Pensacola Mayor Puts Numbers to Property Tax Proposal — And Says the Math Doesn't Work

Pensacola, FL (NewsRadio 92.3) -- Pensacola Mayor D.C. Reeves is pushing back on the governor's property tax proposal with specific numbers, saying a $250,000 homestead exemption would cut $6.4 million from the city's general fund and there is no legal way to replace it.

Reeves laid out the figures Tuesday at a press conference at Pensacola International Airport. He says under the proposal, 72% of homes in the city would no longer pay any property tax — not because those homes are worth $250,000 or less, but because Save Our Homes has held taxable values down over generations, meaning assessed values are far lower than market values.

The general fund is where the city pays for day-to-day operations. Reeves says 60% of it goes directly to police and fire. A $6.4 million cut — $4 million in year one and $2.4 million in year two as a recurring loss — would effectively wipe out the city's entire budget for all 11 community centers and all maintenance for 95 parks combined. Stormwater operations, street lighting, and intersection maintenance account for another $4 million out of the same fund.

Reeves says state law already limits what other taxes local governments can collect, meaning there is no replacement lever cities can pull. He says raising service fees won't come close to making up the difference and dismissed the idea that the gap could be covered by cutting waste — pointing to a forensic audit completed in the last two weeks that found no such savings available.

He also raised a concern about the city's outstanding CRA bonds from 2017 and 2019, which were issued against future property tax revenues. Reeves says if property tax disappears, the city may not be able to make bond payments — and he questions what that means for the financial institutions that issued them.

Reeves says he's open to modernizing how government is funded, but says cramming that conversation into a three-day special session with no study and no replacement plan isn't reform. He says if services have to be cut, that conversation will happen openly with residents — not behind closed doors at city hall.

The special session runs through Wednesday.