Palm Bay city commissioners voted 5-0 on July 17 to reduce the proposed 2027 millage rate from 3.5 mills to 3.2 mills, according to a meeting transcript. The change comes as officials prepare for a November ballot referendum that would cap property tax increases at 3% annually. City Manager Laura Thompson said the adjustment aims to ease the financial burden on residents while maintaining essential services. "We’re balancing the need for stable funding with the reality of rising housing costs," she said during the meeting. The city’s current millage rate is 3.1 mills, which generates about $18.7 million annually for public safety, infrastructure, and parks. The proposed amendment, which would require a two-thirds voter approval, could limit future revenue growth. Commissioner Mark Reynolds warned that if the measure passes, the city might face a $2.3 million shortfall by 2028. "That could mean delaying road repairs or reducing police staffing," he said. The city has already cut 12 positions since 2022 due to declining tax revenues. A 2025 audit showed Palm Bay’s general fund had a $4.1 million deficit, partly due to a drop in commercial property values. The revised millage rate would generate an estimated $17.8 million in 2027, a 1.6% increase over current levels. City staff recommended the lower rate to avoid a potential 2026 tax hike, which could have sparked opposition from residents. The November ballot measure is one of three tax-related proposals in Brevard County. Similar caps are being considered in Cocoa and Titusville. If Palm Bay’s amendment fails, officials may seek a special election to raise millage rates again in 2028. "We’re not out of the woods yet," Thompson said. "This is a temporary fix, not a long-term solution." The city council will hold a public workshop on the proposal at 6 p.m. August 15 at City Hall, 100 N. Orange Ave. Residents can access the agenda and submit comments online through the city’s website.