Zephyrhills Sets Monday Hearing on Property Tax Rate and New $85 Stormwater Fee

Zephyrhills property owners get their say Monday on what they'll pay the city next year. The City Council holds its required public hearing on the fiscal year 2026-2027 property tax rate at 6 p.m. Sept. 14 at City Hall, 5335 8th Street, the same meeting where residents can also weigh in on a newly proposed $85 annual stormwater fee.

The headline number is 6.2375 mills. That's the "rollback" rate the council voted to adopt as its tentative millage back in July, choosing it over simply holding the current rate of 6.25 mills. Rollback means the rate is calculated to bring in roughly the same property tax revenue as last year, even as rising property values would let the city collect more without technically raising the rate.

The dollar difference between the two options is small in citywide terms. Finance staff told the council in July that sticking with 6.2375 instead of 6.25 would generate about $21,000 less in revenue, out of an estimated $10.9 million in total ad valorem collections built on a citywide taxable value of roughly $1.8 billion. One council member called the gap small but symbolically important, since holding at 6.25 would have shown up on residents' trim notices as a tax increase even though the rate itself hadn't moved.

What's driving the budget behind the rate

City staff walked the council through the draft FY27 budget on Aug. 10, reporting unassigned reserves of about $16.4 million, above the city's own policy target of keeping roughly 25% of general fund expenditures on hand. That cushion gave council members room to debate other budget questions still not fully settled, including a possible 6% pay increase for city employees and where to trim marketing and publicity spending.

Those questions were not resolved at the August meeting. Council asked staff to come back with a firm cost estimate for the 6% raise scenario and other budget adjustments, along with more detail on carryforward funds, before the budget is finalized. Part of the uncertainty stems from the state: the Florida Legislature's Office of Economic and Demographic Research had not yet released updated revenue projections at the time of the August workshop, leaving city finance staff working with incomplete numbers on the state-revenue side of the ledger.

The stormwater fee, on the same agenda

The same Sept. 14 meeting doubles as the final hearing on a new stormwater assessment that would charge $85 per year, per Equivalent Residential Unit, to properties with impervious surfaces such as roofs, driveways and parking lots. The fee would be billed as a non-ad valorem line item on the annual property tax bill rather than folded into the water bill.

City discussions have described the $85 figure as a first-year rate, with the assessment rising in later years as the city works through a multi-year schedule for stormwater infrastructure. Because it's billed separately from the millage rate, it will add to a homeowner's total tax bill even though it isn't part of the property tax debate itself.

What happens next

State law requires the rate to be read into the record at Monday's hearing along with an explanation of how it compares with the rollback calculation, since any rate other than a full rollback to a lower figure has to be described in specific terms on the public notice. Residents can speak on both the millage rate and the stormwater fee before the council takes its votes. The budget itself, including the pay raise question and any final spending trims, is expected to come back for further council action before the fiscal year begins Oct. 1.

Stay connected with Zephyrhills Community Website for updates on how the council votes Monday, and join the conversation in our Community Forum. For more coverage of city budget and policy decisions, visit our government and politics section.

Header photo: Ebyabe / Wikimedia Commons (CC BY-SA 2.5)