Winter Haven leaders call for budget workshops after state property-tax amendment could cut about $10.4 million

City officials on June 8 said they will schedule workshops to model budget scenarios after staff reported that a proposed state constitutional amendment on property taxes could sharply reduce local property-tax revenue.

"Our estimates based off of data we have from the Pulk County Property Appraiser is it would be about a $10.4 million impact," the city manager told the commission, summarizing staff's analysis of a $250,000 homestead-exemption scenario.

Why it matters: the city takes in roughly $31.5 million annually in ad valorem property taxes; a $10.4 million reduction would represent about a 32% cut in those receipts and about a 12% effect on the city's $79 million general fund, according to staff. Officials said those cuts would likely require difficult choices about staffing, services and capital projects and could ripple across special districts and county budgets.

What staff reported: the city manager and staff described amendments that were considered — and largely removed — during a special session in Tallahassee. The most notable changes reported to the commission included removal of school-dedicated language and removal of a proposed state trust fund to backfill local revenue, while other proposed restrictions on uses of ad valorem revenue were amended. Multiple proposed exemptions and a sunset clause failed in committee, leaving significant uncertainty about final ballot language.

Legal and communications constraints: City Attorney briefed the commission on Florida Statute 106.113, cautioning that the city cannot spend public funds on political advertising or paid campaigns for or against ballot measures but may post factual information and respond to inquiries. "You can't produce and do direct mailings and those types of things," the city attorney said, while noting that factual postings on government websites are permitted.

Council response and next steps: Commissioners urged immediate, staff-led workshops to identify revenue alternatives (fees, charges, millage on nonexempt properties), potential program cuts and the legal limits on civic communications. "The sooner we can get to work on this, the better," one commissioner said, noting the city must be ready to act if voters approve the measure. Staff said impacts would begin to be felt in the FY 2027-28 budget and pledged to return with detailed analyses and options for the commission to consider.

The commission did not take any formal action at the June 8 meeting beyond directing staff to prepare information and recommended workshops; staff also said they would coordinate with county and special districts on regional impacts.