The Fort Walton Beach City Council voted 4-3 Tuesday night to set the maximum property tax rate for fiscal year 2025-26 at 4.3282 mills, maintaining the current millage rate.
- The decision came during a special meeting where council members debated whether to keep the current rate or implement a rollback rate that would reduce property tax revenue to the city.
Finance Director Nicole Nabors told the council that property values are projected to increase 9.71%, or $213,640,324, bringing the total taxable value to $2,413,886,318. Maintaining the current millage rate would result in a 10.16% increase in general fund revenue, totaling $764,000, and a 7.48% increase in Community Redevelopment Agency fund revenue, adding $115,000.
Councilman Payne Walker and Councilman David Schmidt opposed the motion, favoring a rollback rate of 4.0543 mills that would keep city revenue from property taxes at the same level as the previous year.
For homeowners, the maintained rate means a non-homestead property valued at $100,000 would pay an additional $27.39 per year, while a homesteaded property of the same value would pay an extra $13.70 annually, according to Nabors.
Councilman Bryce Jeter, who made the motion to approve the maximum rate, emphasized that the decision only sets the ceiling for the upcoming budget process.
- “This is just setting the maximum rate. We’re going to have many months of additional discussion about this topic,” Jeter said.
The vote required Mayor Nic Allegretto to break a 3-3 tie, voting in favor of maintaining the current rate as the maximum.
City Manager Jason Davis indicated that staff will prepare budget scenarios at different millage rates, including options below the maximum, giving the council multiple choices during future budget discussions.
The council also approved dates for two public hearings on the millage rate and budget: Sept. 9, 2025, and Sept. 23, 2025, both at 6 p.m.
The city must coordinate its hearing schedule with the Okaloosa County School Board, which has hearings scheduled for July 28 and Sept. 8, and Okaloosa County, which plans hearings for Sept. 4 and Sept. 16.
