The Ocala City Council held a work session on August 12, 2025, to discuss the Fiscal Year 2025-26 budget, focusing on key financial issues and personnel requests. The meeting began with a review of the annual ad valorem taxes on homesteaded properties, which currently amount to $8 million. Council members expressed concerns about the potential elimination of these taxes and the need for a replacement funding mechanism to avoid a significant budget shortfall.

City officials indicated that discussions regarding alternative funding sources are ongoing, with expectations that next year's ad valorem taxes will differ from the current year. The city manager was tasked with providing updates on these discussions to the council members individually.

The council also addressed budget increases attributed to tariffs, with one member cautioning against relying on this factor for future budget planning, as current economic indicators do not reflect significant impacts from tariffs.

Personnel requests were reviewed, including a new position for a Community Redevelopment Agency (CRA) specialist, which comes with a salary of $74,000, including a vehicle. The council noted a nearly $2 million increase in the executive and legislative budget, attributed to the transfer of staff from other departments to the city manager's budget.

Concerns were raised regarding the Information Technology (IT) budget, which has seen a $2.3 million increase over two years. Council members questioned whether this trend would continue, with city officials explaining that the increase is partly due to consolidating physical security measures and addressing aging equipment. Future projects, including a website redesign and updates to timekeeping systems, were also mentioned as contributing factors to the budget.

The meeting concluded with discussions on the fee schedule, particularly regarding Community Development District (CDD) fees, which are set by state statute. The council confirmed that these fees, along with definitions for substantial changes to planned developments, are established to ensure compliance with state regulations.

Overall, the work session highlighted the city's financial planning challenges and the need for careful monitoring of budgetary changes as discussions on tax structures and funding mechanisms continue.