Winter Springs budget would boost infrastructure spending without raising tax rate

Winter Springs plans to spend heavily on water and sewer improvements, stormwater projects and other upgrades to maintain aging systems and address long-term needs, but residents would not see an increase in the city’s property tax rate under a proposed fiscal year 2027 budget.

City officials reviewed the proposed $118.5 million budget during the city’s budget workshop on Monday. While spending would rise from about $80.4 million to $118.5 million, city officials said most of that increase comes from major construction and utility projects rather than expanding city services.

“In many ways, this budget tells a simple story,” City Manager Kevin Sweet said. “Protect the city’s financial foundation, maintain excellent public service, keep investing in the infrastructure that supports our community and remain cautious in the face of longer-term revenue uncertainty.”

While the proposed 2.620 millage rate would remain unchanged, the proposed budget projects that the city will collect more than $480,000 in property tax revenue than in the current fiscal year due to rising property values across Winter Springs.

Utility projects fuel budget growth

According to the proposed budget, the city’s capital improvement spending would rise from $27 million in fiscal year 2026 to nearly $62 million in fiscal year 2027. Much of that increase is tied to utility projects. Capital spending in the city’s enterprise funds, which includes water, sewer and stormwater operations, would increase from about $14.6 million to $49 million as the city moves forward with major treatment plant and system improvement projects.

Sweet said the budget includes approximately $39.9 million in State Revolving Fund loan proceeds tied to utility capital projects. Those funds are dedicated to the replacement of the city’s east and west sewer plants. Sweet said continued investment in treatment facilities, pipes and other utility infrastructure is necessary to maintain reliable service and avoid higher costs in the future.

Personnel costs are expected to rise in part because of an 8% increase in health insurance expenses. The proposed budget also includes four new stormwater job positions aimed at improving the city’s ability to maintain drainage infrastructure and respond to flooding issues. These new positions are consistent with the city’s stormwater master plan, according to Sweet.

Debate over tax burden

While no property tax rate increase was proposed, Commissioner Paul Diaz argued that many residents will still feel the effects of rising costs because property values continue to increase.

“The reality is that the tax burden continues to go up on residents, regardless of what that millage rate is,” Diaz said. “When your property values go down, have you noticed that your tax rate doesn’t go down at the same rate, but on the way up, it sure goes up real fast?”

Diaz said discussions about taxes often focus on whether the millage rate changes, but homeowners ultimately care about the amount they pay each year. He noted that city revenues have continued to grow even as the tax rate has remained unchanged because increasing property values generate additional revenue.

He urged city leaders to look beyond taxes when discussing how to pay for services, pointing to sponsorships and partnerships.

“One of the things that would be important for us as a governing body is to start looking at other revenue sources that are not constantly beating taxpayers over the head for more and more revenue,” Diaz said.

Diaz also argued that residents are presented too often with a choice between higher costs and reduced services. He suggested the city should continue evaluating spending and operational efficiency while exploring additional ways to offset expenses.

Senior center services remain unchanged

Before budget discussions began, Mayor Kevin McCann addressed concerns about potential cuts to the Winter Springs Senior Center, an issue that drew supporters of the facility to the meeting.

“I do want you to know there’s no conversation about any cuts to the senior center or the therapy pool,” McCann said. “There are no cuts being made, and there’s never been any discussion.”

Sweet said the senior center serves about 500 active members, while roughly 245 people use the therapy pool. The proposed budget includes $140,000 from the public facilities capital project fund to replace the pool’s dehumidification system.

The City Commission approved a tentative property tax rate on Monday and scheduled public hearings on the proposed budget for Sept. 14 and Sept. 28. City officials will continue reviewing the spending plan before a final vote. If approved, the fiscal year 2027 budget would take effect on Oct. 1.

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