Tarpon Springs advisory board warns of multimillion-dollar hit if county property-tax reform passes

City staff told the Tarpon Springs Budget Advisory Board that county projections tied to a proposed property-tax referendum could cut the city's general-fund revenue by roughly $3.3 million in the first full fiscal year after implementation and by larger amounts in later years, and mapped out a schedule of department reviews and public meetings to respond.

The advisory-board briefing centered on a county-produced projection of the referendum's effect. Ashley, a member of the city's finance staff, said the county estimate would translate to an approximate $3.3 million reduction to Tarpon Springs in fiscal year 2028 and a larger reduction in subsequent years. "At a very simple level, you have three options: increase revenues, decrease expenses or a combination of both," Ashley said, urging the board to weigh scenarios that prioritize preserving positions where possible.

Why it matters: Staff said the city’s preliminary FY27 general-fund expense total is just over $39 million and that personnel costs consume roughly 73% of that fund. Given that profile, they told the board an estimated $3.3 million gap would amount to a mid-single-digit to low double-digit percentage cut across the budget that would be difficult to avoid without trimming staff, services, or both.

Board discussion and staff recommendations: Advisory-board members and staff discussed specific levers. Staff described an immediate first round of departmental cuts already requested, a temporary hiring freeze on new general-fund positions, and a placeholder 18% healthcare-cost estimate for planning purposes while the city goes back out to bid for benefits. The staff presentation highlighted trade-offs: some services—libraries, recreation programs and publicly funded events—do not generate revenue and are therefore likely candidates for reductions if the revenue shortfall materializes.

One city official warned the group about depleted reserves: "Our reserve is way down to a point where I'm not comfortable," the official said, noting the city lacks the cushion it used in prior downturns. Board members pressed staff to prepare clear, factual materials that residents can consult independently because state law limits how the city may advocate for or against the referendum.

Schedule and next steps: Staff said they aim to deliver a working draft of the budget by the 30th, with a series of work sessions planned through July and August and a tentative public hearing to adopt a tentative budget and millage on Sept. 9. Staff told the board they will continue to refine scenarios, keep department heads available to answer questions at advisory-board meetings, and circulate county updates as they arrive.

Public comment: Peter Lack of Tarpon Springs urged staff to prepare plain-language facts about which services and fees would be affected so voters and landlords can assess the downstream impacts on renters and local businesses.

The board adjourned with the direction that staff continue scenario planning, circulate documentation to members, and prepare for supplemental meetings to address the emerging revenue shortfall and its operational implications.