I hope you enjoyed your summer! With the school year underway, the city is alive with activity.
The start of schools also comes with the additional expenses families incur. Our country faces a serious affordability crisis involving housing and family necessities. So, the debate has focused attention on what state and local governments can do and whether we have been good stewards of the tax dollars entrusted to us.
Fort Lauderdale has worked steadfastly to be fiscally responsible as we address our residents’ most important needs as well as to improve our overall quality of life.
Blaise Ingoglia, Florida’s chief financial officer and leader of the statewide DOGE project to examine local spending, complimented our city for being a “good steward of taxpayer dollars.”
The Legislature placed a measure on the November ballot that would fundamentally alter property tax exemptions. If approved by voters, it would reduce property taxes for residential homeowners. It would also significantly reduce revenue available to fund local government and to provide the services you depend on.
It is estimated that the measure would cut property tax revenue for Fort Lauderdale by $17 million in its first year and $27.3 million in its second as the homestead exemption grows. While the city loses that money, the average homeowner would save about $824 in city taxes.
I share the Legislature’s concern about affordability and tax reform. As mayor, I have championed initiatives to encourage construction of more affordable homes and have ensured that our tax rates are as low as possible. The city of Fort Lauderdale has one of the lowest millage rates for a city of its size in the entire state. And, it has not raised the rate for the past 20 years.
In preparation for the possibility of a cutback in property tax revenue, the city has analyzed the tax reform-ballot measure’s possible impact on services and the steps the city may have to take to maintain the standard of services the city’s residents have come to expect.
Property taxes are the primary source of funding for local government services.
Some services have separate funding sources. Water, sewer, stormwater and garbage collection services are exclusively paid for through utility billing. Special service charges fund building permitting, development review and construction inspections. And, the Fort Lauderdale Executive Airport is financed through its own operations, not taxpayer support.
That said, almost half the money that pays for General Fund city programs and services comes from property taxes. The state shares a limited amount of sales tax revenue. Franchise fees, fines and forfeitures provide only small revenue streams. Tourism taxes go exclusively to the county, and Florida has no state or local income tax. State and federal grants have been shrinking and cannot be relied upon for day-to-day operations.
If the initiative passes and the city were to cut services proportionally, it is estimated that the Police Department would lose $9.8 million, Fire-Rescue $6.7 million and Parks and Recreation $3.7 million. All other services and programs would be cut by $7.2 million.
As a result, the Legislature’s proposed tax reform could cut deeply into our ability to fund vital services. These include police protection and the ability to respond to 911 calls as well as fire protection and our ability to jump into action when the alarm is sounded. Other potential impacts are emergency planning for hurricanes, disaster relief and recovery. Our parks could be less supervised and maintained, and we may have to reduce their hours of operation or close some of them.
As the November election approaches, I encourage everyone to weigh the arguments on both sides and, most importantly, vote.
Yours,
Dean
