City of Panama City Pre Budget Workshop 06112026

The City of Panama City held a pre-budget workshop on June 11, 2026, focusing primarily on addressing a projected general fund shortfall for fiscal year 2027. Initially, a $4.5 million reduction in expenses was targeted, but updated revenue projections reduced the shortfall to approximately $2.5 million. The city manager and department heads presented detailed potential cuts across various departments, including police, fire, public works, parks and recreation, and logistics. Significant proposed reductions included unfunding 23 vacant positions, eliminating contracts such as the Destination Panama City contract, and pausing the state lobbyist contract. The police department highlighted the impact of a 16-officer reduction, which would reduce staffing to 2006 levels and increase safety risks. The fire department proposed closing one station and reducing seven staff, which would increase response times and risk. Commissioners discussed the need for strategic prioritization, exploring alternative cost-saving measures beyond staff cuts, and the importance of maintaining morale. They also considered potential revenue enhancements, such as raising merchant fee caps and property sales, while expressing reluctance to raise taxes due to political and community concerns. The workshop concluded with plans for further department presentations and additional budget workshops in July to refine priorities and balance the budget.