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Dunedin unveils contingency plan as proposed property-tax change could cut $7.6M
Summary
City staff told commissioners Amendment 3/HJR1F could shave about $3.7M from year‑one revenue (growing to roughly $7.6M in later years with roll‑down impacts). Finance staff said a $3M contingency package will be presented in September and higher‑level modeling of deeper cuts is underway.
City finance staff warned commissioners on Aug. 4 that a proposed constitutional amendment on the November ballot would substantially reduce local ad valorem revenue and require major budget adjustments. Les Tyler, the city finance director, said the city estimates a $3.7 million direct revenue loss in fiscal year 2028 and total first‑year impacts of about $4.755 million when roll‑down effects are included; staff projected the full multi‑year impact at roughly $7.6 million.
"The exemption increase to $150,000 in fiscal year 28 results in about a $4,000,000 loss," Tyler said, adding that the $250,000 exemption projected for fiscal year 29 would raise the annual direct city impact to about $6.1 million. He told the commission staff is developing a contingency plan that would identify $3 million in savings across departments and will return with higher‑level options for absorbing the larger multi‑year shortfall if voters approve the measure.
The draft contingency plan is scheduled for initial presentation in early September, followed by additional input sessions. Tyler said staff will identify department‑level reductions and potential position impacts so elected officials can see both the first‑year actions and the more severe measures that would be necessary in later years.
Commissioners pressed for clarity on sequencing and public messaging, and the city manager said the plan will include both the $3 million near‑term package and a more strategic "rest of the story" analysis showing what further cuts would mean to services and capital projects. No formal vote was taken; staff will return with the contingency proposal and related budget amendments.
