As they put together and refine Orange City’s spending and taxation proposals for the new fiscal year, the mayor and City Council members are eyeing increases in their salaries.

“I would like to have a discussion about council members and our compensation,” Council Member Anthony Pupello said at the governing body’s Aug. 13 meeting.

The city’s spending blueprint for the 2025 fiscal year that begins Oct. 1 includes pay raises for the elected officials.

“The proposed budget assumes a pay increase of $1,000 a year plus 3 percent, which is $16,448 for the mayor and $13,886 for council members,” City Manager Dale Arrington said.

The 3-percent refers to the cost-of-living increase given to all other personnel on the city’s payroll.

For the 2024 fiscal year now waning, Mayor Gary Blair’s annual pay is $14,969, while each of the council members receives $12,482 yearly.

The idea of a $1,000 boost alone for each member of the council generated some discussion.

“I think $20 a week is not much for what we do up here,” Council Member Kellianne Marks said.

“To some people, $20 a week is a lot of money,” Blair said.

The combined cost of paying the City Council for the coming fiscal year is $167,253, if the elected body adopts the budget, as presented.

“This is what it costs to have our pearls of wisdom coming out of our mouths,” Pupello said. “This is a real cost to our community.”

Of that $167,253 cited above, $100,266 would be the salaries, and $66,987 would cover the council members’ benefits. The benefits include Social Security payments, contributions to the Florida Retirement System, and workers’ compensation.

“I do think it would be unfair to have a council do the work and not be compensated,” Pupello added.

“We work hard up here,” Marks said. “We pay into our retirement.”

Pupello said the council could maybe make cuts in spending. 

In any case, the compensation for the mayor and council members is approximately 0.9 percent of the budget.

As for Orange City’s proposed $18.9 million general-fund budget, a large part of the funding will come from property taxes levied by the City Council. The ad valorem rate now requested by the council is 6.8691 mills, or about $6.87 per thousand dollars of taxable value. 

Although that figure is below the current number, 7.1209 mills, it still amounts to a tax increase, because it is 4.2 percent higher than the rollback rate of 6.5926 mills. The rollback rate is the millage which, if adopted by the governing body, would generate revenues equal to those of the preceding year. The rollback does not take into account new construction or, in the case of cities, annexations. Rather, it is based on steady increases in value derived from rising demand and higher costs of land and construction, including building materials and labor.

The City Council will conduct two public hearings and votes on its 2024-25 budget and property-tax rate during September. The city’s new fiscal year begins Oct. 1.