On the agenda: Indian Harbour Beach meeting — License plate reader (Aug 11)

CITY COUNCIL BUDGET WORKSHOP
City of Indian Harbour Beach, Florida
Tuesday, August 11, 2026, at 5:30 PM
City Hall Council Chamber | 2055 South Patrick Drive

AGENDA
Mayor and City Council
Scott Nickle, Mayor
Adam Dyer, Deputy Mayor
Susan Ruimy, Council Member
David Nutt, Council Member
Neil Yorio, Council Member
Administration
John W. Coffey, ICMA-CM -City Manager
Karl Bohne — City Attorney
Nikki Gold — City Clerk
1.

CALL TO ORDER

2.

PLEDGE OF ALLEGIANCE FOLLOWED BY A MOMENT OF SILENT
MEDITATION

3.

ROLL CALL

4.

EXCUSAL OF COUNCIL MEMBERS

5.

ADDITIONS, DELETIONS OR CHANGES TO THE AGENDA, IF ANY

6.

NEW BUSINESS
a.

Review of the FY27 Proposed Budget

7.

PUBLIC FORUM

8.

ADJOURN

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CONTACT THE CITY CLERK AT 321-773-3181 AT LEAST 48 HOURS IN ADVANCE OF THIS MEETING.

CITY COUNCIL WORKSHOP
City of Indian Harbour Beach, Florida
Tuesday, August 11, 2026

AGENDA ITEM
Review of the FY27 Proposed Budget
Cost:

$21,165,068 (All Funds)

Attachments:

Presentation (to be provided and posted on the website prior to the
workshop)

Staff Recommendation:
Consider reviewing the FY27 Proposed Budget and providing direction to staff.
Background Information:
Previously, the City Council took the following actions towards the ultimate adoption of the
FY27 Budget:
• January 13, 2026:
• February 24, 2026:
• April 28, 2026:
• March 24, 2026:
• July 28, 2026:
• July 30, 2026:

Adopted the budget preparation calendar
Held a FY27 Budget kick-off workshop to provide strategic input to
staff
Held a workshop to review the preliminary FY27-31 Five-Year
Financial Model and Capital Improvement Plan
Approved not increasing the Stormwater Utility Assessment rate for
FY27
Adopted the tentative (maximum) FY27 millage rate
Received the FY27 Proposed Budget

Tasks remaining include:
• August 11, 2026:
Review of FY27 Proposed Budget (this workshop)
• August 11, 2026:
Adoption of FY27 Stormwater Utility Assessment Rate and Roll
• September 03, 2026: First reading of ordinances to adopt the FY27 Millage Rate and
Budget
• September 15, 2026: Second reading of ordinances to adopt the FY27 Millage Rate and
Budget

All Funds
The FY27 All Funds Proposed Budget is presented balanced at $21,165,068, which is
$1,781,551 or 9.19% higher than the FY26 Amended Budget, primarily due to muck removal
grant-funded projects in FY27.
General Fund
The FY27 Proposed Budget is presented balanced at $20,150,138, an increase of $622,382,
or 5.23%, higher, after removing one-time monies (i.e., impact fees, grant receipts, use of
fund balance). The FY27 Proposed General Fund Budget is built on the following
components:
• A millage (property tax) rate of 5.5077, which is 2.72% above the roll-back rate (revenueneutral) of 5.3618. The proposed millage rate is projected to yield $247,831 in additional
net revenue to fund recurring expenditures and to continue one-time funding for capital
projects. The proposed millage rate is 0.0022 or 0.04% lower than the current year's
millage rate of 5.5099
• No new positions, although 0.91 full-time equivalents (FTEs) are proposed to be added
to fully fund new positions added in FY26 totaling 62 full-time positions and 12.34 parttime/seasonal positions
• 3.25% salary/wage increase for all employees
• $177,760 increased cost to the City for the Police Pension Plan (offset by $115,000 onetime pre-pay to the Plan) (rates increased from 25.30% to 36.90%)
• Estimated 20% increase in employee health insurance premium costs
• Estimated 6% increase in liability and workers' compensation insurance premium costs
• $9,265,026 in capital projects of which $6,783,674 are grant/state appropriations
funded
• $155,896 City Manager’s Contingency for unforeseen costs and/or project overages
• $75,000 in Public Works contingency for unforeseen capital project costs
• $50,000 in consulting costs to conduct a fire assessment fee feasibility study
• $9,265,026 for 33 capital projects of which $6,783,674 are grant or state appropriations
funded
FY26 is projected to end with a total fund balance of $13,685,557, a decrease of $1,654,208
or 10.78% from FY25. The decrease results from using fund balance (exhausting the BRRB
reserves) to cover the overage in the ARPA-funded Algonquin Sports Complex expansion
project, the year-two costs of the Fire Station Annex project, and to roll forward project
expenses from prior years. Offsetting this use of fund balance are personnel savings and
unexpended capital project budgets (which will be rolled forward into FY27). When the use
of fund balance is removed from the equation, FY26 is projected to end with a surplus of
$74,706 in revenues over expenditures.

Stormwater Utility Fund
The FY27 Proposed Stormwater Utility Fund Budget is presented balanced at $1,011,884
and is $159,965 or 18.78% higher than the FY26 Amended Budget. Within the FY27 Proposed
Budget are $600,000 in one-time anticipated grant receipts and $350,000 in budgeted
capital projects. Additionally, $250,000 in capital projects are anticipated to be rolled
forward from FY26 into FY27 after the adoption of the new budget
Staffing
Proposed for FY27 are 73.84 FTEs, a
net decrease of 5.32 FTEs (6.72% of
total staffing) from the FY26
Approved Budget.

Previously partially funded positions
•

•

Additional 0.50 FTE full-time City
Manager’s
Office
Communications
Manager
position (0.50 FTE was funded in
FY26)
Additional 0.41 FTE part-time Fire
Department Maintenance Specialist II position (3.82 FTEs were funded in FY26)

FY26 mid-year changes reflected in the FY27 Proposed Budget
•
•

A net decrease of 5.0 full-time FTEs in the Police Department (transition of dispatch
services to the Brevard County Sheriff’s Office)
A net decrease of 1.23 FTE positions in the Fire Department

AG

8/5/2026

FY27 PROPOSED BUDGET
OVERVIEW

8/5/2026

1

August 11th City Council Workshop

1

FY27 PROPOSED BUDGET
OVERVIEW AGENDA
•
•
•
•
•
•
•
•

2

Changes since the April 28, 2026, Workshop
Basis of Proposed Budget
Budget Overview
Personnel
Initiatives
Future Challenges
Key Dates Remaining
Questions and Answers

8/5/2026

2

1

8/5/2026

CHANGES FROM THE APRIL 2026, FY27-31

5-YEAR FM&CIP WORKSHOP

General Fund
• Total revenues increased $393,124 (Annex appropriation offset by
net decrease of $44,376 in other sources)
• Total Expenditures decreased $351,784 (primary due to deferral of
capital projects to FY28 and reduced operating expenses)

3

Stormwater Utility Fund
• No significant change to revenues or expenditures
ARPA Fund closed out in FY26
8/5/2026

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BASIS OF FY27 PROPOSED BUDGET
• Continuation of “pay as you go” funding of capital projects, thereby
preserving the City’s debt free status
• Property tax millage rate of 5.5077, a decrease of 0.0022 or 0.04%,
resulting in $247,831 net additional tax receipts due to increased
valuations
• No increase in the Stormwater Utility Assessment fee
• Continuation of the shared Police Department Victim Advocate
position with the City of Satellite Beach
• Continuation of inter-agency funding for a full-time School Resource
Officer at Ocean Breeze Elementary School

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BASIS OF FY27 PRO. BUDGET (CONT.)
• Payroll increases due to
o 0.25% cost-of-living adjustment (COLA) for all employees
o 3.00% step or progression increase for all employees (except City
Manager), which will move them through their respective pay
grades
• Florida Retirement System employer contribution rates
o Regular class from 14.03% to 13.59%
o Senior Management service class from 33.24% to 32.60%
o Special Risk class from 35.19% to 37.74%
o Deferred Retirement Option Plan from 22.02% to 22.12%
• Increased Police Pension contributions from 36.90% to 42.8% (FY27
costs to be offset by $75,313 pre-paid contributions to the pension
plan)

5

8/5/2026

5

BASIS OF FY27 PRO. BUDGET (CONT.)
• 20% increase in employee health insurance premiums paid by the
City (renewal will be less than 10.00%)
• 6% increase in liability, property, and workers’ compensation
insurance premiums due to increased salaries and property
valuations
• A net decrease of 5.32 FTEs (6.72% of total staffing) from the FY26
Approved Budget
• Use of Fund Balance
o $812,500 budgeted for the Fire Station Annex project

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3

8/5/2026

BASIS OF FY27 PRO. BUDGET (CONT.)
Property valuation numbers obtained from the Brevard County Property
Appraiser’s Office indicate a 2.76% increase in existing property
valuations, coupled
with $2,933,672 in new
construction for a total
of $1,526,851,593 in
assessed valuation.
Combined, FY26 will
see a 2.96% increase in
valuations.

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8/5/2026

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FY26 G.F. REVENUES OVERVIEW
Budgeted for FY27 are
$19,337,638 in total
revenues for the General
Fund, which represents a
$5,613,028 or 37.8%
increase over the FY26
Amended Budget. When
one-time revenues are
removed from the
equation, FY27 total
revenues increase by
only $285,868, or 2.34%.

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FY26 G.F. REVENUES OVERVIEW
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9

FY27 G.F. REVENUES SUMMARY
Significant changes

10

Intergovernmental Revenues
• FY27 budgeted receipts of $7,867,344 are $5,246,423 or
200.17% higher than the FY26 Amended Budget as a
result of one-time Save Our Indian River Lagoon sales tax
grant receipts and a State appropriations for the Fire
Station Annex project in FY27, with offsetting state grants
in FY26.
• When one-time receipts are removed from both years,
FY27 is projected to be $80,737 or 7.15% lower than the
FY26 Budget.
8/5/2026

10

5

8/5/2026

FY27 G.F. REVENUES SUMMARY
Significant changes

11

Ad Valorem Taxes
• A net $8,113,686 in receipts is projected for FY27 which is
$247,831 or 3.15% than the FY26 Budget
• Millage rate of 5.5077
o Homesteaded property owners will only experience a
2.96% increase in their IHB tax bill
o A homeowner with a taxable assessment of $546,364
would pay an additional $86.48
8/5/2026

11

FY25 G.F. REVENUES (CONT.)
General Government Taxes
• FY27 budgeted receipts of $1,531,827 are $146,330 or 10.56%
higher than the FY26 Budget, primarily due to projected increases
in Utility Service Taxes and refinements in budgeting for
Communications Service Taxes.
Interest and Other Earnings
• FY27 budgeted receipts of $347,000 are $89,000 or 20.41% lower
than the FY26 Budget, primarily due to FY26 being the last year of
ARPA grant funding (i.e., usually grant receipts are
reimbursements, but the 2021 ARPA program distributed money
up front to eligible entities with all expenditures required to be
completed by December 31, 2026).

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FY27 G.F. EXPENDITURES OVERVIEW
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FY27 G.F. EXPENDITURES (CONT.)
Summary

• FY27 Proposed Budget balanced with $230,896 in contingency
$155,896 City Manager’s contingency
$ 75,000 Public Works contingency for unforeseen capital
projects
• The largest increase in expenditures is budgeted for the
Information Technology Department. The FY27 Proposed
Budget of $795,448 is $210,413 or 35.97% higher than the
FY26 Approved Budget. This increase is primarily due to
consolidating web-based subscription costs across the City into
a single department, higher salaries and wages for existing
personnel, and higher health insurance premiums.

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8/5/2026

FY27 G.F. PROJECTS

$9,265,026 in Capital Projects:
6,346,174 Muck removal ($9.6M in grants) (year 1 of 2 funding)
1,250,000 Fire Station Annex (year 3 of 3-year funding)
300,000 Repl. 75' ladder truck (year 2 of 3-year funding)
242,600 Road milling/repaving
160,000 Repave Gleason Park pathway
101,000 Repl. Police vehicles (two)
100,500 Repl. Fire mobile & portable radios
100,000 Repl. main pavilion at Millennium Beach Park

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8/5/2026

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FY27 G.F. PROJECTS (CONT.)
Capital Projects:
89,677
Repl. body-worn cameras
75,000
Public Works contingency (new)
65,000
Repl. playground unit in NE part of Gleason Park
64,300
Repl. firefighter gear
55,000
School Road (north of Banana River Drive) east
sidewalk (new) - partial TIF funded
54,000
Repl. Police vehicle equipment
30,000
Fire Station renovations
28,000
Repl. Police radios

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8/5/2026

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8/5/2026

FY27 G.F. PROJECTS (CONT.)
Capital Projects:
25,800
Repl. Gleason Park gazebos
25,000
Paving and sidewalk misc. improvements
16,500
Repl. Pool awnings
13,000
Renovate Rec. Ctr. office & front window area (new)
11,000
Repl. ADA pool assist chair
11,000
Repl. Recirculation pump and motor (new)
10,775
Variable frequency drive for pool pump
10,000
Park improvements: fencing & benches

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8/5/2026

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FY27 G.F. PROJECTS (CONT.)
Capital Projects:
10,000
Repl. pool pump
9,000
Repl. pool cell stack (new)
7,900
Vision Zero pedestrian safety improvements (TBD)
6,000
Repl. lifeguard chairs (new)
6,000
License plate reader (recurring costs)
6,000
Repl. restroom door locks at Bicentennial Park (new)
5,000
Repl. pool lane lines
5,000
Repl. network switch

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FY27 G.F. ENDING FUND BALANCE
FY26 is projected to end with a total fund balance of
$13,685,557, a decrease of $1,654,208 or 10.78% from FY25.
The decrease is a result of the use of fund balance (exhausting
the BRRB reserves) to cover the overage in the ARPA-funded
Algonquin Sports Complex expansion project, year two of the
Fire Station Annex project costs, and rolled forward project
expenses from FY25. Offsetting this use of fund balance are
personnel savings and unexpended capital project budgets
(which will be rolled forward into FY27). When the use of fund
balance is removed from the equation, FY26 is projected to end
with a surplus of $74,706 in revenues over expenditures.

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8/5/2026

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FY27 STORMWATER UTILITY OVERVIEW
Revenues
• The FY27 Proposed Budget contains $1,011,884 in total
revenues. Major revenue sources include:
o 426,309 Gross assessments (no increase from FY26)
o -15,000 Discount for early payment
o 600,000 Grant receipts from FY26 completed City
Hall Baffle Box project

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8/5/2026

FY27 STORMWATER UTILITY (CONT.)
Expenditures
10,000 Drainage maintenance:
1,000 Rain barrel rebate program and Waterfront
Buffer Matching Grant program
350,000 Capital improvements
650,884 Reserves (to balance the annual budget and fund
roll-forward projects)
250,000 To be rolled forward from FY26 for capital projects

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FY27 STORMWATER UTILITY (CONT.)
Capital improvement projects
150,000 Big Muddy seawall replacement
100,000 CCTV Inspection of pipes/slip lining of pipes
50,000 Pipe repairs – TBD
50,000 School Road drainage project

24

Roll-forward projects from FY26
75,000 CCTV Inspection of pipes/slip lining of pipes
175,000 School Road drainage project
8/5/2026

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FY27 PERSONNEL OVERVIEW
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FY27 PERSONNEL CHANGES
Proposed for FY27 are 73.84 FTEs, a net decrease of 5.32 FTEs
(6.72% of total staffing) from the FY26 Approved Budget.

26

Previously partially funded positions
• Additional 0.50 FTE full-time City Manager’s Office Communications
Manager position (0.50 FTE was funded in FY26)
• Additional 0.41 FTE part-time Fire Department Maintenance Specialist II
position (3.82 FTEs were funded in FY26)
FY26 mid-year changes reflected in the FY27 Proposed Budget
• A net decrease of 5.0 full-time FTEs in the Police Department (transition
of dispatch services to the Brevard County Sheriff’s Office)
• A net decrease of 1.23 FTE positions in the Fire Department
8/5/2026

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8/5/2026

FY27 INITIATIVES
• Completion of the Algonquin Sports Complex expansion
phase one related projects
• Expanded use of the City’s GIS (historically only used by
stormwater consultant)
• Completion of the comprehensive review of the City’s
Personnel Policies Manual and adoption of a new Employee
Handbook and Administrative Policies
• Expanded communications with residents
• Continued non-local (i.e., grants, state appropriations, etc.)
funding for capital projects

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FUTURE CHALLENGES
• Challenges to the City’s ability to fund desired services
• Property tax reform
• State restrictions on revenue streams
• Unfunded mandates
• Inflation and minimum wage increases
• IHB’s FY27 wage increases are the 4th lowest in Brevard
• Cyber security (staffing and funding)
• Recruitment/retention of volunteer firefighters
• Funding for paid Firefighter/EMT positions
• Stormwater projects
• Need to incorporate analytics in budgetary decision-making

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KEY DATES REMAINING
• Public hearing to adopt the Stormwater Assessment to be
held on Tuesday, August 11, 2026

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• First public hearing and reading of the FY27 Millage rate and
Budget to be held on Thursday, September 03, 2026
• Second public hearing and reading of the FY27 Millage rate
and Budget to be held on Tuesday, September 15, 2026

8/5/2026

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“Staff deals with the how things get done….elected officials deal with
what gets done.” – Mike Conduff, President and CEO of The Elim Group, presenter at the 2021
ICMA Southeastern Conference

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The Leadership Team
is here to answer your questions.

8/5/2026

Ida L. Coffey,
John’s most
demanding boss!

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