ORLANDO, Fla. – As Central Florida cities prepare their budgets for the next fiscal year, officials in Orlando and Sanford are warning that a proposed overhaul of Florida’s property tax system could force significant spending cuts if voters approve the measure in November.
During a budget workshop Monday morning, Orlando officials presented their proposed fiscal year 2027 budget, which includes a recommendation to implement a hiring freeze and leave vacant positions unfilled if the property tax reform amendment is approved by at least 60% of voters.
City leaders said property tax revenue already falls about $58 million short of what it costs to fund public safety services.
Under the proposal, Orlando would continue the hiring freeze through fiscal years 2028 and 2029. Mayor Buddy Dyer also said the city may have to cancel projects that have already been planned or approved.
“Programs that residents value may be scaled back,” Dyer said. “And that is not a prediction. Not wild alarmism. It’s the reality of municipal finance. No different than your household budget.”
Later Monday, Sanford city leaders also discussed how they would address a potential reduction in property tax revenue during a budget workshop.
Sanford Mayor Art Woodruff said the city could lose about $15 million in revenue over the next two years if the proposed amendment is approved by voters.
City officials said personnel costs account for roughly 70% of Sanford’s budget, making staffing reductions one of the options under consideration.
To help offset potential revenue losses, commissioners are once again discussing a fire assessment fee to generate additional funding for public safety.
“The fire fee was considered last year because we knew where we were headed,” Woodruff said. “We did not sell it right. It was not received right, but it’s a different day now.”
Sanford commissioners did not make a final decision on whether to move forward with a fire assessment fee, saying there is still time to consider the proposal.
Orlando is scheduled to vote on its nearly $1.9 billion fiscal year 2027 budget on Sept. 28.