Mayor Ken Welch presents $1.1 billion budget 

St. Petersburg Mayor Ken Welch frequently expressed doubt that he could lower property taxes for a fourth consecutive year following Hurricanes Helene and Milton. The city’s millage rate will remain unchanged.

Welch presented his administration’s $1.1 billion spending plan to city council members at their July 17 meeting. Money is tighter than in recent years due to an unprecedented storm season and federal funding cuts or freezes.

Environmental resiliency and public safety are focal points in the fiscal year 2026 budget. Welch said the overarching goal was to “balance our fiscal resources with our diverse community needs in a way that is equitable, sustainable and impactful.”

“The annual budget process is an opportunity for our city to fund our priorities, to innovate and respond to new challenges while meeting the critical service delivery responsibilities of city government,” Welch said.

St. Petersburg’s property tax base continues growing and increased by 4.93% during the current fiscal year, which ends Sept. 31. However, that is less than half of the 10.43% spike seen in fiscal year 2024.

Officials expect to accrue $228.9 million in ad valorem revenue this year, a $10.5 million increase. The city’s general fund operating budget will expand by $18.2 million.

“That lower rate of growth, combined with the cost of opening the doors – wages, operational costs, inflation – combined with our heightened focus on resiliency after a record storm season last year, means that I will not be recommending a millage reduction,” Welch said.

St. Petersburg has nearly $37 billion in taxable value and a 6.4525 millage rate that will carry over into 2026. That number peaked at 6.7700% in 2015 and 2016 and was at 6.7550% when Welch assumed office in 2021.

The budget includes $10 million for affordable housing. Welch said the administration will continue prioritizing the development and preservation of homes for households earning up to 80% of the area median income.

Programs that provide city employee housing assistance, rebates for rehabilitation projects, and resources for tenant evictions and code compliance will continue to receive funding. Officials have also allocated roughly $2.12 million for homelessness prevention and mitigation services.

Welch said his administration has modified the capital improvement projects budget, now at $202 million, to advance the St. Pete Agile Resilience Program (SPAR). He also noted that funding the initiative’s accelerated projects will require “some combination of bonding grants and other resources,” likely increased utility rates.

Capital project funding includes $2.3 million for repairs to the Municipal Services Center, $7.5 million for roadway projects, and $42.9 million for upgrades to water reclamation facilities. Welch said the $353.6 million public works budget reflects “the city’s commitment to improving our infrastructure, maintaining assets and preparing for the future.”

Budget director Liz Makofske said the city “repurposed a vacant position at Fire Rescue in order to add an additional emergency management specialist.” Public safety departments will receive $244.4 million, or 25.3% of the total operating budget.

“There is funding for the continuation of the body-worn camera, fleet in-car video, taser and drone programs at $3.3 million,” Welch said. “Within the Fire Rescue Department, funding is included to continue the fire cadet program.”

He also added eight firefighter-paramedic positions and a lieutenant role to manage logistics and training. Welch said county funding would support the new hires.

Youth program highlights include $500,000 for the Mayor’s Future Ready Academy and $250,000 in grants for the Suncoast Boys and Girls Clubs. Year-round youth employment programs will receive $400,000.

Administrators have dedicated $250,000 to the St. Petersburg Economic Development Corporation, $150,000 to the St. Pete Greenhouse and $10,000 to the St. Petersburg Area Chamber of Commerce’s Grow Smarter program. The budget includes $200,000 for citywide workforce development programs, $220,000 for “main street” businesses and $100,000 for corporate relocations and expansions.

However, administrators reduced workforce development grant funding by $100,000. Makofske also noted that they eliminated a community impact director role within the mayor’s office.

Welch said the spending plan provides “new and increased funding for the arts.” The city’s arts program, the Palladium, the Woodson African American Museum of Florida and The Florida Orchestra are the largest recipients.

Councilmember Corey Givens Jr. said the “reality is the federal government has made a lot of cuts,” and asked how officials could “put this into perspective for our constituents.” Makofske noted that while there is “not a lot of new things in the budget,” administrators sought to maintain the same service levels.

“We’re doing everything we can do locally – we’ve got some great examples of how we’ve tried to fill the gap,” Welch said. “We’re trying to be innovative there … but I think we have to be really active on the legislative front, talking with our partners on both sides of the aisle about what these impacts really mean.”

Stakeholders can still provide feedback at two public hearings in September. City council members unanimously approved the recommended millage rate and can only lower it before voting on the budget Sept. 25.

For more information on the recommended budget, visit the website here.