West Palm Beach officials warn state property‑tax proposals could force cuts to local services

City Administrator Faye Johnson and finance staff told the West Palm Beach mayor and commission that several state joint resolutions under consideration could substantially reduce local property‑tax revenue and reshape the city’s FY2027 and FY2028 budgets.

The session centered on summaries of House and Senate joint resolutions that would expand homestead exemptions, impose percentage reductions in assessed value, or change reassessment timing. City Attorney Kimberly Rothenberg reviewed the proposals and their procedural path, calling out that most measures have three committee stops and that any adopted constitutional amendment would require voter approval. ‘‘It has 3 committee stops,’’ Rothenberg said while explaining the legislative process and the potential for a special session to negotiate broader exemptions.

City Chief Financial Officer Bridget Souffrant presented preliminary estimates based on a Palm Beach County data dashboard and cautioned that the county has revised or removed some figures during its review. Souffrant said the city’s FY2026 data show 45,815 properties valued at just over $24 billion, with homesteaded properties representing 45% and non‑homesteaded 55% of parcels. ‘‘53% of our general fund is made up of property tax revenue,’’ she said, adding that public safety accounts for 58% of general‑fund expenditures. Souffrant stressed that any reductions in property‑tax revenue would likely affect ‘‘quality of life’’ services such as libraries, parks and permitting before reducing public‑safety spending.

Rothenberg and Souffrant listed several specific proposals discussed in Tallahassee. Among the House measures she described were a proposal estimated at a roughly $51.4 million first‑year revenue loss for a broad exemption of non‑school ad valorem assessments on homesteads, a $100,000 homestead exemption phased in over 10 years (estimated ~$12.5 million year‑1 impact), and a 65+ exemption (estimated ~$29.3 million year‑1 and roughly 10,000 potentially eligible homesteads). Other measures would create a 25% reduction in assessed value after certain exemptions, or replace the second $25,000 exemption with a $200,000 exemption for qualifying insured homesteads (estimates provided by staff ranged from about $20.5M to $25M depending on the measure). Staff repeatedly characterized these figures as preliminary and said some county estimates should be viewed as worst‑case scenarios.

Commissioners asked about political prospects, local versus statewide impacts, and next steps for planning. Commission President Lambert and other commissioners urged early and coordinated outreach with the League of Cities and business chambers to explain how the proposed changes could affect city services. Mayor commented bluntly on the potential effect: ‘‘The sky is on fire,’’ a phrase he used to summarize how dramatically local authority and service levels might change if broad exemptions are adopted.

Several commissioners proposed practical follow‑ups. Commissioner Beduzzi asked for comparative data showing whether West Palm Beach would be disproportionately affected compared with other municipalities. Commissioner Warren noted the League of Cities is already coordinating opposition and offered to invite the League’s new executive director for a public presentation. Commissioners also suggested preparing mock budgets showing service‑level impacts under several scenarios and forming a task force or ‘‘war‑game’’ exercise to model disaster‑recovery capacity (for example, hurricane response) under reduced revenue forecasts.

Rothenberg reviewed timing and ballot requirements: if a joint resolution clears both chambers by the required supermajority, ballot language must be finalized in time for the November 3, 2026 general election; special‑session resolutions would need adoption by August 4, 2026, to appear on the ballot. Staff noted that any adopted constitutional change would typically take effect in early 2027 (presentation referenced effective dates such as 01/01/2027 and 01/05/2027 depending on language).

The session closed with agreement to continue gathering refined county data, coordinate with the League of Cities and local chambers on outreach, and consider running specific budget scenarios for the commission to review in the coming months. The commission adjourned without taking formal votes at this work session.