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Crestview staff warn homestead property-tax change could cut city revenue; council urged to prepare
Summary
City Manager presented staff modeling indicating the statewide homestead property-tax amendment could reduce Crestview's ad valorem revenue by roughly $3.8M (about 30%), while the county's 0.5¢ infrastructure tax renewal remains a key restricted capital source; staff outlined fee and reduction options.
City Manager Levins told the council that staff modeling shows a substantial fiscal risk if the proposed statewide homestead property-tax amendment is approved by voters. "If this passes ... we'll see a 3.8, almost $3,900,000 loss in revenue by year 2," Levins said, noting the city would experience most of the loss in the first year and estimating it as roughly a 30% revenue decline in ad valorem receipts.
Levins contrasted that with the county's 0.5¢ infrastructure sales tax, which is restricted for capital and public-safety projects and would remain available for roads, fire apparatus and other items. He outlined staff options to respond if the homestead measure passes, including raising targeted user fees (recreation, vendor fees, planning reviews), reassessing cost allocations to reduce general-fund burden, reconsidering surplus property sales, and pursuing shared-service agreements. "However the vote goes, we will adapt and overcome," Levins said. Council members directed staff to prepare deeper analyses and public town halls to explain impacts and options ahead of the November ballot.
