Pensacola local-government report

As of Tuesday, August 11, 2026, 2:33 p.m. CDT

Executive summary

• City of Pensacola: Council has tentatively kept the property-tax rate at 4.2895 mills, but the FY2027 budget and millage are not final. The immediate action meeting is Thursday, August 13, with votes or hearings expected on the Bay Center partnership, a rewritten Land Development Code, stormwater assessments and several capital contracts.
• Escambia County: Commissioners are working from a proposed $890.9 million FY2026-27 budget. Discretionary grants, youth programs and economic-development funding remain disputed. The county also paused commitment to a Bay Center redevelopment plan after estimates reached $162 million for the first two phases.
• Big joint issue: The city is scheduled to consider an interlocal Bay Center agreement Thursday even though county commissioners said they need clearer financing, management and partner commitments before authorizing major improvements.

1. Recent City Council decisions and pending action

Tentative FY2027 tax rate

On July 16, City Council voted 7-0 to tentatively maintain the current 4.2895-mill property-tax rate. Because that exceeds the 4.126 rollback rate, Florida’s tax-notice rules classify it as a proposed 5.23% tax increase, even though the numerical millage rate would not change.

City finance staff said:

• The General Fund is projected to collect about $256,000 less overall even at 4.2895 mills, because weaker transfers, fees and other revenues offset property-tax growth.
• Moving to the rollback rate would remove roughly another $1.1 million–$1.2 million.
• Police salaries and benefits require about $1.3 million more, plus approximately $200,000 for fuel and vehicle maintenance.
• Proposed cost controls include a September 1 hiring freeze, restrictions on non-mandatory overtime and essentially flat funding for most General Fund departments.
  Meeting coverage and recording

This was a maximum/tentative rate, not final adoption. Council can lower it during the hearing process but generally cannot raise it without restarting tax-notice procedures.

Major items coming to Council on August 13

The official August agenda places these items before Council:

• Pensacola Bay Center interlocal agreement: Proposed city-county framework concerning the facility’s future.
• Land Development Code rewrite: First of two required public hearings on repealing and replacing the existing code. This could affect zoning, development standards, parking, building form and review procedures citywide.
• Stormwater assessment: Public hearing and resolution reimposing assessments for the fiscal year beginning October 1, 2026.
• 17th Avenue sidewalks: Proposed $136,286.70 contract, including contingency, to Chavers Construction of Cantonment.
• Spring Street Library boiler controls: Proposed $51,557 contract, including contingency, with Trane.
• Veterans Memorial Park restroom: Proposed permanent restroom contract of $204,455, plus a $10,222.75 contingency.
• Housing plan amendment: Adds state-required manufactured-housing language to the city’s SHIP Local Housing Assistance Plan.

These are pending recommendations, not completed awards as of this report.

2. Escambia County Commission: recent direction

Bay Center redevelopment paused

At its August 6 Committee of the Whole workshop, commissioners declined to commit to a redevelopment option while staff and elected officials address financing, legal structure, management, city participation and private-sector partnerships.

Current estimates reported to the board were:

• Approximately $162 million for the first two phases—renovating the existing building and adding an event center.
• Approximately $238 million with a third phase that includes a roughly $31 million parking structure and $45 million ice rink.
• Construction would realistically start around 2028, contributing to higher projected costs.

The working funding source is Tourist Development Tax revenue. County staff estimated roughly $13.2 million could be available for debt service in a $22 million collection year after required tourism promotion spending; projected annual debt service for the Bay Center, event center and John R. Jones turf project was approximately $12.5 million. That leaves little room for other tourism-funded projects.

The county’s action was effectively “pause and plan,” not rejection. Staff is expected to continue work on an interlocal agreement, management arrangements and potential development partners. Detailed meeting coverage | Official August 6 meeting listing and video links

3. Budget watch

City of Pensacola FY2027

Council held its principal proposed-budget workshop the morning of August 11. The workshop packet and presentation are posted, but the budget remains under review.

The main pressure points are:

1. Maintaining current services while non-property-tax General Fund revenues decline.
2. Police compensation and vehicle-operating costs.
3. Possible effects of statewide property-tax changes.
4. Uncertainty surrounding renewal of the local-option sales tax.

The first city millage/budget public hearing has been identified for September 9; the exact meeting notice should be checked again when the city posts the final hearing agenda.

Escambia County FY2026-27

The county’s proposed budget is $890.9 million:

• $22.1 million larger than the prior year.
• General Fund projected to increase by about $11.9 million.

Items still being debated—not yet final cuts—include:

• Eliminating or restructuring commissioner-sponsored community-support funds.
• Cutting the $450,000 Summer Youth Employment Program or shifting youth services toward the Escambia Children’s Trust.
• Reducing the county’s $600,000 annual contribution to the Pensacola-Escambia Promotion and Development Commission because the county hired its own economic-development manager.
• Broader spending reductions in anticipation of possible state property-tax changes.

The county scheduled budget hearings for September 8 and September 24. PNJ budget-workshop report

4. Projects moving forward

Pensacola International Airport taxiway

The airport received another $1.8 million FAA award toward the Taxiway A South rehabilitation:

• Total project: approximately $10.8 million
• Federal funding: approximately $9.7 million
• Remaining share: divided equally between FDOT and airport capital funds
• Work: pavement rehabilitation, LED edge lighting, electrical infrastructure, signs, markings, grading and drainage
• Construction anticipated in early 2027
• Substantial completion expected by September 2027

Official city project announcement

Airport explosives-detection K-9

The city also announced a $15,395 federal Justice Assistance Grant for a new explosives-detection K-9 and training equipment at Pensacola International Airport. A Pensacola Police officer is already prepared to serve as handler. Official announcement

Perdido Kids Park

Escambia County has scheduled a grand reopening for the improved Perdido Kids Park on Thursday, September 3 at 10 a.m. Escambia County News Center

5. Upcoming public meetings

City of Pensacola

Wednesday, August 12 — City Hall, 222 W. Main St.

• Police Pension Board — 9 a.m.
• General Pension Board — 11:30 a.m., or immediately after Police Pension
• Fire Pension Board — 2 p.m., or immediately after General Pension

Thursday, August 13

• Pensacola City Council — 5:30 p.m.
• Council Chambers, first floor, 222 W. Main St.
• Watch online at CityofPensacola.com/video
• Full weekly schedule and agenda links: City meeting notice

For disability accommodations, call 850-435-1606 or TDD 850-435-1666, preferably at least 48 hours ahead.

Escambia County

Wednesday, August 12

• Florida-Alabama Transportation Planning Organization — 9 a.m., Bayview Community Center, 2001 E. Lloyd St.
• Development Review Committee — 1 p.m., 3363 W. Park Place, Room 104

Thursday, August 13

• PBA bargaining session — 9 a.m.
• ATU union negotiations — 1 p.m.
• Both at the Ernie Lee Magaha Government Building, 221 Palafox Place

There is no regular County Commission meeting listed for August 10–14. County meetings and archived video are available through MyEscambia’s meeting portal and ECTV. For accommodations, call 850-595-3279.

What to watch most closely

1. Thursday’s Bay Center agreement: It will show whether the city and county can establish a unified planning structure without committing immediately to the full $162 million-plus concept.
2. City Land Development Code: This is likely the August 13 item with the broadest long-term effect on neighborhoods and development.
3. September budget hearings: Both governments are advertising preliminary positions now; final taxes, program cuts and capital priorities can still change.
4. City stormwater assessment: Property owners should check the adopted rate and assessment roll rather than assuming it remains unchanged.

👉 Would you like the next report organized by council/commission district, or as a taxpayer-impact tracker for millage, stormwater and sales-tax decisions?