The City of Zephyrhills has approved its 2025-26 budget Monday, setting spending at $135.9 million — about $30 million more than last year. The plan focuses on raising employee pay, tackling major improvement projects, and investing in the city’s future growth.
City employees who are not part of a union will see a 6 percent raise starting October 1. The city is also covering higher health insurance costs, which went up by more than 8 percent. Operating costs grew slightly as well, mainly due to higher insurance premiums.
The biggest changes in the budget come from capital projects. Nearly $70 million is being set aside for improvements, including a $27.9 million redesign of the City Yard, $16 million worth of upgrades at Zephyr Park, $2 million for Hot Spot improvements, and $1.2 million for new sidewalks and trails. The city is also taking on new bonds to help pay for those projects.
The General Fund, which covers day-to-day city services, more than doubled from $21.6 million to $57.4 million. Rising property values helped fuel the increase, with the city’s taxable value climbing to $1.78 billion. Even with the higher values, the city’s tax rate will stay the same at 6.25 mills.
Other funds also saw changes. The Utility Fund is going up 21 percent, covering projects like new facilities, meter replacements, and system repairs. Utility rates will rise by 3 percent starting October 1. The Sanitation Fund is increasing nearly 50 percent, paying for new garbage trucks, equipment, and recycling carts. Meanwhile, the Airport Fund dropped to $2.6 million after the completion of major projects and reduced state grant funding.