Blog: If property tax changes are coming, what will follow

We need to prepare now.

If you own a home in Florida, you have likely heard the growing discussion about property tax reform. Like many Floridians, North Port residents are concerned about affordability. Housing costs, insurance premiums and everyday expenses have all increased dramatically in recent years. It is understandable why the idea of lower property taxes is appealing.

In fact, who wouldn't want to pay less in taxes?

The purpose of this column is not to advocate for or against the ballot measure to increase the state's homestead exemption and lower property taxes for many residents. Voters will make that decision for themselves. Our responsibility as local government is to ensure our residents understand what those changes could mean for the services they rely on every day. We must start talking about a plan sooner rather than later.

It isn't a question of whether property tax relief should be considered. But the challenge is that there has been very little discussion at the state level about how local governments will replace the revenue that pays for essential services. It has been mentioned that local governments can raise millage rates, assessments and fees for our residents, which means it's not really a tax cut but a tax shift.

In North Port, property taxes are the primary funding source for our general fund, which supports our police department, emergency medical services, parks and recreation, social services, code enforcement and many other core city functions. While the general fund is only a portion of the City's overall budget, local government finances are not one large bucket of money. Many funds are legally restricted and can only be used for specific purposes. Property tax revenue is one of the few flexible funding sources available to provide the everyday services residents expect.

If the proposed reforms move forward, North Port will face an estimated revenue reduction of approximately $8.8 million as early as next year, growing to roughly $14.5 million in future years. Those are not small numbers that can be addressed through minor efficiencies, trimming salaries or making a few budget cuts around the edges. These amounts of reductions will effectively be defunding the police and fire departments, reducing the number of professional staff needed to respond to life-threatening situations.

We have already begun tightening our belts. As part of the ongoing Fiscal Year 2027 budget process, we have identified several million dollars in reductions to help pay for infrastructure needs that have already been identified. We have carefully reviewed our spending, applied the same principles of efficiency and fiscal discipline that many residents have called for, and kept budget growth in line with inflation and population growth. Considering the same factors of increasing costs that affect your budget, we have balanced our budget the same way. We will always provide the highest levels of service our budget will allow. This reform will not change our mission.

But it is important to be realistic. The magnitude of the potential revenue loss means there is no scenario in which local government services remain completely unaffected.

When government revenues decline significantly, staffing and service levels eventually must be reevaluated. Fewer employees mean fewer services. That is not a threat or a scare tactic. It is simply the reality of how local government works. Our staffing levels have kept up with the tremendous growth of our city and have allowed us to provide the services residents want and expect. That alignment is now in jeopardy, with many employees potentially impacted.

Every service the City provides has been in response to the voice of our community. When residents asked for more parks, we built parks. When they asked for faster emergency response, we invested in public safety. When they wanted stronger code enforcement, improved roadways, recreation opportunities, environmental stewardship or services for vulnerable populations, those priorities became part of the services we provide today. As we look ahead, the conversation is not simply about taxes. It is also about which community priorities residents want to continue supporting in the future.

As these discussions continue, the City Commission will need to revisit its strategic priorities and determine which services residents value most. Those conversations will occur publicly and transparently as part of our budget process. We encourage you to take part, and to learn the facts at NorthPortFL.gov/PropertyTax.

I understand the emotions surrounding this issue. Property taxes are personal because they affect household budgets. But meaningful solutions require more than sound bites or participation in the echo chamber of social media. Math is not emotional. We need thoughtful discussions about how communities will continue funding public safety, emergency response, parks and recreation, planning and zoning and other services that contribute to our quality of life and, in turn, drive economic growth. That is the backbone of our future viability to take care of ourselves by bringing more revenue into the city. That pathway will be jeopardized.

If property tax reform passes, we will adapt and move forward. That is what local governments do. But we must also be honest that significant reductions in property tax revenue will have consequences. The sooner we acknowledge that reality, the better prepared our community will be for the decisions ahead.

Since I have been here, North Port has a track record of responsible financial management and planning over the past nearly five years. We will continue to approach this challenge with transparency, accountability and a commitment to serving our residents. As the conversation evolves, we will continue working with our elected leaders and our community to identify practical solutions that protect both affordability and the services that make North Port a great place to live.

Jerome Fletcher is the North Port City Manager. He can be reached at [email protected].