City of Panama City Budget Hearing 09082026

The City of Panama City held a budget hearing on September 8, 2026, to discuss and adopt the tentative millage rates and fiscal year 2027 budgets for the city and the Downtown Improvement District. The commission approved tentative millage rates of 4.7999 mills for the city and 3.0 mills for the Downtown Improvement District, maintaining the previously set caps. The proposed tentative budget totals approximately $143.8 million for the city and $268,000 for the Downtown Improvement District. Key budget goals included balancing the general fund without using reserves or one-time revenues and beginning to rebuild reserves. The commission engaged in detailed discussions about budget reductions, fund reallocations, and the creation of special revenue funds, particularly concerning the builder services fund and enterprise funds. They debated the appropriate general fund budget cap, with motions to reduce it to $62.45 million passing by a 3-2 vote. The discussion also covered operational cuts, staffing levels, cost of living adjustments for employees, and the need for more transparent and strategic budgeting processes, including potential zero-based budgeting and line-item reviews. The commission emphasized the importance of maintaining essential services and public safety while improving fiscal discipline. The tentative budget was ultimately adopted unanimously, with plans for further budget refinement and collaboration moving forward.