DeBary officials warn new homestead exemption proposal could cut city revenue by millions; council outlines options

City Manager Carmen told the DeBary City Council during a June budget briefing that a proposed statewide change to homestead assessment rules could sharply reduce the city’s tax base and force difficult choices in coming years.

Carmen said preliminary spreadsheets from the Valuchia County Property Appraiser show a $150,000 homestead exemption (effective Jan. 1, 2027) would immediately reduce DeBary revenues by about $2.3 million; if the exemption later increases to $250,000, the city could face a revenue gap near $3.8 million. "If the proposal passes November 3rd, what's the impact on our future budget?" Carmen asked rhetorically in the presentation and added that the data come from the county property appraiser’s published worksheets.

Carmen framed the situation as a set of business options rather than a single automatic outcome: the city can (1) shift more of the tax burden to commercial and non‑homesteaded parcels (raising the millage to roughly 5.24 mills in a full‑shift scenario), (2) adopt a non‑ad valorem supplement such as a fire assessment fee, (3) cut services and programs, or (4) use a combination of the above. "We can overcome some of these particular items...in an effective and efficient business manner," Carmen said.

Council members probed timing and impacts. Carmen noted the $150,000 exemption would affect the FY2027–28 budget cycle and that the $250,000 phase would affect FY2028–29; she also described parcel counts and the proportion of homesteaded properties the county spreadsheet lists. Carmen said the city is projecting typical wage increases and planned capital items alongside legislative uncertainty.

Council Member Cell voiced concern about the political context and the burden on local services: "It's very sad... somebody's going to have to pay to keep the lights on," Cell said, arguing that the changes would limit the council’s ability to reduce millage as previously promised. Other council members emphasized the city’s relative fiscal efficiency and noted options such as indexing impact/assessment fees or targeting commercial valuation adjustments.

Next steps: staff will return with formal numeric options during the budget process and at upcoming workshops (manager indicated proposed budget delivery prior to July 15 and tentative millage hearings in September). Carmen said the city will model the four approaches and present discrete revenue/impact scenarios for council decision before final adoption.