Property tax reform legislation on the November ballot could cut the City of Longwood’s future budget by millions.
The City of Longwood’s current budget proposal for the next fiscal year is $72 million, 6.2% more than last year. But as the budget increases, city manager William Watts, says the current property tax proposal on the upcoming ballot could reduce revenue by $4.4 million by fiscal year 2028.
“According to data received from the Seminole County Property Appraiser’s office the total estimated Ad Valorem Revenue Impact for Longwood (2027 & 2028) would be $4.4 million,” if the amendment passes, Watts said.
The legislative bill, HJR 1-F, created Amendment 3 which, if adopted by 60% of voters in November, would increase the state’s homestead exemption to $150,000 in 2027 then to $250,000 exemption in 2028, leading to property tax cuts for residents. That means less money going back to county and municipal governments through property tax revenue.
“To prepare for this uncertainty, staff will continue evaluating operational efficiencies, grants, legislative appropriations, alternative revenue sources, non-ad valorem assessments, and periodic user fee adjustments while maintaining the high level of service our residents expect,” Watts said in the city’s proposed budget book.
A different estimate from the Florida's Office of Economic and Demographic Research breaks the revenue losses down by year for every government in the state. The data shows Longwood would lose $1.9 million in fiscal year 2027-2028 if the amendment passes.
That would increase to an additional $3.2 million the next year and continue to climb. After five years, in 2032-33, the loss would reach an additional $4.4 million. While the state’s loss estimate is calculated differently than Longwood’s projections, one thing is clear – a potential shortfall revenue.
Even with the potential loss on the horizon, Longwood is planning for e major investments for the upcoming fiscal year, including a 4% salary increase for non-union employees, continued work to build the new Fire Station 15 location and improvements for the city’s stormwater, potable water, and wastewater systems.
Funding is also planned for things like the Advancement of the Water Treatment Plant Modernization Project through the State Revolving Fund and improvements to sidewalks as well as roadways.
Two public hearings will take place on Thursday, Sept. 3 at 6:00 p.m. and Monday, Sept. 14 at 6:00 p.m. The budget will go into effect on Oct. 1.
Watch the first City Commission Budget Work Session here.
Revisions in the proposed budget book will be made before the last commission meeting where the budget will be adopted on September 21.
