 722,442 840,611 746,755 721,223 (119,388) -14% Risk Management 247,400 267,024 209,207 278,170 11,146 4%

7,654,210 8,322,311 8,452,302 9,115,038 792,727 10%

Police Administration 817,975 840,828 810,870 892,888 52,060 6% Investigations 3,031,371 3,381,248 3,420,707 3,688,615 307,367 9% Special Operations 2,996,247 3,785,081 3,051,870 3,885,167 100,086 3% Operations 5,140,090 6,046,911 5,384,960 6,002,509 (44,402) -1% Management Support 1,456,885 1,775,103 2,036,058 1,923,401 148,298 8% 2nd Dollar Training 30,608 30,000 45,751 40,000 10,000 33% Property and Evidence 6,063 1,152 - - (1,152) -100%

13,479,239 15,860,323 14,750,217 16,432,580 572,257 4%

Growth management Growth Management 1,196,740 1,470,640 1,106,321 1,427,346 (43,294) -3%

1,196,740 1,470,640 1,106,321 1,427,346 (43,294) -3%

Building & Fire Safety Code Enforcement 124,411 142,349 121,905 173,937 31,588 22%

124,411 142,349 121,905 173,937 31,588 22%

Technology, Communication and Strategic Initiatives Administration 965,291 949,489 975,076 1,240,989 291,500 31% Events 1,349,758 1,444,719 1,571,717 1,380,028 (64,691) -4% Information Services 1,950,370 2,334,551 2,163,640 2,749,047 414,496 18% Library 408,376 511,493 419,463 540,055 28,562 6% Science Incubator 145,087 383,808 326,632 379,404 (4,404) -1% AGīL - - - 405,530 405,530 -100

4,818,882 5,624,060 5,456,529 6,695,053 1,070,993 19%

Public Works Streets 481,628 1,193,948 522,866 979,428 (214,520) -18%

481,628 1,193,948 522,866 979,428 (214,520) -18%

Commission

General Fund Expenditures

Increase (Decrease) 2024 2025 Over 2025

Actual Budget Projected Amount Percent

Commission

Adopted Leisure Services

Administration $ 952,115 $ 1,075,409 $ 931,533 $ 1,009,974 $ (65,435) -6% Eastmonte Park 50,177 88,980 71,181 80,513 (8,467) -10% Merrill Park 12,005 28,300 14,677 29,700 1,400 5% Westmonte Park 164,804 165,800 136,225 181,800 16,000 10% Altamonte Recreation 3,182,120 3,327,332 2,689,898 3,379,771 52,439 2% Lake Brantley Sports Complex 96,954 68,521 67,853 75,521 7,000 10% Lake Lotus Park 195,785 269,850 197,957 278,190 8,340 3% Park Rangers 1,001,981 1,200,974 929,301 1,159,663 (41,311) -3%

5,655,941 6,225,166 5,038,624 6,195,132 (30,034) 0%

Maintenance Services Park Landscape Management and Operations 2,555,378 3,020,395 2,534,230 3,078,539 58,144 2% Fleet Maintenance 1,529,885 1,708,365 1,639,330 1,723,300 14,935 1% Facilities Maintenance 2,941,168 3,286,655 3,001,271 3,466,020 179,365 5% Tree Bank 17,289 55,000 - 55,000 - 0%

7,043,720 8,070,415 7,174,831 8,322,859 252,444 3%

Total Operating Expenditures 40,454,771 46,909,212 42,623,595 49,341,373 2,432,161 5%

Non-Operating Expenditures Capital Outlay (100) 38,500 38,500 38,500 - 0% Transfer to Other Funds 2,050,000 9,205,197 9,205,197 - (9,205,197) -100%

2,049,900 9,243,697 9,243,697 38,500 (9,205,197) -100% Reserves Reserved for Contingencies - 223,468 - 220,000 (3,468) -2%

Total Expenditures $ 42,504,671 $ 56,376,377 $ 51,867,292 $ 49,599,873 $ (6,776,504) -12%

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Administration

Table of Contents

Overview

Summary Budget by Fund

City Manager

Legal Services

City Clerk

Human Resources

Finance

Accounting Procurement Revenue Collection Risk Management

Central Lines

ALTA Family Cares Fund

Reserves and Contingencies (General Fund)

Workers’ Compensation Internal Service Fund

For budget presentation purposes, we group several departments and divisions under the single category of "Administration." These departments and divisions serve the City as a whole or provide support functions for the City's other departments or both. With certain exceptions, namely the City Manager's Office, the

City Clerk's Office, and the Revenue Collection Division of the

Finance Department, these departments and divisions do not offer direct services to the public. Instead, their functions are administrative; thus, we present them all under one title. The following pages will provide a comprehensive discussion of the budget allocated to each element of Administration.

City Manager's Office

The budget includes the costs associated with operating the City Manager’s Office and the salaries and other expenses of the City Commission. Included in the City Manager’s Office budget is the Emergency Management Administrator, a full-time position added in FY 2022 to enhance and expand the City’s emergency preparedness and response posture. This role has become increasingly important, especially as federal resources and funding that the City and our community have historically relied on may no longer exist in the future.

Legal Services Office

The Deputy City Attorney has been promoted to City Attorney following the retirement of the previous City Attorney. The Legal Services Office has been staffed with the Deputy/City Attorney and the City Paralegal providing legal support to City employees. Additionally, the City has contracted backup counsel for the City Attorney when the workload or scheduling requires additional assistance. Funds have been allocated to accommodate this backup support, and the previous City Attorney’s contract is set to expire in September 2025.

The Administration Section

City Manager’s Office Legal Services Office City Clerk’s Office Human Resources Finance Central Lines Appropriated Reserves Workers’ Compensation

Additionally, the increase in legislation affecting local governments continues at a relentless pace. Legal Affairs dedicates significant time and effort to tracking bills, assessing their impact on the City and engaging with the affected departments. The office also monitors bills that did not pass but are likely to be reintroduced in the next session, along with their potential effects on the City.

The City Attorney collaborates with departments to ensure compliance with new laws that require municipal action, procedural adjustments, or other necessary changes. Given the ongoing trend of legislation preempting local governmental authority, the Legal Services Office will continue to devote substantial time to reviewing, interpreting and integrating new laws into City operations in preparation for next year’s legislative session.

City Clerk's Office

The City Clerk’s Office serves as the official custodian of City records, playing a vital role in promoting transparency in local government. The department is responsible for preparing, preserving, and ensuring accessibility to official documents, including agendas, minutes, ordinances, resolutions, agreements, contracts and other legal records. To maintain compliance and consistency, the City Clerk’s Office oversees city-wide records management efforts, including retention, disposition and ongoing training for departmental records representatives.

Additionally, the department coordinates the preparation and distribution of meeting agendas and supporting materials for the City Commission, Code Enforcement Board and other Boards, including the 2025 Advisory Charter Review Commission. As part of its commitment to transparency and public access, the Clerk’s Office also responds to public records requests and manages the publication of legal notices.

Beyond records management, the department supports core governmental functions by maintaining and codifying the City’s Code of Ordinances and recording documents with the

Seminole County Clerk of the Circuit Court. The City Clerk’s Office also provides essential administrative services, such as issuing business tax receipts, processing special event and solicitor’s permits and managing the registration and renewal of telecommunications providers, solid waste franchises and recycling permits. Additionally, the Clerk’s Office serves as the central mail distribution hub for the City. It plays a crucial role in municipal elections by preparing key election-related documents and serving as the qualifying officer for candidates.