Graceville Budget Workshop Draws Scrutiny Over Police Staffing, Phone Costs, and Reserves

Numerous citizens attended the City of Graceville Budget Workshop held on Thursday, September 4 at City Hall. Many of those concerned citizens pressed Graceville officials on over spending priorities—especially a reduced police headcount, rising insurance costs, and a citywide telephone bill some called “egregious”—as the City Commission reviewed a proposed balanced budget for FY 2025–26 totaling $3,896,288 in revenues and expenditures.

City Manager Michelle Watkins opened with a summary of changes: the spending plan includes a 3% cost-of-living adjustment for full-time classified employees, a $500 Christmas bonus, and funding for two contract positions (fire chief and janitorial). On the revenue side, projections are up $27,812 over the current year. The city will hold its millage at 4.000, with ad valorem receipts estimated at $427,168.60, reflecting higher taxable values, Watkins said.

Watkins outlined net changes by department compared with the current year:

•Administration: –$10,941.16 (liability insurance decreased)

•Police: –$62,373.33 (five classified officers budgeted)

•Sanitation: + $15,000 (contract CPI increase)

•Streets: + $73,912.15 (added paving; restructuring moved the Parks & Recreation director into Public Works/Street)

•Fire: + $8,287 (anticipating utility costs at the new station)

•Recreation: –$63,673.80 (position reallocated to Streets)

•Water: + $7,212.80 (reflects actual collections; work camp returned)

•Water Treatment: + $8,000 (chemical costs/testing)

•Wastewater Treatment Plant: + $57,389.35 (higher solids disposal and operating costs)

•Cemetery & Sewer: no change

Most state-shared revenue estimates are provided by Tallahassee, Watkins noted, adding the local option gas tax figure had not yet been updated by the state and remains at last year’s estimate pending a September revision.

On benefits, the city will keep its current employee health plan, despite a $71 per employee per month premium increase. Watkins characterized it as “by far one of the best policies employees have had.”

Regina Wolfgang questioned a $5,000 code-enforcement abatement line and asked who oversees enforcement. Watkins said the cost is budgeted under Administration, while enforcement is handled through the Police Department. Wolfgang also pressed for clarity on salaries shifted from Recreation to Streets and, later, on the volume of $91,000 in annual fittings and pipes purchases; Watkins said Public Works maintains a significant inventory for a system of Graceville’s size. Wolfgang suggested the city explore joining the Florida Local Government Health Consortium to blunt premium hikes; Watkins said Graceville is not a member.

Local IT provider Scott Scurlock criticized about $63,000 in combined telephone costs across departments as “borderline negligent,” claiming comparable cities he services pay far less. He offered to consult with the city, citing the City of Chipley’s annual spend is “around $12,000.” Commissioner Marshall Davis had already flagged the total and asked staff to investigate potential savings; Watkins said she has requested a full line inventory from AT&T and will review options.

During public comment, a question was raised about why approximately $350,000 in CARES Act reimbursement funds for 2020 payroll were placed in operating reserves rather than directed toward police staffing. The funds had been released after the fact for payroll costs that were already budgeted and paid before the federal program was created, with the intent of supporting first responders during the pandemic. City Clerk Misty Smith confirmed the reimbursement amount. City Manager Michelle Watkins said the commission had voted to place the funds into general funds/operating reserves.

Former mayor Jerry Williams called the $91,000 for fittings “unfathomable” and urged a renewed look at the Civic Center, which he said cost $25,000 to operate last year against less than $6,000 in revenue.

He also asked about the Cliff Road closure; Watkins said DOT intends a full bridge replacement and could authorize construction to begin by year’s end, but the city cannot perform interim remediation until that replacement is approved.

Resident Charlene Miller opposed an across-the-board 3% raise, arguing the city should freeze higher-paid positions before cutting police posts and called for a citizen committee to regularly review spending.

Several speakers warned of public-safety risks after the department’s recent reduction to five officers. Tim Welborn predicted increased crime and attrition, urging the commission to restore positions. Later, Chief Jake Barley clarified that operating with five officers would require the sheriff’s office to cover nights.

Commissioners offered differing emphases. Curtis Pinkard said he has placed an item on next Tuesday’s agenda to add one officer, telling residents, “We can find some way to do it…they need backup.” Terry Nichols thanked staff for the work and said maintaining reserves is essential, calling the plan “a budget”—a framework the city can adjust if needed. John McClendon urged the community to “heal” and work together, saying he believed the department could function at five based on earlier conversations, a point interjected upon by residents and clarified by the chief.

City Attorney Frank Bondurant called the document “a good budget.”

After additional back-and-forth, Mayor Walter Olds thanked attendees, encouraged civility, and emphasized weighing both cost and coverage when evaluating employee insurance options.

Publisher’s note: This article was created using the meeting’s transcript. That full transcript can be found in the September 11, 2025 print edition of The Graceville News.

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