Loading...
HomeMy WebLinkAbout07/08/2026 (2)Indian River County, Florida 3��vERCo Budget Workshop s ,e Meeting Minutes - Final OR1DP Board of County Commissioners Deryl Loar, District 4, Chairman Laura Moss, District 5, Vice Chairman Susan Adams, District I Joseph Flescher, District 2 Joseph H. Earman, District 3 John A. Titkanich, Jr., County Administrator Jennifer W. Shuler, County Attorney Ryan L. Butler, Clerk of the Circuit Court and Comptroller Shauna James, Deputy Clerk Wednesday, July 8, 2026 9:00 AM 1. Call to Order Present: 5 Chairman Deryl Loar Vice Chairman Laura Moss Commissioner Susan Adams Commissioner Joseph Flescher Commissioner Joe Earman Indian River County Administration Complex 1801 27th Street Vero Beach, Florida 32960 indianriver.gov 2. A Moment of Silent Reflection for First Responders and Members of the Armed Forces Followed by the Invocation 3. Pledge of Allegiance Indian River County, Florida Page 1 4. General Overview Session County Administrator John Titkanich provided an overview before presenting the recommended FY26/27 budget. He explained that Amendment 3 had generated misconceptions about the County's finances, making it important to clarify key facts. He noted that the recommended $614.8 million budget reflected a disciplined, forward -looking approach during a period of economic uncertainty and potential statewide tax changes. Although the budget was 13.6 percent lower than the current midyear revised budget, it represented a modest 2.7 percent increase over last year and remained below the May Consumer Price Index (CPI). Administrator Titkanich emphasized the County's commitment to prudent fiscal management. Despite rising operational costs, the County had maintained millage rates for the General Fund, M.S.T.U., and Emergency Services District, with the only increase tied to the 2024 Land Acquisition Bond. He highlighted priorities including public safety, honoring the settlement agreement with the Sheriff's Office, and assuming full responsibility for Animal Services and Mental Health Court operations. He explained that targeted staffing adjustments, reduced but continued investment in training, and careful capital project review were part of the County's overall strategy. Several major funds showed reductions due to lower transfers, cost controls, and project timelines. Looking ahead, he stated that the County was preparing for slowing economic growth, shifting real estate conditions, and potential tax restructuring. Administrator Titkanich also addressed the Constitutional Amendment for the proposed Property Tax Reform, noting that it could significantly reduce future ad valorem revenue and create challenges in sustaining core services. In anticipation, the County formed an Internal Tax Reform Advisory Committee to evaluate operations and develop long-term strategies. He concluded that this preparation would be critical, as future budget processes could be especially difficult, underscoring the need for thoughtful planning and informed decision -making. In support of this overview, he presented slides explaining the definition of a fund, the County's list of funds and fund types, revenues by source, the distribution of collected property taxes, and the origins and utilization of the General Revenue Fund. Administrator Titkanich stated that the current budget initiatives included implementing zero -based budgeting, holding quarterly budget meetings, monitoring permit history, exploring options to diversify revenue, and evaluating potential reduction scenarios of 5%, 10%, and 15%. He highlighted several major budget impacts, noting a countywide tax roll increase of 6.8% and 7.0% in unincorporated areas, a recommended $4 million increase in Sheriff funding compared to the mid -year settlement, and a retirement rate increase of $1,786,426, or 4.9%, including Constitutionals. Additionally, he reported a substantial rise in Other Post -Employment Benefits (OPEB) contributions totaling $1,535,019, or a 288.6% increase, and a Health Insurance contribution increase of $6,148,830, or 32.0%, both of which include Constitutionals. 5. General Fund 5.A. GENERAL FUND 001-101 BOARD OF COUNTY COMMISSIONERS OPERATIONS 001-102 COUNTY ATTORNEY 001-103 GIS TRANSFER 001-107 COMMUNICATIONS/EMERGENCY SERVICE 001-109 MAIN LIBRARY 001-112 NORTH COUNTY LIBRARY 001-113 BRACKETT LIBRARY Indian River County, Florida Page 2 001-118 IRC SOIL AND WATER CONSERVATION 001-119 LAW LIBRARY 001-122 MENTAL HEALTH COURT 001-201 ADMINISTRATOR - OPERATIONS 001-202 COMMUNITY SERVICES 001-203 HUMAN RESOURCES 001-204 PLANNING & DEVELOPMENT 001-206 VETERANS SERVICE 001-208 EMERGENCY MANAGEMENT 001-210 PARKS 001-211 HUMAN SERVICES 001-212 AG EXTENSION 001-215 PARKS - CONSERVATION LANDS 001-216 PROCUREMENT 001-220 FACILITIES MANAGEMENT 001-229 OFFICE OF MANAGEMENT AND BUDGET 001-230 BUILDING & FACILITIES SERVICES 001-237 FPL GRANT EXPENDITURES 001-238 EMERGENCY BASE GRANT 001-241 IS/TELECOM TRANSFER 001-246 INSURANCE PREMIUMS 001-249 ANIMAL SERVICES 001-250 COUNTY ANIMAL CONTROL 001-251 MAILROOM/SWITCHBOARD 001-283 INDIAN RIVER LAGOON Administrator Titkanich reported increases of $692,753 in State Mandated Retirement Contributions, $815,546 (291.6%) in OPEB costs, and $3,240,166 (34.4%) in health insurance, with BCC position costs totaling $673,836 and Constitutional Officers adding 14.35 full-time employees. Most departmental increases, particularly in Communications and Emergency Services, Libraries, the County Attorney's Office, and Community Services, were driven by salary and benefit adjustments, while GIS and Soil & Water Conservation saw slight reductions. He noted that Mental Health Court operations would shift fully to County management, and that Emergency Management and Parks had decreased due to completed grants. Human Services increased largely because of personnel costs, and the Extension Office had higher expenses tied to its University of Florida agreement and relocation work. Conservation Lands decreased following completion of prior -year projects. Facilities Management saw some cost increases, though its overall budget declined due to operational savings. Office of Management and Budget decreased due to reduced travel and the final payment of the Treasured Tomorrow plan, while Building and Facilities increased mainly due to salaries, benefits, and insurance. Telecom costs and insurance premiums declined after project completion. He added that the County was preparing to assume Animal Services operations in November 2026, and that Mail Room costs had risen due to higher personnel, postage, and printing expenses. Lagoon -related expenses decreased after several environmental projects concluded. He stated that the General Fund budget for BCC departments remained unchanged at $37,660,056 for FY 26/27. Chairman Loar noted that many jurisdictions did not fund OPEB and commended the County for doing so. Indian River County, Florida Page 3 6. Constitutional Officers 6.A. CONSTITUTIONAL OFFICERS 001-300 001-400 001-500 001-600 001-700 001-114 CLERK OF CIRCUIT COURT RYAN L. BUTLER TAX COLLECTOR CAROLE JEAN JORDAN PROPERTY APPRAISER WESLEY DAVIS SHERIFF ERIC FLOWERS SUPERVISOR OF ELECTIONS LESLIE R. SWAN VALUE ADJUSTMENT BOARD County Administrator Titkanich presented the budget for the Constitutional Officers, indicating an overall budget increase of $8,728,228 (8.5%). The current budget was $102,681,962, bringing the current budget total to $111,410,190. A significant portion of this increase was attributed to the $7.5 million settlement agreement with the Sheriff. This included $4 million in new funding for FY 26/27, along with an additional $3.5 million drawn from cash reserves. The Clerk of the Court experienced a modest $84,492 (5.4%) budget increase. The Tax Collector's budget was still pending, with completion expected by August. The Property Appraiser proposed a $209,706 (3.7%) budget increase. The Sheriffs budget was set to increase by $7,500,000 (8.7%). Furthermore, the budget allocated $650,000 for inmate medical expenses. This allocation, introduced the previous year, continued in response to the Sheriffs request, in compliance with the State Statute mandating funding for these expenses. The Sheriff's electrical expenses of $780,000 were also included in this budget. The Supervisor of Elections' budget was set to increase by $87,098 (3.6%). Additionally, the Value Adjustment Board budget increased by $16,600 (23.7%). Property Appraiser Wesley Davis said his team aimed to support the Commission during property tax reform discussions. He noted a required $70,000—$75,000 expense for aerial imagery and emphasized that his office had maintained the same staffing level since 2010. He expressed concern about rising insurance costs for taxpayers and stated that his budget met Department of Revenue standards. He added that vacant positions would result in a year-end refund. Supervisor of Elections Leslie Swan thanked the County for replacing her office's old carpet and approving a new vehicle. Her budget included relocating the server room and replacing an aging firewall. The initial 1.7% increase rose to 3.6% after health insurance adjustments. She closed by thanking the Board for its support. Indian River County Sheriff Chief Financial Officer Aimee Cooper expressed gratitude on behalf of the department, thanking everyone for their support. Sheriff Eric Flowers explained that although the settlement agreement guaranteed a $4 million increase for FY 26/27, rising countywide healthcare costs strained his budget. After deducting Mental Health Court expenses that the County would assume on October 1, 2026, he requested a total of $4,570,926, which exceeded the settlement's terms. County Attorney Jennifer Shuler underscored the legal constraints of the Sheriffs settlement: the settlement agreement was exclusive, could only be amended in writing, and prohibited further budget increases except in emergencies. She restated the agreement's specifics —a $3.5 million amendment for FY 25/26 and a $4 million increase for FY 26/27. During discussion, the Board made its position clear. Commissioner Adams firmly opposed Indian River County, Florida Page 4 exceeding the agreement, noting it was negotiated and signed with known risks, and that the • County had already absorbed major costs such as Inmate Medical Care and the upcoming transition of Mental Health Court operations. Chairman Loar also resisted modifying a settlement crafted to resolve litigation, emphasizing the importance of honoring its terms. Vice Chairman Moss suggested placing the issue on a future agenda for further review, while Commissioner Earman supported giving staff and the Sheriff additional time to explore options but did not endorse exceeding the agreement. Administrator Titkanich explained that granting the Sheriff's request —an additional $570,926 beyond the settled amount —would require the Board to agree in principle to pursuing a formal amendment, which would then return for approval in August. The Board acknowledged that no increase beyond the $4 million could occur without legally amending the settlement. Ms. Cooper noted the Sheriffs Office had already deferred priority needs to stay within the agreed budget and asked about amendment limits. Chairman Loar clarified that while increases above the settlement required formal modification, the Sheriff could still submit standard budget amendment requests during FY 26/27. The Board reached consensus to allow budget amendment requests from the Sheriff for FY 26/27 and agreed to set a not -to -exceed limit of $570,926 for those amendments. 7. Municipal Service Taxing Unit (M.S.T.U.) 7.A. M.S.T.0 004-104 004-105 004-108 004-115 004-116 004-161 004-204 004-205 004-207 004-231 004-400 Fund NORTH COUNTY AQUATIC CENTER GIFFORD AQUATIC CENTER RECREATION INTERGENERATIONAL FACILITY BEACH PARKS SHOOTING RANGE PLANNING AND DEVELOPMENT COUNTY PLANNING CODE ENFORCEMENT NATURAL RESOURCES TAX COLLECTOR County Administrator Titkanich provided an overview of the Municipal Service Taxing Unit (M.S.T.U.) budget, noting a projected 7% increase in ad valorem revenue, generating about $1,363,372 at a 95% collection rate. The millage rate remained 1.1506. Transfers out totaled $43,983,162, up $859,565 (2%), largely due to Sheriffs services in unincorporated areas. The OPEB adjustment increased by $19,169 (191.1%) because of higher health insurance costs. He reviewed departmental changes within the M.S.T.U. fund. The North County Aquatic Center showed a $262,453 (14%) decrease after last year's rehabilitation, while costs rose at the Gifford Aquatic Center ($14,176; 1.6%), Recreation ($37,337; 2.9%), and the Intergenerational Center ($3,288; 0.03%) rose due to insurance increases. Beach Parks increased $107,674 (8%) from Simulator Grant and shed expenditures. The Shooting Range increased $28,416 (2.6%) for salaries, benefits, and new equipment. Indian River County, Florida Page 5 Planning and Development decreased $18,846 (3.2%), reflecting the phase -out of office renovations, position eliminations, and the completion of last year's Oslo Road analysis. Code Enforcement rollover costs also ended. Natural Resources decreased $2,901 (0.05%) after completing environmental studies. The Tax Collector's budget was estimated to rise 10%, pending final numbers. Overall, the M.S.T.U. budget totaled $13,134,658, with a proposed decrease to $12,310,546, a reduction of $824,112 (6.3%). Administrator Titkanich emphasized the need for careful evaluation of M.S.T.U. expenses going forward. 8. Transportation Fund 8.A. TRANSPORTATION FUND 111-214 ROAD AND BRIDGE 111-243 PUBLIC WORKS 111-244 COUNTY ENGINEERING 111-245 TRAFFIC ENGINEERING 111-281 STORMWATER County Administrator Titkanich reported a projected $49,000 (1.8%) increase in gas tax revenue and a $1,632,347 (7.8%) decrease in General Fund transfers due to prior -year projects and equipment purchases. Eliminating three positions saved $413,055, and Road and Bridge funding fell $1,101,969 (7.8%). Public Works saw a major reduction of $930,864 (57.5%) from the completed Americans with Disabilities Act (ADA) Implementation Plan; funding for drainage improvements had been removed; document scanning and renovation work were completed. County Engineering decreased $61,711 (1.3%), Traffic Engineering decreased $490,290 (11%), and Stormwater Management dropped $224,563 (11.3%) due to prior -year maintenance and equipment costs. Overall, the Transportation Fund budget declined from $26,948,106 to $24,138,709, a reduction of $2,809,397 (10.4%). 9. Emergency Services District 9.A. EMERGENCY SERVICES DISTRICT 114-120 FIRE RESCUE 114-240 LIFE SAFETY County Administrator Titkanich presented the Emergency Services District budget, noting a 6.7% increase in the ad valorem tax roll, generating $3,875,910 at the current millage rate of 2.3531, which he recommended keeping. The budget included major increases of $578,224 (324%) in OPEB and $1,470,107 (35.3%) in fire department health insurance. The capital budget dropped $14,091,621 (78.1%) to $3,942,174, and eliminating one position saved $165,634. General and administrative costs rose due to salaries, benefits, and automotive insurance, though lower insurance rates and completed roof projects helped offset some expenses. Additional changes included higher GIS and equipment costs for the State Forest Service and reduced life safety funding. IT service charge adjustments resulted in a net impact of $260,644. He recommended decreasing the Emergency Services District budget from $88,598,048 to $78,839,816 (11%). 10. Non -Departmental Indian River County, Florida Page 6 10.A. STATE AGENCIES 001-106 NEW HORIZONS 001-106 STATE HEALTH DEPARTMENT 001-110 TREASURE COAST REGIONAL PLANNING COUNCIL 001-110 IR LAGOON NATIONAL ESTUARY PROGRAM COUNCIL 001-110 DEPT. OF JUVENILE JUSTICE 001-111 MEDICAID 001-252 ENVIRONMENTAL CONTROL BOARD 001-901 CIRCUIT COURT ADMINISTRATION 001-901 GUARDIAN AD LITEM 001-903 VICTIM ASSISTANCE PROGRAM 001-903 STATE ATTORNEY 001-904 PUBLIC DEFENDER 001-907 MEDICAL EXAMINER County Administrator Titkanich presented the budget recommendations for state agencies, beginning with New Horizons. After meeting with the CEO, he recommended maintaining flat funding at $450,000 rather than the $550,000 requested, given fiscal challenges. The Department of Juvenile Justice (DJJ) had not yet submitted its budget request, which would require a future budget amendment once finalized. For planning purposes, level funding of $785,860 was programmed. Medicaid costs increased by $58,730, reflecting a state -mandated adjustment. The State Health Department budget increased by $25,893 due to state -mandated salary changes related to public health functions; overall, funding remained flat. Membership dues for the Treasure Coast Regional Planning Council increased by $854 (1.2%) based on population growth. Funding for the National Estuary Program Council remained level. For Circuit Court expenses, a $196,223 (15.6%) reduction resulted from the County's assumption of Mental Health Court costs. Additional adjustments included decreases of $2,649 (3.9%) for the Guardian ad Litem program and $8,162 (7.2%) for the Public Defender. The Victim Assistance Program increased by $1,187 (6.3%) due to its transition away from the State Attorney's Office. The Medical Examiner's budget decreased by $28,288 (2.6%) due to Interlocal Agreement factors, including autopsy counts, death rates, and population —another county's increased caseload shifted costs downward this year. Overall, the recommended funding for state agencies totaled $6,923,474, down from $7,058,311, reflecting a reduction of $134,834 (1.9%). Administrator Titkanich noted that DJJ funding may need to be revisited once their final request was received. Health Department Administrator Miranda Hawker thanked the Commissioners and County Administrator for their continued support of the Health Department. She acknowledged the significant needs within the community and expressed appreciation for their support, especially during a difficult budget year. Indian River County, Florida Page 7 10.B. NON -DEPARTMENTAL 001-110 ECONOMIC DEVELOPMENT DIVISION 001-128 CHILDREN'S SERVICES 001-137 SEBASTIAN COMMUNITY REDEVELOPMENT AREA 001-137 FELLSMERE COMMUNITY REDEVELOPMENT AREA County Administrator Titkanich summarized the Economic Development Division budget, noting it remained essentially flat with a minor decrease of $85. He reported that the Children's Services Grant, approved by the Board on March 24, 2026, totaled $3,778,838. This reflected an increase of $297,071 (8.5%), funded through the General Fund via an eighth -mill allocation. He noted that future property tax reform could potentially impact this service. Administrator Titkanich reviewed the Community Redevelopment Agencies (CRAs). For the Sebastian CRA, rising property values resulted in a $10,108 (3%) increase in tax increment funding. For the Fellsmere CRA, entering its third year in the expanded district, increased property value appreciation generated an additional $32,210 (26.9%); he noted that the percentage increase appeared larger due to the relatively small base amount of $119,970. Chairman Loar and Administrator Titkanich discussed the potential sunsetting of CRAs. Administrator Titkanich noted that legislation from 2019 included sunset provisions, but governing bodies could extend CRAs with the necessary votes. He highlighted that CRAs focus on areas with blight or poor infrastructure, helping protect the County's long-term revenues. Funding for CRAs comes from tax -increment financing, in which increased property values generate additional tax revenue for redevelopment. The Sebastian Septic -to -Sewer project was mentioned as an example of a current collaborative effort. 11. Non -Profit Organizations 11.A. NON-PROFIT ORGANIZATIONS 001-110 MENTAL HEALTH ASSOCIATION 001-110 UNITED AGAINST POVERTY (fka HARVEST FOOD) 001-110 211 PALM BEACH/TREASURE COAST 001-110 CTC-SRA-SENIOR SERVICES County Administrator Titkanich recommended maintaining level funding for all nonprofit agencies. This included the Mental Health Association, United Against Poverty, 211 Palm Beach/Treasure Coast, and Senior Resource Association (CTC/SRA) senior services programs. 12. Quasi Non -Profit Organizations 12.A. QUASI NON-PROFIT ORGANIZATIONS 001-206 VETERANS COUNCIL OF INDIAN RIVER COUNTY, INC. 001-110 COMMUNITY TRANSPORTATION COORDINATOR (SRA) 001-110 COMMUNITY TRANSPORTATION COORD. GRANTS (SRA) 001-110 GIFFORD YOUTH ACHIEVEMENT CENTER, INC. 001-110 PROGRESSIVE CIVIC LEAGUE OF GIFFORD 001-110 HUMANE SOCIETY OF VERO BEACH, FL 001-110 TREASURE COAST HOMELESS SERVICES COUNCIL, INC. County Administrator Titkanich presented the Quasi —Non -Profit Organizations budget amendment. He noted a $231,413 (69%) reduction for the Humane Society because the County Indian River County, Florida Page 8 would assume full Animal Control and Animal Services operations in November 2027. Funding for other nonprofits remained at the recommended level. He reported that Community Transportation Coordinator (CTC) Grants for the Senior Resource Association (SRA) totaled $10,523,655, reflecting a full reset of grant funding from the prior year. SRA's CTC budget request exceeded the recommended $1,874,557 by about $376,000. After reviewing staffing options that reduced the gap by $168,000, only $28,000 remained unresolved. He asked the Board to allow staff to continue working with SRA President and CEO Karen Deigl to finalize a solution before the first budget hearing. Ms. Deigl stated that SRA required $2,250,618 to maintain current transit service, noting fuel costs had risen 45% and that the $800,000 annual Service Development Grant would end midyear. She offered an alternative: fund SRA at the recommended level and address any shortfall through a midyear budget amendment. The Board agreed, stating they did not want any reduction in transit service hours or days. 13. Non -Ad Valorem Assessment Charges [Clerk's Note: Item 13 to be discussed with Item 15] 14. Streetlighting Districts 14.A. STR 179 180 181 182 183 184 186 188 189 190 191 192 193 194 195 196 197 198 199 EETLIGHTING DISTRICTS OCEANSIDE OSLO PARK GIFFORD LAURELWOOD ROCKRIDGE VERO HIGHLANDS PORPOISE POINT LAUREL COURT TIERRA LINDA VERO SHORES IXORA PARK ROYAL POINCIANA ROSELAND ROAD WHISPERING PINES MOORINGS WALKER'S GLEN GLENDALE LAKES FLORALTON BEACH WEST WABASSO County Administrator Titkanich reported that all Street Lighting District assessment rates would remain the same, except for Ixora Park. Due to rising electricity costs, the assessment for Ixora Park would increase from $32 per parcel per acre to $35 per parcel per acre. 15. Other M.S.B.U./Assessments 15.A. OTHER M.S.B.U./ASSESSMENTS 171 EAST GIFFORD STORMWATER M.S.B.U. 185 VERO LAKE ESTATES M.S.B.U. Indian River County, Florida Page 9 Other Assessments RAIN TREE CORNERS CULVERT ASSESSMENT WATER'S EDGE CULVERT ASSESSMENT NORTH COUNTY WATER ASSESSMENT UNIVERSAL COLLECTION ASSESSMENT County Administrator Titkanich presented the remaining M.S.B.U. assessments. Vero Lake Estates stayed at $50 and East Gifford Stormwater at $10. The new Raintree Corners Culvert assessment applied to 16 parcels with a 10 -year payback at $2,927.93, while Water's Edge decreased by $77.14 after true -up to actual costs. He recommended discontinuing County support for culvert -related M.S.B.U.s, noting challenges with fronting private infrastructure costs and later recovering them through assessments. This applied only to Raintree Corners and Water's Edge. The North County Water Assessment decreased by $7.44 to $275.78 in year four of its ten-year schedule. Solid Waste Disposal District assessments remained flat: $125.06 for residential, $79.12 for commercial, and $46.62 for readiness -to -use. The Universal Collection rate increased from $181.70 to $183.92, a $2.22 rise tied to the waste hauler's CPI adjustment. As a result, residents would pay an additional $2.22 in the next fiscal year. 16. Enterprise Funds 16.A. ENTERPI 411-217 411-255 418-221 418-232 418-236 441-233 471-218 471-219 471-235 471-257 471-265 471-268 471-269 471-282 471-292 474 475 tISE FUNDS SWDD - SANITARY LANDFILL SWDD - RECYCLING GOLF COURSE - OPERATIONS GOLF COURSE - FOOD & BEVERAGE GOLF COURSE - CLUBHOUSE BUILDING DEPARTMENT UTILITIES - WASTEWATER TREATMENT UTILITIES - WATER PRODUCTION UTILITIES - GENERAL & ENGINEERING UTILITIES - SLUDGE OPERATIONS UTILITIES - CUSTOMER SERVICE UTILITIES - WASTEWATER COLLECTION UTILITIES - WATER DISTRIBUTION UTILITIES - OSPREY MARSH UTILITIES - SPOONBILL MARSH UTILITY WATER IMPACT FEES UTILITY SEWER IMPACT FEES Office of Management and Budget Director Kristin Daniels presented the Enterprise Funds, beginning with the Solid Waste Disposal District. Its proposed budget was $44,356,119, an increase of $1,967,510 (4.6%), driven mainly by rising recycling, transportation, and operating contract costs for convenience centers and landfills. Indian River County, Florida Page 10 She outlined the Sandridge Golf Course budget, proposed at $8,059,138, an increase of $2,861,325 (55%), largely due to the opening of the new clubhouse restaurant and banquet facility. Ms. Daniels reviewed the Utilities budget, which was proposed at $66,659,344, a decrease of $1,847,863 (2.7%). Water Impact Fees were projected at $1,682,309, up $806,053 (92%), and Sewer Impact Fees at $1,816,500, up $706,693 (63.7%). She attributed both increases to yearly fluctuations in capital projects approved within the Capital Improvement Element (CIE). Commissioner Adams highlighted that those funds were generated and spent by the respective departments. She noted that, like many businesses, those funds did not come from taxpayer dollars. Ms. Daniels confirmed this by stating that the County could not allocate any revenue generated by these enterprises to the General Fund, or vice versa. 17. Internal Service Funds 17.A. INTERNAL SERVICE FUNDS 501 FLEET MANAGEMENT 502 RISK MANAGEMENT (SELF INSURANCE) 504 EMPLOYEE HEALTH INSURANCE 505-103 IT - GEOGRAPHIC INFORMATION SYSTEMS 505-241 IT - INFORMATION SYSTEMS & TELECOMMUNICATIONS Office of Management and Budget Director Kristin Daniels presented the proposed budgets for the Internal Service Fund. The proposed budget for Fleet Management was $4,802,581, reflecting a slight increase of $14,143 (0.3%). She explained that this increase was primarily intended to cover additional health insurance costs. Ms. Daniels reviewed Risk Management, which oversaw the County's self-insurance fund. The proposed budget for this fund was $9,028,550, representing a decrease of $1,514,590 (14.4%). This reduction was largely due to a decrease in property and casualty premiums of about $900,000, which the Board approved on April 21, 2026. She also noted that this was the first year the budget reflected the Sheriff's Office obtaining its own Workers' Compensation coverage. Ms. Daniels continued with the Employee Health Insurance Fund. The proposed budget was $39,500,203, an increase of $4,297,473 (12.2%). She stated that the increased costs were driven by rising medical and pharmacy claims, as well as escalating expenses associated with the employee health clinic, as previously presented to the Board of County Commissioners on June 16, 2026. Chairman Loar asked about the potential impact of the health insurance items the Board approved in June and whether the budget could remain flat next year. Ms. Daniels responded that maintaining a flat budget remained the goal; however, she cautioned that unforeseen high -cost claims could occur and affect that objective. She noted that this year's budget had already been influenced by similar unexpected expenses. Ms. Daniels presented the proposed Information Technology budget, totaling $6,933,579. This amount represented a decrease of $260,195 (3.6%), resulting from reductions in other professional services and software expenses. Indian River County, Florida Page 11 18. Miscellaneous Funds 18.A. MISCELLANEOUS FUNDS 102 TRAFFIC IMPACT FEES 103 ADDITIONAL IMPACT FEES 104 TRAFFIC IMPACT FEES 2020 108 RENTAL ASSISTANCE 109 SECONDARY ROAD CONSTRUCTION 112 SPECIAL LAW ENFORCEMENT 117 TREE ORDINANCE FINES 119 TOURIST DEVELOPMENT FUND 120 911 SURCHARGE 121 DRUG ABUSE FUND 123 IRCLHAP/SHIP 124 METRO PLAN ORGANIZATION 127 NATIVE UPLANDS ACQUISITION FUND 128 COASTAL ENGINEERING 130 NEIGHBORHOOD STABILIZATION PLAN 3 133 FLORIDA BOATING IMPROVEMENT PROGRAM 135 DISABLED ACCESS PROGRAMS 137 TRAFFIC EDUCATION PROGRAM 138 ARP - AMERICAN RESCUE PLAN 139 CARES ACT & COVID-19 RESPONSE 140 COURT FACILITY SURCHARGE FUND 141 ADDITIONAL COURT COSTS FUND 142 COURT TECHNOLOGY FUND 145 LAND ACQUISITION SERIES 2006 147 OPIOID SETTLEMENT FUNDS 155 LAND ACQUISITION SERIES 2024 Office of Management and Budget Director Kristin Daniels presented the proposed budget for the Miscellaneous Funds. Fund 102, Traffic Impact Fees, had a proposed budget of zero, a reduction of $753,133, reflecting the discontinuation of traffic impact fee collections and the planned spend -down of remaining district balances. Fund 103, Additional Impact Fees, had a proposed budget of $1,483,615, a decrease of $7,325,776. Ongoing projects were funded through a budget amendment once rollover amounts were finalized. The $1.48 million represented the amount approved in year two of the Capital Improvement Element (CIE), and any portion of the current year's $8,809,391 not completed would be added to next year's total. Fund 104, Traffic Impact Fees 2020, had a proposed budget of $7,050,000, a decrease of $9,202,409. These active traffic impact fee districts had been consolidated into two areas, and annual budgets fluctuated based on CIE projects. Fund 108, Rental Assistance, had a proposed budget of $3,738,830, a decrease of $254,500, reflecting the anticipated Section 8 grant revenue for the next fiscal year. Fund 109, Secondary Roads Construction (Gas Tax Fund), had a proposed budget of $9,585,973, Indian River County, Florida Page 12 a decrease of $3,995,571, with most funding allocated to CIE projects, resulting in significant year-to-year variation. Fund 112, Special Law Enforcement, had a proposed budget of zero. The fund was populated through a budget amendment once collections were finalized, and revenue was then distributed to the Sheriff. Fund 117, Tree Ordinance Fine Fund, had a proposed budget of $280,000, a reduction of $105,000. Halstrom, South Prong Lagoon, and Cypress Bend had been included in last year's CIE. Fund 119, Tourist Development, had a proposed budget of $2,361,451, an increase of $112,816, reflecting the Tourist Development Council's recommended awards approved by the Board on June 16, 2026. Fund 120, 911 Surcharge Fund, had a proposed budget of $1,218,128, a reduction of $1,660,675, due to the removal of NexGen 911 software previously funded in the current fiscal year. Fund 121, Drug Abuse Fund, had a proposed budget of $90,000, an increase of $15,000, based on the 19th Judicial Circuit's request for anticipated expenses. Fund 123, SHIP Fund, had a proposed budget of $1,734,196, a decrease of $1,764,518, reflecting the County's planned SHIP allocation for next year. Fund 124, Metropolitan Planning Organization (MPO), had a proposed budget of $719,132, a decrease of $93,068, with one position eliminated. Fund 127, Native Uplands Acquisition, had a proposed budget of $206,000, an increase of $106,000 to support invasive species control and firebreaks. Fund 128, Coastal Engineering, had a proposed budget of $3,351,637, a decrease of $5,851,843, with no beach renourishment projects planned next year. The current fiscal year included $6 million for Sector 5 renourishment. Fund 130, Neighborhood Stabilization Program 3, remained level at $10,000. Fund 133, Florida Boating Improvement Program, had a proposed budget of $140,000, a decrease of $311,300. The current year included $255,000 for the anchoring limitation update, which would not recur. Fund 135, Disabled Access Program, had a proposed budget of zero, a decrease of $34,638, with the remaining balance scheduled for expenditure this year to complete an ADA accessibility study. Fund 137, Dori Slosberg Driver Education Safety Act Fund, had a proposed budget of $49,000, with level funding based on the Indian River County School District's Driver Education Program request. Fund 138, American Rescue Plan Act (ARP) Funds, had a proposed budget of zero, with all funds scheduled to be spent by year-end. Indian River County, Florida Page 13 Fund 139, CARES Act Fund, had a proposed budget of zero, a reduction of $83,175, representing the remaining balance. Fund 140, Court Facility Surcharge Fund, had a proposed budget of $150,458, an increase of $29,634, supporting facility -related expenses for the State Attorney, Guardian ad Litem, Public Defender, and Court Administration. Fund 141, Additional Court Costs Fund, had level funding at $95,000, supporting the Access to Justice Program, Teen Court, and Court Administration. Fund 142, Court Technology Fund, had a proposed budget of $325,000, an increase of $25,000, supporting IT needs for the Guardian ad Litem, State Attorney, and Public Defender. The General Fund contributed an additional $650,291 for unfunded requests. Fund 145, Land Acquisition Series Fund, had a proposed budget of zero. The fund originated from Land Acquisition Bonds issued in 2006, with remaining reimbursement balances scheduled for expenditure in the current fiscal year. Fund 147, Opioid Settlement Fund, had a proposed budget of zero, a decrease of $512,994, with expenditures processed via budget amendment as annual settlement proceeds were received. Fund 155, Land Acquisition Bond Series 2024, had $24,610,154 budgeted in the current fiscal year, with a proposed budget of zero for next year. After fiscal year close, the remaining balance, following land purchases underway, would be rolled forward, providing the exact amount available for the next year. Vice Chairman Moss asked how state -mandated court cost funds were handled when expenses exceeded available revenue. Ms. Daniels explained that courthouse fees helped offset agency budgets but did not cover all costs, requiring the General Fund to make up the difference, and noted that Interlocal Agreements prevented counties from reducing funding independently. Vice Chairman Moss questioned why excess costs could not be billed back to the State. County Attorney Shuler stated she could provide an analysis of required versus voluntary funding. Vice Chairman Moss requested a clear list of mandated obligations. Ms. Daniels agreed to prepare the information. 19. Debt Service/Capital Projects 19.A. DEBT SERVICE/CAPITAL PROJECTS 204 DODGER BONDS 255 LAND ACQUSITION BONDS 2024 308 JACKIE ROBINSON TRAINING COMPLEX (fka CAPITAL RESERVE FUND) 315 OPTIONAL ONE -CENT SALES TAX Office of Management and Budget Director Kristin Daniels presented the proposed budget for Debt Service and Capital Projects, beginning with the Dodger Bonds. The proposed budget was $500,000. She explained that this amount represented the annual debt service for the Jackie Robinson Training Complex property. The debt service would expire in 2031, but the $500,000 Indian River County, Florida Page 14 payment was funded each year through the County's spring training facility agreement with the State of Florida. Since the facility continued to function in a similar manner, the County remained eligible to receive the annual $500,000 from the state, which fully covered the debt service, with no County funds required. Fund 255, Land Acquisition Bond Series 2024, had a proposed budget of $3,982,041, an increase of $2,138,609. The increase reflected the County's issuance of the remaining $27 million in voter -approved Land Acquisition Bonds, which closed on July 2, 2026. Fund 308, Jackie Robinson Training Complex (formerly Dodgertown Capital Reserve), had a proposed budget of $434,112, a decrease of $558,801. The reduction was due to the rollover of unspent FY 25/26 funds. The proposed amount covered capital and maintenance expenses, including the annual CPI adjustment required under the facility lease agreement with Major League Baseball. Fund 315, Optional One Cent Sales Tax, had a proposed budget of $51,635,877, a decrease of $34,896,774. The fluctuation reflected capital project scheduling and year-end rollovers. The FY 26/27 proposal represented the projects included in the Capital Improvement Element previously approved by the Board. 20. Aggregate Millage 20.A. AGGREGATE MILLAGE RATE IS 6.1155 County Administrator Titkanich stated that the current rate was 6.1158, the rollback rate was 5.8554, and the proposed rate was 6.1155. The difference from rollback was 0.2601. 21. Recap — Total Proposed Budget and Proposed Millage Rates 21.A. RECAP — TOTAL PROPOSED BUDGET AND PROPOSED MILLAGE RATES JOHN A. TITKANICH, JR., COUNTY ADMINISTRATOR In closing, County Administrator Titkanich summarized the overall proposed budget for FY 26/27. The total proposed budget was $614,789,330, a decrease of $96,944,702. For the General Fund, the proposed millage was 3.5475, which was 4.62% above rollback. The proposed General Fund budget was $172,434,473, an increase of $984,119. For the Municipal Service Taxing Unit (M.S.T.U.), the proposed millage was 1.1506, which was 4.26% above rollback. The proposed M.S.T.U. budget was $57,189,815, a decrease of $733,865. For the Transportation Fund, the proposed budget was $25,610,535, a decrease of $2,798,846. For the Emergency Services District, the proposed millage was 2.353 1, which was 4.29% above the rollback rate. The proposed budget was $78,839,816, a decrease of $9,758,232. For the Land Acquisition Bond Series 2024, the proposed millage was 0.1238. The proposed budget was $3,982,041, an increase of $2,138,609. Administrator Titkanich advised the Board to consider any proposed changes to the tentative budget and move to adopt the proposed millage rates. Indian River County, Florida Page 15 A motion was made by Commissioner Flescher, seconded by Commissioner Adams, to approve the proposed General Fund Millage Rate of 3.5475. The motion passed by the following vote: Aye: 5 - Chairman Loar, Vice Chairman Moss, Commissioner Adams, Commissioner Flescher, Commissioner Earman Nay: 0 -None A motion was made by Commissioner Flescher, seconded by Commissioner Adams, to approve the proposed M.S.T.U. Millage Rate of 1.1506. The motion passed by the following vote: Aye: 5 - Chairman Loar, Vice Chairman Moss, Commissioner Adams, Commissioner Flescher, Commissioner Earman Nay: 0 -None A motion was made by Commissioner Flescher, seconded by Commissioner Earman, to approve the proposed Emergency Services District millage rate of 2.3531. The motion passed by the following vote: Aye: 5 - Chairman Loar, Vice Chairman Moss, Commissioner Adams, Commissioner Flescher, Commissioner Earman Nay: 0 -None A motion was made by Vice Chairman Moss, seconded by Commissioner Adams, to approve the proposed Land Acquisition Millage Rate of 0.1238. The motion passed by the following vote: Aye: 5 - Chairman Loar, Commissioner Earman Nay: 0 - None 22. Adjournment 22.A. ADJOURN Vice Chairman Moss, Commissioner Adams, Commissioner Flescher, Administrator Titkanich summarized the upcoming budget hearing schedule. He stated that the preliminary budget hearing was set for September 9, 2026, at 5:01 p.m. in the Board of County Commissioners Chambers, followed by the final budget hearing on September 16, 2026, at 5:01 p.m., also in the Board of County Commissioners Chambers. There being no further business, the Chairman adjourned the meeting at 12:10 P.M. Indian River County, Florida Page 16 Board of County Commissioners Meeting Minutes — Final July 8, 2026 ATTEST: R-7 yan L. Butler Clerk of Circuit Court and Comptroller By::!N ry I � a' Deputy Cler l/O !<* Deryl Loar, Chairman . Approved:kt 4, 20264, 2026