Sarasota property owners won't see a millage rate increase next year, even as the city carries $16 million in hurricane recovery costs on its General Fund and works to rebuild reserves drained by the 2024 storm season.

The City Commission voted unanimously Friday, July 31, to set the preliminary maximum operating millage rate for fiscal year 2026-27 at 3.2730 mills, according to a city press release. That's the same rate residents pay now.

"We still need a bigger cushion, but we're well on our way," Mayor Debbie Trice said after the vote, referring to a three-year reserve replenishment plan the Commission launched after Hurricanes Debby, Helene and Milton hit in 2024.

The storms forced the city to spend down reserves below recommended levels. Under the replenishment plan, reserves are expected to reach 17.1% of General Fund expenditures by September 30 — the minimum threshold recommended by the Government Finance Officers Association, equivalent to two months of operations.

Total storm recovery costs across all city funds are estimated at $50 million. The city has submitted required documentation to the federal government and is awaiting reimbursement, though no timeline for that money has been announced.

Where the money goes

The proposed budget includes a $104.4 million Capital Improvement Plan covering hurricane recovery, street resurfacing, neighborhood improvements and accessibility projects. The Sarasota Police Department accounts for more than 53% of General Fund spending, with Parks and Recreation at 14%.

City Manager Karie Friling called the spending plan disciplined and said staff made data-driven decisions to hold operating costs down. All five commissioners supported the flat rate.

The city maintains bond ratings of Aa1 from Moody's Investor Services and AA+ from Fitch Ratings.

What happens next

The preliminary rate will be sent to the Sarasota County Property Appraiser, which will compile proposed millage rates and mail TRIM (Truth in Millage) notices to property owners later this summer.

Residents get a final say at two public hearings before the rate is adopted:

• Tuesday, September 8 at 5:30 p.m., City Hall, 1565 First St.
• Monday, September 21 at 5:30 p.m., City Hall, 1565 First St.