St. Augustine officials warn $7.8M homestead cut would force deep service and staffing reductions

St. Augustine city staff told commissioners at a special meeting that proposed state constitutional changes to homestead property taxation could strip roughly $7.8 million from the city’s general fund and force steep cuts to services and staff.

Assistant City Manager Meredith Bridenstine, who led the presentation, said the city’s total 2026 budget is about $99 million and the general fund is roughly $51 million. "A large portion of the general fund is funded by ad valorem revenue," Bridenstine said, and she described the $7.8 million figure as the high, worst-case revenue reduction the city is using for planning purposes.

The estimate comes from staff modeling of several measures under discussion in the state legislature, including HJR 201 (immediate elimination of non-school property taxes on homesteads), HJR 203 (a phase‑out that staff said the House amendment appears to have altered to produce an immediate first‑year reduction), HJR 205 (an age‑65 exemption, estimated locally at about $780,000) and HJR 209 (an additional homestead exemption of up to $200,000, estimated at roughly $4.5 million in lost revenue).

Bridenstine warned that police and fire expenditures are statutorily exempt from the kinds of cuts staff must model, so the remainder of general‑fund programs would carry the brunt of any reductions. Staff listed a long set of departments that would be affected if $7.8 million were removed: city commission, city manager and city attorney offices, communications, human resources and risk management, planning, finance and accounting, information technology, grants, historic preservation and archaeology, fleet maintenance, public works and engineering, community services (homeless outreach, Gallimore Center, events and mobility), facilities and grounds, and event management.

Using the 118 positions the city counts as funded fully or partially by property taxes (excluding police and fire), Bridenstine said the $7.8 million shortfall divided by average salary and benefits would translate to a reduction of about 73 positions. "That would leave us with roughly 45 people in those listed departments," Bridenstine said.

Commissioners pressed staff on alternatives. The City Manager said the city could raise the millage rate, but that increase would not affect homesteaded properties and could only be applied to non‑homestead and commercial properties. Staff also noted that new local tax authority (for example, a food‑and‑beverage tax) requires state approval.

Residents who spoke during the public‑comment period offered competing frames. Susan Gregory said tourism drives asset values and service demand, leaving homeowners with a disproportionate share of funding, and urged the commission to consider ways visitors contribute to service costs. Davania Bell and Jeffrey Leibovitz cited large increases in ad valorem revenue in recent years (Bell said about 55% since 2019; Leibovitz cited a 53% increase), which commissioners and staff discussed; Bridenstine responded that the general fund rose about 42% from $36 million to $51 million since 2022 using the city’s figures.

Vicky Pepper, representing an informal civic action group, urged targeted relief for low‑income households and seniors rather than a broad homestead elimination, warning that shifting local revenue to state‑administered sales tax would be regressive and would undermine home rule.

On program‑level impacts, staff said enterprise funds such as water and sewer are supported by user fees and should not be directly affected, but cuts to internal services (fleet, IT, facilities) could have cascade effects that impair utility responsiveness. The commission also discussed event funding: staff estimated that Nights of Lights and other events generate substantial general‑fund costs (roughly $1.2 million in event-related cost with about $350,000 not reimbursable by tourism development dollars), meaning shortfalls could shift more costs onto local taxpayers.

Staff emphasized that the legislative landscape is fluid — several measures are moving in Tallahassee and, in some cases, amendments have altered the timing or magnitude of reductions — and that a companion Senate bill did not yet exist for some House measures. Bridenstine said more detailed analysis, including per‑household averages from the tax collector and property appraiser, could be provided to the commission.

The commission did not take any formal votes at the meeting; members said they would continue exploring revenue and expenditure options, including further budget meetings focused on revenue sources, user fees and potential ballot measures. The mayor adjourned the meeting after staff and commissioners completed questions and answers.