Civic Issues
Topics getting the most attention in Panama City public meetings, ranked by how frequently they are discussed.
6 issues with critical priority
Zero-based budgeting study
Commissioner Grainger wants to bring in a consultant (Heron Group, with a Pensacola presence) to shift the city to zero-based budgeting — every dollar justified from scratch each year. It wouldn't change FY2027 but would reshape how FY2028 is built.
Millage rate held steady — but revenue still rises
The city rate stays at 4.7999 mills and the downtown district at 3.0000 — but higher property values mean the combined rate is 2.57% above rolled-back levels, so some property owners will see higher tax bills.
FY 2027 budget reductions and HB 1329 cost-cutting mandate
After a bruising debate over cuts, transparency and employee pay, the city locked in its FY27 budget. The general fund lands at $62.45M with the grant writer and state lobbyist restored, weekly transfer reports coming, and a zero-based budgeting push for FY28.
General fund budget shortfall for FY 2027
The city is spending more than it takes in, and reserves are projected to drop from $4.2 million to about $3 million by September 2026 — below the city's 6.1% policy target. Commissioners discussed finding $3 million in savings before the next budget year instead of raising taxes or making deep service cuts later.
Retroactive water bill credits for estimated billing errors
Residents got hit with huge water bills after new meter antennas revealed two years of under-billed 'estimated' usage — some over $1,000. The Commission created a 60-day lookback window for credits covering July 2023 through October 2025.
Potential elimination of 16 police officer positions
The $4.5 million cut scenario would remove 16 police positions — an entire shift — dropping staffing to 2006 levels. Chief Mark Smith said the department is already next-to-lowest paid in the area and warned officers would leave for higher-paying agencies.