Panama City Beach City Council members held their first budget meeting tonight and say the city is in good financial shape.
They're heading into the process with some surplus money left in the current budget.
One of the biggest expenditures next year will be building a new police station and a new public works department.
The police headquarters was built in the 1950's.
The department moved into it in 1970, when the city first incorporated.
It's 8,000 square feet, and Chief Drew Whitman says he needs about 20,000 square feet.
Panama City Beach Mayor Gayle Oberst said, "Things are looking good for the city. We are very careful with our money as we always are and that we've been able to survive and move forward."
The two buildings will cost a little more than $8 million dollars.
Most of the money will come from the city's impact fees and the Police Department's general fund.
The entire project should take at least 20 months to complete, but only a year for actual construction, once the city breaks ground.