DUNEDIN — Dunedin would have to scale back services and could lay off employees if voters approve a property tax exemption increase in November, city finance officials told commissioners at a special budget update.
The measure, known as Amendment 3, would cost the city about $4.7 million in its first year and $7.6 million every year after that, Finance Director Les Tyler said.
Mayor Maureen Freaney said the figures mean commissioners will face “way more gut-wrenching decisions” than they had anticipated.
Tyler presented staff’s Property Tax Reform Contingency Plan, which so far targets $3 million in savings across all departments. A draft will go to the City Commission at a special meeting in early September, followed by a second presentation in late September or early October for commission input and approval.
“The plan will identify reductions by department and potential reductions in staff positions,” Tyler said.
If the referendum fails, staff will still complete a contingency plan, but there would be no layoffs, he said. The city would instead pursue personnel savings through attrition.
The amendment’s first phase, a $150,000 exemption, would take effect in fiscal year 2028 and cost the city an estimated $3.7 million in ad valorem revenue. The exemption rises to $250,000 in fiscal 2029, pushing the annual loss to about $6.1 million.
The city would lose additional money from other agencies that help fund city services: $156,400 from the Pinellas County Library Cooperative the first year and $231,000 annually thereafter; $322,280 from the county’s 12% fire protection revenue the first year and $483,420 annually; and $577,030 in county EMS paramedic reimbursement the first year and $819,930 annually.
Together, Tyler said, the losses total $4,755,710 the first year and $7,634,410 each year after.
Freaney cautioned that the $3 million target tells only part of the story.
“When we talk about a contingency plan in dealing with Amendment 3, we know that over the course of those three years it’s $7.6 million,” she said. “When we do this, we shouldn’t just leave it at that. I look at this and I say to myself, ‘Oh, we’re just cutting $3 million and then we’re good,’ but that’s not true, so I think we have to tell the rest of the story.”
She added: “Because in the other years we are going to have to cut another $4.6 million. In fact, the $4.6 million is going to be way more gut-wrenching than this is.”
Tyler agreed. “Our plan is to present the formal contingency plan at $3 million, but also present to you the other $4.6 million as well, and what we think those impacts will be,” he said. “It will still show a pretty good picture of how much more critical and difficult those will be than the first $3 million.”
City Manager Jennifer Bramley said the plan, including the outlying years, would be ready in September, after commissioners adopt the proposed budget.
Commissioners also reviewed $222,000 in proposed fiscal 2027 funding for civic partners and aid to cultural and social nonprofit organizations. Tyler said that funding could be cut in half if the referendum passes.
The proposal includes $30,000 for the Dunedin Fine Art Center, which requested $50,000; $35,000 for the Dunedin History Museum, which requested $37,000; and $37,000 for Dunedin Cares, which requested $100,000. Another $106,500 is designated for other social and cultural organizations, with $13,500 available to be awarded during the fiscal year.
Other organizations in line for city money include the Dunedin Pipe Band, $7,500; Dunedin Boat Club, $3,000; Dunedin Chamber Foundation, $5,000; Dunedin Community Garden, $1,000; Dunedin Film Festival, $3,000; Dunedin High Junior ROTC, $5,000; Dunedin Highlander Band Boosters, $5,000; Dunedin Highlander Middle School Band, $5,000; Dunedin Public Theater Foundation, $3,000; Dunedin Scottish Arts Foundation, $8,000; Random Acts of Flowers, $3,000; Scottish American Society, $8,000; Suncoast Brotherhood, $3,000; Tampa Bay Ukulele Society, $2,000; and Visit Dunedin, $4,000.
Under the contingency plan, Tyler said, all fiscal 2027 grants approved by the commission — $208,500 — would be cut by 50% if the referendum passes, saving $104,250. Further reductions would follow in fiscal 2028.
Commissioners voiced strong support for the nonprofit funding.
Commissioner Jeff Gow grew emotional during that portion of the hearing.
“What I really like about this part of the budget, if you look at the organizations that are involved, and the services they do, whether it’s mental illness, the History Museum or Fine Arts Center, whether it’s cultural, whether it’s social, these are all good people,” he said. “Good organizations, doing things that the city can’t. There’s no way that the city can reach out and touch the number of people or provide the number of services that these organizations do.”
He added: “I can’t be more proud to sit up here and to know that through synergy and working with community partners, that we can have the impact that we do. ... Thank you for what you do outside of this room, and what you do for the members of our community.”
Commissioner Tom Dugard said he knows most of the groups personally.
“I’ve given my time and some of my money to many of you in this room. I know this community would not be near the place it is today, without the contributions you guys make,” he said. “I’m just grateful to have you here and to be a part.”
Freaney also praised the organizations. “As we move forward with Amendment 3, we’re going to do as much as we can to protect at least some of this,” she said.