St. Petersburg officials are warning that Gov. Ron DeSantis’ property tax reform proposal could punch a multimillion-dollar hole in the city’s budget, putting libraries, parks, homeless services, affordable housing subsidies and community programs at risk.
In an analysis shared with members of the Pinellas County legislative delegation, the city estimated that the proposal would cost St. Petersburg about $38 million in ad valorem revenue in the 2028 fiscal year and $75 million in the 2029 fiscal year. The estimate offers an early look at how St. Pete could be impacted by the proposal, which is still being negotiated by the Legislature.
The Governor has pitched the plan as a way to deliver major relief to Florida homeowners, arguing that local governments have benefited from years of rising property values. His proposal, branded “Save Our Homes from Excessive Property Taxes,” would increase the homestead exemption and require local governments to use remaining property tax dollars for core public needs.
But in St. Petersburg, officials say the math could force difficult choices across city services.
According to the city, St. Petersburg’s fiscal policy requires all ad valorem revenue to first go toward police and fire services. In Fiscal Year 2026, the city collected about $228.9 million in total ad valorem revenue. After transferring $26.5 million to the city’s three tax increment districts, the remaining $202.4 million covered about 92% of public safety costs. The remaining 8% was covered by other general fund revenues, such as sales taxes.
That means any major reduction in property tax revenue would require the city to “significantly reduce services outside of Public Safety and implement increased use fees to maintain a balanced budget,” per the analysis.
St. Petersburg officials said the proposal could put community enrichment programs at risk, including city library, senior center, athletic and recreational facility operations, and mowing and maintenance at local parks.
The city also flagged the impact on homeless services, including city contributions to St. Vincent de Paul, Pinellas Safe Harbor and Pinellas Hope, as well as services for seniors and people with disabilities like Meals on Wheels. Support for the Florida Orchestra, the Arts Conservatory for Teens, museums and individual artists could also face pressure.
The city also said youth employment and crime prevention programs could be affected, including programs such as Forward Together, CALL and Safe Summer, the Future Ready Academy and literacy programs.
The city indicated other functions potentially at risk could include traffic signs, signal control, street lighting, engineering records, maps, GIS, planning and zoning services, code inspections and compliance, legal services, procurement, human resources, customer service, historic and environmental preservation, intergovernmental coordination, management of city property, and economic development and redevelopment coordination.
Meanwhile, residents and community groups could also feel the impact of rising costs of living through higher user fees. The city said reform could result in higher fees that extend to parks, libraries, waterfront spaces and parking.
The city said it currently charges below-market rates for graduation ceremonies, proms for Pinellas County high schools and community events such as Tim Tebow’s Night to Shine. Under the proposal, officials said those event space costs could double or triple.
Affordable housing could also take a hit. St. Petersburg officials said the city could need to reduce affordable housing subsidies if property tax revenue is cut by voters in November.
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