The millage rate for FY ’26 is 6.65 mills and one-tenth of a percent lower than the existing rate of 6.75 mills. The rate of 6.65 mills per $1,000 of taxable property is equal to $665 per $100,000 of property value.

The council’s action tonight marks the second consecutive year of the millage rate being decreased by one-tenth of a percent.

The FY ’26 budget totals just over $81 million. New positions in this spending plan include a deputy public services director, three police officers, and an animal control supervisor, with the latter position filled by promoting a current animal control employee.

The new budget also includes 2% cost-of-living raises and up to 4.5% merit-based raises for all full-time employees.

The new budget year, which begins on Oct. 1, will mark the ninth consecutive year with the 3.83 rate in place.

The rate of 3.83 mills per $1,000 of taxable property is equal to $383 per $100,000 of property value. Because of higher property values, many property owners will see higher tax bills.

The new budget is $38.7 million, or 6%, more than the existing one. Next year’s spending plan includes 26 new positions, primarily in parks and tourism. The additional workers will bring the total number of employees under the commission’s purview to 1,125.

The new budget also includes 3% cost-of-living raises for all employees.

Near the end of Tuesday’s final budget public hearing, longtime County Administrator John Hofstad told the commission that he and county staff “want to thank this board for your guidance and leadership in developing this budget. For me, this is my 11th year working with you to pull the budget together. You continue to hold the line on the tax burden for the citizens of this county. That is greatly appreciated.”

The commission began serving as the district’s governing board in June 2024, after District 4 state Rep. Patt Maney, R-Shalimar, reported that the district had not filed an audit for three years and needed more oversight.

On June 13 of last year, Gov. Ron DeSantis signed a Maney-sponsored House bill into law, changing the district from an independent special district to a dependent special district of the county.

Shortly after the bill took effect, the commission agreed to temporarily suspend the operation of the district. Since then, fire coverage and medical services for the unincorporated area of Dorcas, which stands 9 1/2 miles northeast of Crestview, have been provided by the Crestview Fire Department and the North Okaloosa and Almarante fire districts.

Expenses of the Dorcas Fire District “are currently much lower due to the coverage from the other departments,” county Public Safety Director Pat Maddox said in a report to the commission. “However, this will quickly change as we move to make the department operational again and add some core staffing. Formerly, the department was entirely volunteer and so any staffing alone will begin to materially affect the budget.”

The district’s operating revenue comes from assessments, grants, and earned interest.

“Based on the initial funds we received when we took over the district and the net revenues since then, we have been able to accumulate various reserves that will be invaluable in getting the district started back up,” Maddox said.

Fiscal ’26 starts on Oct. 1. The district’s new, commission-approved budget totals $700,021. Expenses include those for an array of new equipment, as well as $235,700 in personnel costs.

County staff received the commission’s approval to hire a fire chief immediately and a fire captain next March, at approximately the halfway point of FY ’26.

“These positions will be responsible for command level evaluation of assets and needs, station, equipment and operational readiness, recruitment of volunteers and standing up the operation behind the scenes while the current interlocal agreement (with other fire service providers) draws down,” Maddox said. “At a point to be determined, the interlocal agreement will end and the Okaloosa County-led fire service will take over.”

Currently, each of the properties is served by a septic tank. Benjamin Street is located southwest of downtown Crestview.

On Monday, the City Council approved paying almost $177,000 in state appropriations to Pensacola Concrete Construction Co. for the septic-to-sewer project. Of the four companies that submitted bids, Pensacola Concrete was the lowest bidder.

The company’s tasks will include the installation of approximately 1,210 linear feet of 2-inch low pressure sewer force main, which will discharge into an existing gravity sewer manhole on Benjamin Street, according to city information.

The work performed by Pensacola Concrete is anticipated to take about 90 days, city Public Services Director Carlos Jones said.

The city also has state funding to pay for the installation of grinder pumps, which are a type of sewage pump, on the Benjamin Street properties. While the city intends to eventually have all the 10 properties connected to the sewer system, only two of them currently have agreements to do so.

City officials expect the purchase price to be around $1 million, which potentially could be financed via bond money, City Manager Jessica Leavins told the council.

“There would be some additional refurbishment cost,” Leavins said. “I’m hesitant to go too far into the property (details) because real estate, you know, is all about negotiations, right? But if the council is interested, if there’s some consensus, we will move forward and then we’ll be able to bring back an agenda item next month.”

The council unanimously agreed to move forward with the possible purchase. The next regular council meetings are scheduled for Sept. 8 and 22.

“Considering that it is (an) existing (facility), and that even purchasing it with (refurbishment) is going to be so much cheaper than the alternatives that we had already discussed, I say move forward with it,” Councilor Dusty Allison told Leavins.

In July, council members backed away from pursuing the construction of a major city sports complex after learning it could cost more than $100 million and require a large millage rate hike to help pay off the resulting debt.

“Any positive improvement for our young people, I would support,” Councilor Shannon Hayes told Leavins during Monday’s discussion. “I’m sure whatever (existing facility) you’re looking at, it would be adequate. When you give us more details, we can make a decision.”

The potential purchase of the existing facility is “kind of a bridge to get us to a point where we can financially do something even more” to enhance recreation opportunities, Mayor Pro Tem Doug Capps said.

Unlike the decades-old Twin Hills Park gym, the facility the city is looking to acquire is climate-controlled, Leavins said. On another note, she said city staff members and consultants continue making progress toward the goal of adding more city ballfields.

City staff members “believe that there’s going to be some drawings coming back to us very quickly to prioritize some master planning, which would determine the overall cost to add some fields,” Leavins said. “We’re looking at how we can add those fields at a price point that we’re all happy with.”

In an email to the News Bulletin, the resident said that on Aug. 1, the Clerk’s Office switched to a new company for online foreclosure auctions.

“We used to pay a flat $60 auction fee for each property sold,” the resident said. “With the new Bid4Assets company, it’s now .5% of the sale price! So, if I win a $200k property at auction the fee is now $1,000! I don’t know why they switched but it’s not legal. The statute says they can only charge a maximum auction fee of $70.”

The resident cited the state statute that reads: “If the sale is conducted by electronic means, as provided in s. 45.031(10), the clerk shall receive an additional service charge not to exceed $70 for services in conducting or contracting for the electronic sale, which service charge shall be assessed as costs and paid when filing for an electronic sale date.”

In an email sent on Thursday to the News Bulletin, Embry said the Clerk’s Office did switch contractors related to the online auctioning of foreclosed properties in Okaloosa County.

“There are a multitude of reasons for us terminating our relationship with the previous vendor, the biggest one being the unsustainable increases in fees being charged to the Clerk’s Office for their service,” Embry said. “Essentially, public tax dollars were being expended to sell and/or advertise foreclosed properties under the previous contractor because the $70 statutory fee no longer covered the actual costs incurred by the Clerk’s Office in the on-line foreclosure sale process. Additionally, the Clerk’s Office was expending significant time and resources managing monetary accounts for bidders.

“The current contractual arrangement requires the third-party individuals or entities using and/or participate in the process to bear the cost of the service, rather than the tax paying public. Additionally, the current contractor manages the accounts for people bidding on properties, rather than our county-funded finance department. This is essentially a no-cost contract for the Clerk’s Office that substantially reduces the expenditure of taxpayer money and other resources from being expended unnecessarily.”

Embry noted that the 0.5% convenience fee charged by the new contractor only applies to successful third-party bidders and is in line with the current statute.

“It is significant to note that plaintiffs in foreclosure actions who end up being the successful bidders at the online foreclosure sales are exempt from this convenience fee,” he said, adding, “The third-party bidder convenience fees are charged and retained entirely by the contractor, not the Clerk’s Office. This is something that has been reviewed and approved by legal counsel.

“While I understand that there are some people that are upset over this change, my ultimate goals are to find ways to reduce costs to our taxpayers and maintain the highest level of service to our citizens.”

Beasley Park, 1550 Miracle Strip Parkway, currently has 203 parking spaces, and Marler Park, 1275 Santa Rosa Blvd., currently has 79 parking spaces, as well as 24 boat trailer spaces.

County officials plan to have 151 parking spots added to Beasley Park, bringing its total to 354, and 134 parking spots added to Marler Park, raising its total to 213.

Construction of all the new spaces will begin in about a year, county Public Information Officer Nick Tomecek said today.

At its regular meeting today, the Okaloosa County Commission approved paying HDR Engineering almost $183,000 to provide engineering services, construction bid documents, permitting services and related work for the parking lot expansion projects. Last year, the county paid the Omaha, Nebraska-based engineering firm $22,790 for a task order to investigate the feasibility of adding and/or expanding parking at multiple locations, including Beasley and Marler parks.

“From that task order, viable parking options were identified and staff would like to move these concepts forward to construction,” county Tourism Development Department Director Jennifer Adams said in a report to the commission.

County tourism development tax money will be used to pay for the nearly $206,000 total cost of HDR Engineering’s services.

Currently, Beasley Park is completely full at certain times of the year and is expected to see more visitors when the county’s Bridge to Bridge Multi-Use Path opens, according to Adams.

The 4-mile path, which could officially open in mid-to-late September, runs along the south side of Miracle Strip Parkway (U.S. Highway 98) and between the Brooks Bridge over the Santa Rosa Sound and the Marler Bridge over the East Pass next to Destin.

The path, which contains photoluminescent stones that glow in the dark, is meant for walkers, runners, and bicycle riders only. Unfortunately, county officials continue having to ask motorists to stay off the path.

Adams said the additional parking areas at Beasley Park will be located between Miracle Strip Parkway and the existing parking lot, as well as the area between that lot and the Welcome Center.

“Vehicular access to these new parking areas will be from within the existing parking lot,” she said. “The addition of pedestrian walkways, re-orienting the existing parking to 90 degree (perpendicular) parking, and minor modifications to the existing parking lot pavement are also proposed to in crease parking between these areas. There is no proposed impact to the nearby dunes.”

Adams noted that the existing parking lot at Marler Park is often full.

Construction of the new Brooks Bridge, which could be completed in mid-2027, has tempered use of this park somewhat, but once the new bridge opens the park “will be a center of activity with a new large playground, family picnic area, beach area, and vicinity to the convention center and boat ramp,” Adams said. “This additional parking will support current demand at the park and support the new playground, a new splash pad and integrations into the trails. Vehicular access will be from within the existing internal roadway.”

The addition of a pedestrian walkway has also been proposed for Marler Park, she said.

The Okaloosa County Commission today approved spending almost $800,000 in federal money on the construction of 5-foot-wide sidewalks along Stillwell, which runs past properties in the city limits of Crestview and in unincorporated Okaloosa County.

In a project expected to last 5 1/2 months, Chavers Construction Inc., of Cantonment, will build sidewalks on the south side of Stillwell, which extends 1 1/2 miles between State Road 85 to the west and Monterrey Road to the east.

The sidewalks will be built along a 0.9-mile section of Stillwell between SR 85 and Valley Road and a 0.2-mile segment between Monterrey Road and the east side of Walker Elementary School. Existing sidewalks run along a 0.4-mile portion of Stillwell between Valley Road and the school’s east side.

County officials have received $796,732 in federal funds via a Florida Department of Transportation grant for the construction of the sidewalks. Among seven companies that submitted bids for the project, Chavers Construction provided the lowest responsive, responsible bid.

In a separate but related vote, the County Commission approved spending up to a little more than $229,000 in county half-cent infrastructure sales tax money for other aspects of the overall sidewalk project. This money will pay for a construction contingency, help cover Construction Engineering & Inspection costs, and pay for repairs to a wooden pedestrian bridge by Walker Elementary School.

The bridge, which is located on the existing sidewalk section between Valley Road and the school, has fallen into disrepair since the FDOT grant application was submitted several years ago, according to interim county Public Works Director Scott Bitterman.

The Arts & Learning Center will stand in a leased space that is next to Desi’s Downtown Restaurant and previously housed a Connect With Flowers store.

During a recent survey, Hub City residents indicated a desire for more opportunities that feature family activities downtown. In addition, Crestview Public Library officials have expressed a desire for additional space for classes and programs, such as English as a Second Language classes and pre-school story time, according to city information.

The space for the Arts & Learning Center has room for displays and a dedicated classroom area, which could be used by entities such as the nonprofit, Fort Walton Beach-based Emerald Coast Science Center.

On Monday, the Crestview City Council approved paying $126,650 to Shepheard Development LLC, of Crestview, to renovate the space and make it ADA-compliant. The council also approved paying $43,000 to Colson’s Electric, of Crestview, to provide electrical services for the renovation project.

Mayor Pro Tem Doug Capps had an excused absence from the meeting.

The renovation project is expected to begin this month and be completed by mid-October.

City Community Redevelopment Agency money, a contribution from the building’s owner, Crestview Investment Corp. LLC, and a city Public Services Department in-kind contribution will cover the total project cost.

After the council meeting, City Manager Jessica Leavins told the News Bulletin that a financial institution has offered to pay the $66,000 total cost of a three-year lease of the space at 189 N. Main St. She said the name of the institution will be publicly shared at the Aug. 25 City Council/CRA meeting, which starts at 5 p.m. at City Hall.

In other business on Monday, the council approved paying $752,176.84 to Chapel Branch and Lagniappe LLC, of Chipley, to expand the parking lot and make other upgrades at the Blackwater Golf Club, 4927 Antioch Road.

During the project, which is expected to last about seven months, the parking lot will receive a net gain of 75 parking spaces. The overall project includes clearing and grubbing, asphalt and concrete paving, drainage and curb and gutter work, new striping and signs, landscaping and irrigation work, and construction of a new cart barn.

Okaloosa County Tourist Development Tax and city General Fund money will be used to pay for the overall project.

Besides erecting other roadblocks, Senate Bill 180, which was recently passed by the Florida Legislature and signed into law by Gov. Ron DeSantis, prevents Okaloosa County from implementing any of the recommendations from the nearly $1 million North Okaloosa Planning Study.

Last October, the Okaloosa County Commission acknowledged receiving the study’s final report. The study, which was conducted by Inspire Placemaking Collective, of Orlando, and is also known as the Inspire study, aimed to help guide growth in the unincorporated area north of the Eglin Air Force Base reservation.

Early in the study process, then-county Growth Management Director Elliot Kampert said the county intended to use the study’s final report as the basis of substantially updating the county’s comprehensive plan, which serves as a blueprint for growth.

“When it comes to future development, “There is a glaring need for clarity in the existing comprehensive plan about what’s allowed and what’s not,” Inspire President George Kramer said last August at a town hall session on the planning study.

While the commission acknowledged receiving the study’s final report, it did not vote on going forward with any of the report’s recommendations, such as phasing out conditional density allowances within the county’s Agriculture and Residential Rural land use designations.

Because of SB 180, action on such recommendations will not occur anytime soon.

Analysis of the bill

On Friday, Watkins, who lives just north of Crestview and is a passionate advocate for protecting the north county’s rural and agricultural areas, shared an analysis of SB 180 by Richard Grosso, a land use attorney in the Broward County city of Plantation.

Grosso prepared the analysis for the Tallahassee-based nonprofit, smart-growth advocacy organization called 1000 Friends of Florida.

The new bill “has an immediate and drastic impact on the authority of local governments to amend their comprehensive plans and land development regulations, or issue development orders with conditions opposed by any person or entity,” Grosso said in his analysis. “This new law, which went into effect on July 1, 2025, is extremely limiting. Section 28 of the law, citing federal disaster declarations for Florida counties from Hurricanes Debby, Helene and Milton, immediately renders ‘more restrictive or burdensome’ comprehensive plan and land development code changes adopted by every local government in the state of Florida after July 31, 2024, subject to judicial invalidation, and precludes local governments from adopting such measures until October 1, 2027.”

He said all 67 of Florida’s counties were identified in a federal disaster declaration for at least one of Hurricanes Debby, Helene and Milton, which struck Florida last year.

“Each of those 67 counties, and every city within every county, is subject to the Section 28 prohibition,” Grosso said. “Going forward, whenever a future hurricane makes landfall, the law’s prohibition on new substantive restrictions or procedures that are more restrictive or burdensome will kick in for any counties within 100 miles of the track of the storm (and their cities) and last for a year.”

A ‘bad bill’

Watkins said by approving SB 180, the state took away the power of residents and their local government officials “to control planning and zoning as well as your opportunity to provide input on development and planning during the public review process on such matters. This was a bad bill and needs to be repealed or modified.”

Watkins urges residents to “talk this over with your state representative and senator to make sure they support either repealing this bill or at lease making major modifications to the worst parts.”

At an Okaloosa County Commission meeting in March, District 3 Commissioner Sherri Cox told residents the commission did address the Inspire study.

Because of the Bert Harris Private Property Rights Protection Act “and the restrictions that it gives us on how we can implement the Inspire study legally, we had asked collectively to put this on our (2025 state) legislative priorities (list) so that we could put it before the Legislature,” Cox said.

SB 180, however, prevents the county from implementing the study until at least Oct. 1, 2027.

Grosso’s full analysis of the bill is available online at https://1000fof.org/wp-content/uploads/2025/08/SB-180-detailed-grosso-analysis-.pdf.