Lakeland's $872 Million Budget Gets Final Vote Sept. 24

Lakeland's City Commission will hold its final public hearing and vote on the city's Fiscal Year 2027 budget at 6 p.m. Sept. 24 at City Hall, deciding on an $872 million spending plan that is 7% larger than this year's while leaving the property tax rate untouched. Commissioners gave the budget unanimous tentative approval on Sept. 10, and the new fiscal year begins Oct. 1 regardless of how the final vote goes.

The tax rate stays at 5.4323 mills, the same figure Lakeland has held for years. But rising property values and new construction are expected to bring in roughly $3 million more in tax revenue even without a rate increase, meaning most homeowners will see a similar or slightly higher bill tied to their property's assessed value, not a change in the rate itself.

Where the money actually goes

Property taxes are a small slice of the total. Utility charges for electric, water and waste service make up nearly two-thirds of net revenue, about $572 million, while property taxes bring in about $65 million, roughly 7.5% of the budget. The General Fund, which covers police, fire and parks, totals $197 million.

Personnel is the single largest expense at $236 million, 27% of the budget. General employees get a 2% across-the-board raise, with merit increases of 2.5% or 3% for those who qualify, and a citywide wage study flagged 445 positions needing market pay adjustments. Police, fire and Lakeland Electric workers are covered by separate union contracts. Police will see $1.5 million in salary adjustments on top of standard raises, and Electric employees get $1.38 million in negotiated adjustments.

Underground pipes are a big driver of the increase. Water Utilities Director Joe Costine has told commissioners that parts of the city's system are 80 years old, old enough that some records predate computers. The FY27 budget sets aside $53.3 million for water and wastewater capital and maintenance work, part of $176.7 million in total capital spending, 20% of the budget.

Lakeland Linder International Airport gets $25.37 million for capital projects. And the city is finally moving to replace its police and fire radio system, installed starting in 2012, which is no longer supported by the manufacturer and will soon be incompatible with a new encryption standard Polk County public-safety agencies plan to adopt. IT Director Oscar Torres has told commissioners his staff has been buying parts on eBay to keep the old radios working. The full replacement is estimated at $28.4 million and will roll out over about two and a half years, starting with police and fire. FY27 includes $1.68 million in debt service for the project.

Pickleball courts cut from the plan

Not everything survived the budget process. A proposed $3.1 million Holloway Park pickleball complex, which would have added 14 lighted courts and a pavilion, was left out of the final plan after commissioners debated it at length. City officials have not said whether the project could return in a future budget cycle.

Bracing for Amendment 3

City finance officials are already planning for what happens if Florida voters approve Amendment 3 in November. The measure would raise the homestead exemption from $50,000 to $150,000 starting in January 2027 and to $250,000 in January 2028, a change city Finance Director Mike Brossart has estimated could cost Lakeland about $14.5 million a year, roughly 8% of the General Fund. That fund pays for police, fire, libraries, parks and code enforcement, services largely supported by property taxes rather than utility fees.

City Manager Shawn Sherrouse has said any version of the amendment on the table would phase in gradually and would not hit the FY27 budget directly. Commissioners plan to begin contingency planning once the new fiscal year opens Oct. 1, a month before the November vote.

Commissioners still have to decide what, if anything, replaces Amendment 3's lost revenue if it passes, a question that will likely dominate budget workshops well before next year's cycle begins.

Stay connected with Lakeland Community Website for continuing coverage of City Hall decisions that affect your wallet and your neighborhood. Visit us at lakeland-community.com, join the conversation in our Community Forum, and read more local government stories or check our latest news coverage for updates after the Sept. 24 vote.

Header photo: Connor J. Williams / Wikimedia Commons (CC BY 3.0)