Tallahassee Commission Approved $1.2 Billion City Budget

The city council adopted a new budget for Fiscal Year 2027 while lowering the property tax millage rate to 4.2782.

Updated on Sept. 24, 2026 in City Hall

Isometric editorial illustration of a stone plaza with a fountain and clock, representing municipal urban planning and fiscal structures. — Tallahassee commissioners approved a $1.2 billion city budget for fiscal year 2027 while lowering the property tax millage rate to 4.2782. AI Illustration. Upload story photo >

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Tallahassee commissioners adopted a $1.2 billion budget for Fiscal Year 2027, successfully reducing the property tax millage rate to 4.2782. The approved plan aims to balance city expenses with a 1% budget reduction following recent cost-saving measures.

Why it matters

The reduction in the tax rate serves as a proactive step to shield residents from potential tax hikes amid expected state policy changes. Commissioners sought to minimize the property tax burden while managing the city's broader financial obligations.

The city adopted a budget of $1.2 billion and a millage rate of 4.2782 mills, reflecting a 1% reduction. This decision followed the city generating $8.5 million in savings through a voluntary separation program.

The players

Jeremy Matlow

He is a Tallahassee City Commissioner who advocated for the property tax reduction.

Jack Porter

She is a Tallahassee City Commissioner who supported the budget reduction to avoid higher resident costs.

The details

While the tax rate was lowered, residents will see increased costs for city services including water, sewer, and solid waste. Monthly parking lease rates at Kleman Plaza and Calhoun Eastside garages are also scheduled to rise by $15.

September 9, 2026: Commissioners held the first budget public hearing.
September 23, 2026: The commission approved the budget with the rollback rate.
October 2026: Utility rates and fees are adjusted based on CPI.
Fiscal Year 2027: The new $1.2 billion city budget takes effect.

Political Context

The city's adjustment of utility and fee rates directly follows the inflationary benchmarks established by the Consumer Price Index. Critics often raise concerns that such annual fee hikes disproportionately impact low-income residents despite a lower property tax millage.

Residents will experience direct increases to their monthly utility bills, including an additional $2.83 for water and sewer and $1.49 for solid waste. Furthermore, daily commuters parking at Kleman Plaza or Calhoun Eastside will pay $15 more per month.

The takeaway

Taxpayers should review their upcoming utility statements to account for the annual fee adjustments effective in October. Planning for these specific service cost increases can help families manage their monthly household budgets more effectively.