New Smyrna Beach Passes $200 Million Budget

The New Smyrna Beach City Commission passed its FY 2027 budget last week, approving slightly over $200 million for the city budget and just north of $75 million for the utilities budget. The new city budget of $200,737,965 is a 0.6% increase over the previous year’s adopted budget. In order to accommodate this slight increase, the City Commission opted to keep its millage rate flat at 4.673. A report on the budget from city staff indicates next year’s budget will add three new positions. It will also direct $32,269,698 to required reserves and debt obligations, as well as $30,570,612 for capital and infrastructure. New Smyrna Beach Mayor Fred Cleveland was complimentary to Utilities CEO Efren Chavez during Wednesday’s special budget hearing. “This is probably your seventh or eighth budget cycle, so we appreciate your diligence from your rise from CFO to running the entire show,” Cleveland said. “Your steady hands on the controls have been a very big comfort for the city and that your rates remain low is the envy of Florida.” Debt Service Millage Rate Increases One rate increase was approved by the City Commission. The debt service millage rate rose by 52%, increasing to 0.1695 from a previous 0.1115. The debt service requirement for FY 2027 is $1,275,000. With the new rate, the city’s estimated tax levy is $1,342,329 which amounts to $1,275,212 in revenue at a 95% collection rate. City staff attribute this raise to not using debt service fund reserves, which contributed approximately $640,000 in the last budget cycle on a one-time basis. Additionally, the city is taking on debt service for a $5.5 million general obligation bond to acquire conservation land in the Turnbull Creek watershed. Perrine, Martin Discuss Previous No Vote About halfway through the special meeting, commissioners Vali Perrine and Lisa Martin had a brief contentious discussion. Perrine took Martin to task over a vote earlier in the budget cycle against funding the resident-approved Turnbull Creek general obligation bond. “I have reread and reconsidered this item, so my vote will be yes on this item and I am sorry that you couldn’t wait for that,” Martin said after Perrine brought up her change of opinion since the first reading. “Once you make a decision, you never go back, do more research, and change your position. Is that correct?” “I’m asking for two weeks ago, which you didn’t explain that one either,” Perrine responded. She then accused Martin of getting ‘angry’ over her observation, as well as allegedly summoning news media to cover her unexpected no vote at a previous meeting. Martin resisted these accusations, saying she was unaware the media would be in attendance at the previous meeting. Perrine then circled back to Martin’s change of vote. “We have discussed this for months and to be blindsided with nos without an explanation…I would just love an explanation.” The motion ultimately passed unanimously.