Property tax amendment muddies future fire budgets in North Fort Myers
Special taxing districts say funding loss would affect service
Right now, cities and special taxing districts are looking at what they have gained — or lost — in overall property valuation and are putting their budgets for next year together.
Next month TRIM notices will go out, governing bodies will set and approve their budgets for Fiscal Year 2027 and the tax bill will then come due.
This is how things have operated for years, and it will for this year as well.
However, special taxing districts could be in for a shock come this time next year.
The state of Florida has an amendment on the November ballot that proponents say would provide substantial relief to homeowners facing rising property values — and taxes — as well as inflation and other increased costs.
However, Amendment 3 — which would increase the homestead tax exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028 — would, critics say, also significantly lower state and local revenue for local governments and special taxing districts and strain core services like police and fire.
Matt Caldwell, Lee County Property Appraiser, said things for special fire districts, like North Fort Myers and Bayshore, are particularly complex.
“They are all at or near their maximum millage cap (3.75 mills), so they will either be forced to cut their budget, transition to a non-ad valorem assessment, or pursue merger with neighboring districts in order to expand their cumulative tax base,” Caldwell said in an email.
For special fire districts, this could mean them having to find other ways to raise funds for things they need, such as personnel and a new fire station for both.
Bayshore Fire Chief Doug Underwood said they are fully funded by ad valorem taxes. They would not be excluded from the homestead exemption. Therefore, it would impact their budget.
“Our budget is looking at a potential 40 percent decrease, which would result in a reduction in services unless the governor and legislative branches put in a clause to protect public safety,” Underwood said. “There are a lot of moving parts. Where would we get the funding? We could have a flat fire fee with a stabilized funding supply.”
In North Fort Myers, Chief Jeremy Dunn said the new tax reform bill has created a lot of uncertainty regarding a new fire station No. 4 being planned right now.
“It’s forced us to slow down and take a wait-and-see approach on a new station because the outcome of that may affect our ability to add the additional station,” Dunn said.
Dunn said North has 43 percent of its area in homesteaded properties, which represents about a third of its revenue. If the referendum passes, it could mean a major hit in funding for North.
“We could be looking at a very sizable drop in revenue. It will affect it from top to bottom operationally,” Dunn said. “there’s no solid number, but it’s in the $4- to $6 million range.”
A flat service fee could be the future of many fire districts. However, barring a change in law, this would require voter approval. North and Bayshore both tried this in 2014 when both were struggling after the great recession. Both were rejected soundly by the voters.
Voters in North Fort Myers eventually approved a 3.5 millage rate two years later.
Both districts are expected to see significant residential growth up in the next few years.
That won’t come close to bringing the funding they need without ad valorem tax money or an annual fee, officials say.
Underwood said the bill could result in legislative language that would allow a special assessment without voter approval.
“The voters have the full understanding that this will impact all services. It’ll impact public safety, parks and rec and all constitutional offices, not just certain areas,” Underwood said. “It’ll impact everybody if it passes.”
According to the amendment to appear on the General Election ballot, the exemption for non-school levies would be indexed to inflation from 2029 on. If 60% of voters vote yes, the amendment also would reduce from the annual cap on how much the assessed value of non-homestead properties, such as rentals and commercial buildings, from 10% to 5%, except for school district taxes and would limit how counties and municipalities could spend property tax revenues. Property taxes would be restricted to funding public safety, infrastructure, natural resource projects and flood control, local bonds, employee retirement benefits, and government operations.
To reach CHUCK BALLARO, please email news@breezenewspapers.com