Winter Haven commission warns $7.7M–$10.3M revenue hit if homestead exemption expands; asks staff to scope fire‑assessment study

The Winter Haven City Commission met in a Thursday workshop to review how a proposed state constitutional amendment expanding the homestead exemption could affect the city’s budget and what revenue or service changes the city might consider.

City staff, relying on a county property‑appraiser report, told the commission that an initial increase in the homestead exemption would reduce Winter Haven’s revenues by about $7.691 million in year one and by roughly $10.3 million after full implementation to a $250,000 exemption. Staff said that loss would equal about one‑third of ad valorem tax revenue and roughly 12.15% of a general‑fund budget that staff characterized as about $85 million; ad valorem receipts for the coming fiscal year were shown at about $33.1 million. The presentation also noted there are 12,879 homesteaded parcels in Winter Haven and estimated roughly 92% of homesteaded properties would pay no city ad valorem tax under the proposed exemption.

Those shortfalls, staff warned, would put pressure on core services. "You have to have a safe community," the city manager said, listing police, fire and code as priorities and stressing the difficulty of finding $10 million without affecting services residents expect.

Commissioners discussed replacement options: a modest millage increase, targeted fee changes (parks, franchise fees, communications service taxes), and a fire‑service assessment that would be levied on real property. Staff said Winter Haven’s millage currently is 6.59 mills and cautioned that raising millage would shift burdens to renters and businesses and may be regressive. "If you increase a millage rate... that's going to get passed along to renters," the city manager said during the presentation.

Fire officials and staff described how a fire assessment can be structured. The city’s fire chief (Drew) said an assessment is designed to preserve property value and can fund personnel, equipment, stations and most operational costs while usually excluding advanced life‑support costs. Staff estimated a carefully designed assessment could legitimately recover a substantial portion of fire‑service costs (staff cited an illustrative recoverable figure on the order of millions of dollars) but emphasized the needed methodology would be defined by an independent study.

Commissioners and staff also reviewed Winter Haven’s prior work on a fire assessment. City staff said the commission adopted an ordinance framework in 2015 but never implemented an assessment; implementing one requires a consultant study, ordinance, public notices and hearings and cannot be rushed onto the tax roll overnight. Staff estimated an independent study would likely cost roughly $100,000.

The city attorney, John Murphy, delivered a legal briefing on election‑law constraints. He outlined three statutory prohibitions: a local government may not (1) expend public funds for political advertising or communications sent directly to electors about a referendum, (2) hire others to do that advocacy on its behalf, or (3) accept public funds for that purpose. He noted exceptions that permit factual reporting of official actions and reiterated that elected officials retain personal latitude to express opinions, but cautioned that administrative fines and, in some circumstances, criminal penalties can apply for violations.

After discussion, the commission did not take a formal vote. Commissioners indicated consensus for staff to prepare and return with a scope of work for a fire‑assessment study so the city can evaluate options before November; staff said it would expedite the scope and bring back a proposal for formal consideration. The manager also recommended further workshops in the coming months as legal, fiscal and policy details evolve.

What’s next: staff will draft a scope of work for a fire‑assessment study (estimated cost about $100,000) and return to the commission with a formal proposal; no ordinance or fee will be implemented without subsequent public hearings and a formal vote.