Oldsmar council hears multi‑million‑dollar risk from proposed state property‑tax amendments, directs staff to pursue combined approach and consultant

City Manager Felicia Donnelly presented a detailed briefing to the Oldsmar City Council on Feb. 17 about several proposed state constitutional amendments that, if adopted, could substantially reduce the city’s property‑tax revenue.

Donnelly listed measures under consideration in the state Legislature and proposed constitutional referenda, including proposals to eliminate non‑school property taxes for homesteads, phase out non‑school property taxes over 10 years, change homestead‑exemption portability caps, modify assessment‑increase limits and prohibit ad valorem taxes on tangible personal property. "If 201 passes, we're looking at a revenue impact of $3,000,000," Donnelly said, summarizing modeled outcomes and noting that combinations of measures could raise the city’s revenue exposure further.

Donnelly outlined four broad responses for council consideration: Option A, reduce service levels and engage the community to prioritize what to cut; Option B, optimize revenue (including fees and possible special assessments such as a fire‑assessment); Option C, a combination of A and B; and Option D, wait for state clarity. She warned that any fiscal effects would likely show up in FY 2028 budgets and that procurement and public‑engagement work would require time and expense.

Council members largely favored Option C, a balanced approach that would begin revenue‑optimization work while planning community engagement on service priorities. Council members urged the city to move quickly to secure a qualified fire‑assessment consultant because demand for those consultants is growing. "I vote for option C," Council Member Titus Eskew said; Vice Mayor Graeber and others expressed similar support.

As a result, council asked staff to add two separate tentative‑agenda items for the March 3 meeting: 1) authorize the City Manager to procure/advertise an RFP for a fire‑assessment‑fee consultant, and 2) approve a community‑engagement methodology (surveys, workshops and outreach) to determine service‑level priorities if revenues fall. Staff agreed to return with procurement language and a communications strategy. The council approved the amended tentative agenda and then adjourned.

Next steps: staff will draft procurement documents for consultant services, develop a public‑engagement plan for council review and present timelines and estimated costs at a future meeting.