City of Clearwater –Special City Council Budget Work Session - 8/11/2026

The City of Clearwater held a Special City Council Budget Work Session on August 11, 2026, focusing primarily on staffing reports, artificial intelligence (AI) integration, and the proposed fiscal year 2026-2027 budget. The council reviewed a new staffing report aligned to the fiscal year, noting stable vacancy and turnover rates, and discussed AI applications in cybersecurity, customer service, and operational efficiencies, including a pilot program with a $65,000 token budget for AI usage. The budget presentation detailed an $800 million total expenditure budget, a 5% increase from the previous year, with reductions including a $100,000 cut in capital transfers and elimination of certain projects and grants. The council also discussed a contingency plan addressing potential revenue reductions of over $20 million due to a pending referendum, proposing service and personnel cuts across multiple departments, capital project deferrals, and increased user fees. The session included community engagement feedback and emphasized the need for careful planning amid uncertain future revenues, with no final budget approvals made during the meeting.