City Budget in Sebastian, Florida

The City of Sebastian's draft FY 2026-27 budget book, dated September 8, 2026, sets General Fund spending at $20,599,456, up 0.2 percent from the amended FY 2025-26 budget of $20,568,323 (draft FY 2026-27 budget book).

Sebastian's fiscal year 2026-27 began on October 1, 2026. As of October 11, 2026, the city's Budget Information page still lists the Fiscal Year 2025-2026 Approved Budget Book as the current document and the draft fiscal year 27 budget book, dated September 8th, 2026, under draft documents, so the figures on this page come from that September draft; the adopted book had not yet been posted.

The General Fund pays for Sebastian's everyday government: police, roads, parks, the cemetery, planning and the City Hall offices. The draft projects General Fund revenues and transfers of $20,336,399 against that spending, leaving a planned $263,057 drawdown of fund balance, the reserve use behind the year's tax debate. Separate enterprise and special funds carry the Stormwater Utility, the Sebastian Municipal Golf Course, Sebastian Municipal Airport and the Building Department, which pay their own way from fees, grants and charges rather than from the city's general property tax (draft budget book).

For 2026-27 the Sebastian City Council moved to the rollback rate of 3.3318 mills and covered the gap with reserves (Vero News; Sebastian Daily).

The Taxpayers Association of Indian River County, in budget statements published by Vero News on September 1, 2026, said it supports Sebastian's service and capital priorities but opposes using reserves to finance recurring operations after adopting the 3.3318-mill rollback rate. Sebastian Daily reported on October 6, 2026 that the council balanced this year's budget in part by spending reserves so it could adopt a lower tax rate, a choice that became an issue in the council race (Sebastian Daily).

The 2026 decision reversed the approach of a year earlier. In September 2025 the council raised Sebastian's millage from 3.195 to 3.445 for FY 2025-26, when the city's taxable property value reached $2.5 billion, up 7.4 percent; City Manager Brian Benton warned then that switching to the rollback rate would require more than $1 million from reserves (Sebastian Daily, September 18, 2025). Each mill is $1 of city tax per $1,000 of taxable value, so 3.3318 mills on a home with $200,000 of taxable value works out to about $666 in city tax before other levies on the Indian River County bill.

Property taxes are the largest single source for Sebastian's General Fund. The draft book budgets $8,440,908 in current ad valorem taxes for FY 2026-27, out of $14,203,583 in total taxes and franchise fees, which also include electric, water and gas utility service taxes and franchise fees (draft budget book).

Beyond the property tax, Sebastian's General Fund leans on utility service taxes, franchise fees and state shared revenue, while a separate county sales tax fund pays for most of the city's construction (draft budget book).

The discretionary sales tax is the additional one-cent tax levied by Indian River County and shared with participating cities by population, and Sebastian may spend it only on infrastructure, land for recreation or preservation, land improvements and emergency vehicles. The budget book estimates Sebastian's FY 2026-27 share at $5,194,125 and notes that voters extended the tax by referendum in FY 2016-17 until December 31, 2034. Several General Fund operations, including Police Operations and Roads and Maintenance, carry equipment lists marked to be funded by that sales tax (draft budget book).

Staffing explains most of the spending. The draft lists 134 full-time and 11 part-time General Fund positions for FY 2026-27, with Police Operations the largest unit at 39 full-time positions, and the five Sebastian City Council seats counted as part-time positions (draft budget book).

Sebastian's draft capital improvement program schedules $11,059,135 in projects for FY 2026-27 and $61.9 million over six years, with roads, the airport and drainage taking the largest shares (draft budget book).

Most of that money does not come from the Sebastian property tax. The draft lists $4,779,763 from the local discretionary sales tax and $4,418,132 from grants and loans for FY 2026-27, against $58,595 from the General Fund; the Riverfront CRA, recreation impact fees, the local option gas tax and the airport and golf funds cover the rest. Community Development's capital list includes demolition at 1540 Indian River Drive, on the Sebastian riverfront (draft budget book).

Sebastian's budget starts with the City Manager, passes through a citizens advisory board and council workshops, and is adopted at two September public hearings before the fiscal year begins on October 1 (City Manager).

The City Manager prepares the annual budget, and the Administrative Services Department serves the council and management as financial manager, budget officer and accounting manager (Administrative Services). The seven-member Citizens Budget Review Advisory Board, with two alternates, reviews the proposed budget and makes recommendations to the City Council (Citizens Budget Review Advisory Board); in 2026 its agendas ran from February 9 through August 3.

The 2026 calendar shows the sequence. Sebastian held three property tax workshops in the City Council Chambers at 1225 Main Street on February 24 and 25, 2026 to explain how city taxes pay for police, streets, sidewalks, events and parks (Sebastian Daily). FY 26-27 council budget workshops followed on July 15 and 16, and the first public hearing on the millage and budget was a special meeting on September 14, 2026 (Agenda Center).

After the year closes, results are audited. The Financial Statements archive holds Annual Comprehensive Financial Reports back through 2011, the latest for 2025, and separate basic financial statements for the Riverfront Community Redevelopment Agency. The city's City Financials page adds the monthly payments register and disclosures for its one defined benefit plan, the City of Sebastian Police Officers' Retirement System.

Last verified: October 11, 2026, on the City of Sebastian website.