ST. CLOUD, Fla. — The City of St. Cloud has proposed a $231.3 million budget for the 2026-27 fiscal year that includes several spending reductions while balancing operating expenses without using city reserves for the first time in more than three decades. The proposal also maintains the city’s millage rate, or property tax rate, at 5.1128 for the 14th consecutive year.

To avoid using reserves for operating expenses, the proposed budget includes the following spending reductions:

  • Reducing financial support for and memberships in outside organizations, including area chambers of commerce, the Downtown Business Group, Osceola Reads and St. Cloud Main Street.
  • Reducing employee incentives, activities and longevity awards.
  • Reducing tuition reimbursement for employees.
  • Reducing spending from community empowerment funds.
  • Reducing departmental travel and training budgets.
  • Limiting out-of-state travel to department directors attending training required for professional certification.
  • Defunding several vacant positions.
  • Delaying planned purchases of certain vehicles and equipment.
  • Eliminating or reducing spending on promotional items, logo apparel and food for events such as the Citizens Academy and employee appreciation dinners.

The proposed budget will be presented during two public hearings in the City Council Chambers at St. Cloud City Hall. The first hearing is scheduled for Thursday, Sept. 10, at 6:30 p.m., followed by the final hearing on Thursday, Sept. 17, at 6:30 p.m.

During an August City Council budget workshop, City Manager Veronica Miller said eliminating the city’s longstanding practice of using prior-year fund balance—essentially the city’s reserves—to pay operating expenses has been a priority.

For 31 years, using reserves to balance the budget had been standard practice in St. Cloud. In fiscal year 2021, the city used $9.2 million from reserves. During Miller’s first year as city manager, that amount dropped to $8 million. Under the proposed 2026-27 budget, it would fall to zero.

“This has been a priority, and we accelerated the plan this year to help ensure the financial stability of the city regardless of the outcome of the vote in November on the proposed property tax reform,” Miller said.

Miller.

Miller described the proposal as one of the leanest budgets the city has presented, noting that departments spent considerable time identifying areas where expenses could be reduced while maintaining the services and events residents expect.

“If we need to cut more in future years, we will be making some tough choices on service levels and programs,” Miller said.

Of the city’s total proposed budget, $94.5 million is allocated to the General Fund, which pays for police, fire rescue, transportation, and parks and recreation facilities and activities.

Property taxes provide approximately 39% of General Fund revenue. The remainder comes from sources that include intergovernmental transfers from organizations such as the Orlando Utilities Commission and Toho Water Authority, charges for services, licenses, permits and other revenue.

Police and fire rescue account for 58% of total General Fund revenue, representing approximately $53.2 million in spending.

The proposal also includes funding for several capital projects. The LaSalle Avenue and Massachusetts Avenue extensions would be paid for through mobility impact fees collected from developers for new development.

Nearly $1.5 million in road paving projects would be funded through gas tax revenue and franchise fees.

Despite the spending reductions, the proposed budget maintains funding for several St. Cloud special events, including 4th on the Lake, the Rockin’ the Cloud New Year’s Eve celebration, Trail of Terror, the Christmas tree lighting and Memorial Day at Mount Peace Cemetery.

The spending plan also reflects increases in the city’s insurance costs, a total of 3% in salary increases for general employees and expenses associated with negotiated contracts with the city’s police and fire unions.

“This budget helps ensure we are well positioned to meet the needs of our residents not only next year, but well into the future,” Miller said. “We are serious about being good stewards of the public’s trust and tax dollars. Our city is resilient, and our employees look forward to continuing to provide high-quality public services to our residents.”

A complete copy of the proposed budget is available at StCloudFL.gov/budget.