Budget discussions between Mayor Donna Deegan’s office and the City Council will likely become contentious over the next month as officials debate spending practices after an auditor’s report showed the potential for deficits in the next four city budgets — leading one City Council member to propose changes to future budget processes.
The report projected a $78 million deficit in the 2025-26 budget when considering the expected revenue and already allocated expenditures. However, the report did not include the unallocated $96 million in the negotiated community benefits agreement as part of the EverBank Stadium deal or the proposal to register police and fire in the Florida Retirement System.
To counter the loss, City Council members have proposed cutting up to $47 million that Deegan proposed in operating reserve spending, and council member Rory Diamond plans to introduce legislation to cap mayoral spending power in the future.
Deegan’s office maintains the spending invests in the city’s future and cited a boost in the city’s credit rating s announced Tuesday.