Indian River County is proposing a $614.8 million budget for the 2026-27 fiscal year that would keep property tax rates unchanged for the seventh consecutive year while absorbing new responsibilities and accounting for rising costs.
County Administrator John Titkanich said the proposed budget represents a 2.7% increase over the current fiscal year, but county staff worked to limit spending growth by focusing on essential services.
"We just kind of focused on what the core needs were, and it resulted in us coming in at a budget that's 1.5 percent below the May CPI," Titkanich said.
The proposed spending plan would maintain the current General Fund and Municipal Service Taxing Unit millage rates for a seventh straight year. The Emergency Services District millage rate would also remain unchanged for the sixth consecutive year.
Despite a 6.8% increase in taxable property values, generating about $7.27 million in additional property tax revenue, Titkanich said much of that new revenue will be offset by an 8.1% increase, or about $7.96 million, in state-mandated funding for the county's constitutional officers.
Titkanich said the proposal also reduces the county's midyear budget by more than 13% as officials prepare for the possibility of future property tax reforms.
One of the biggest changes in the proposed budget is the county assuming responsibility for mental health court services, which were previously funded through the Indian River County Sheriff's Office.
"We had proposed at that point in time that we would take those services on. We anticipated doing it at mid-year, but we didn't get all the necessary information, not until shortly after the infamous settlement agreement. And so we have prepared and are ready to take it over on Oct. 1," Titkanich said.
"So if there were funds budgeted, they were in the sheriff's budget. Now they're in the county's budget and we will be taking on those expenses directly," he said.
The county is also taking over animal control services, ending its previous arrangement in which those duties were handled under contract by the Humane Society.
Titkanich said the change was driven by growing demand and the need to ensure public safety.
"The need was exceeding their capacity. Animal control officers, they've not been able to shelter animals. Obviously, from a public safety standpoint, animals that are loose, that would pose a threat to kids or families, we don't need them loose. So we had to kind of jump into that to make sure we can provide a safe environment and community for our residents," he said.
The county has spent the past year preparing to bring the service in-house, including acquiring and renovating a former veterinary clinic.
"We purchased the property last year. We've been working outfitting. It was a former vet clinic, so that helped significantly because it came with equipment. And then we've been outfitting and building it out and we'll be taking over that services to reduce the load on the Humane Society. We do envision a modified partnership. We will be able to take on the animals that they have a difficulty in doing," he said.
Beyond those additions, Titkanich said county staff took a more deliberate approach to budget development this year by closely reviewing spending requests and delaying projects that could create long-term operating costs.
"We had certain departments do zero-based budgeting. So we basically wiped out their budget. Then they had to justify every request. And we're going to do more next year. Our focus was essentially making sure we looked at capital projects. We didn't want to take on any project that would add future operational liabilities or expenses to the county or staff," he said.
"We delayed them until we have a better understanding of what's going to happen. Several major funds will show reductions. Largely either they delayed, adjusted or they managed the timing of projects so we could make sure that our execution of those projects were happening in a timely fashion. We weren't taking on too many. So we could get the ones that we have on the books done before we move on to add to other ones," he said.
The proposed budget continues funding for law enforcement, fire rescue, emergency medical services, emergency management, transportation infrastructure, parks and recreation, environmental protection, utilities and other county services.
The budget is not final and remains subject to change as county commissioners continue public budget workshops over the coming weeks.