Wildwood commissioners will begin reviewing the 2026-27 city budget Monday at the first of three workshops.
The final budget will be adopted after two public hearings in September. The fiscal year begins Oct. 1.
The budget will be developed under the pressure of a property tax referendum on the November ballot that would cut revenue due to increases in the homestead credit.
If the referendum is approved, the city may approve a budget amendment scaling back planned building projects.
Total expenditures will be less than last year’s $280 million due to payments made this year on the city’s $150-million wastewater treatment plant.
The addition of single-family homes in the Villages of Southern Oaks, apartment construction and commercial projects continue to fuel the city’s rapid growth,
The estimated taxable value of Wildwood property will be nearly $10 billion next year, up from $1.6 billion in 2020.
The city expects to collect $27.3 million in property taxes next year, up from $21.9 million, which is about half of the general fund or operating budget revenue
General fund revenue would increase to $52.7 million, up from 45.6 million. Expenditures would rise 9 percent to $34.5 million.
Purchases would include 10 interceptors and three golf carts for the police department, a fuel station canopy for public works and a batwing mower and a 20-foot special events trailer for parks and recreation.
At the workshop, commissioners will discuss whether to keep the current property tax rate of $2.83 per $1,000 assessed valuation, reduce it to $2.75 or to the rolled-back rate of $2.70.
The rolled-back rate is the amount needed to collect the same revenue as the prior year excluding new construction.
In the proposed budget, city employees would receive a 3.8 percent cost-of-living increase and the cost of medical insurance is expected to rise by 10 percent.
The budget calls for cutting five Middleton area crossing guards, a payroll specialist and a technical systems analyst.
Eleven positions would be added, including five police officers and six utilities employees.
If the referendum passes, Wildwood would reduce spending on proposed capital project
Affected projects may include the Martin Theater, the Middleton police substation, Municipal Services Complex expansion, Millennium Park improvements and water line upgrades.
The referendum would increase the Florida property tax homestead exemption to $150,000 on Jan. 1 and to $250,000 the following year with an eventual goal of eliminating property taxes.