Sanford officials consider budget cuts after Amendment 3 reduces property tax revenue

Sanford city commissioners are evaluating budget cuts following the passage of Amendment 3, which increased Florida's homestead exemption and is expected to reduce property tax revenue for local governments, FOX 35 Orlando reported. City officials estimate the amendment could cost Sanford about $15 million in property tax revenue over the next two years, creating an 18% budget gap.

During a recent commission meeting, leaders noted that most Sanford precincts voted against the amendment, but city officials must now prepare for its financial impact. Commissioner Claudia Thomas expressed concern that residents will suffer the consequences of a statewide vote.

Sanford has already implemented a strict hiring freeze as department heads review spending and seek ways to reduce expenses. Interim City Manager Craig Radzak said the city is trying to get ahead of budget challenges, especially if a proposed fire assessment fee is not approved.

Commissioners discussed potential cost-saving measures including cutting travel to Florida League of Cities meetings, reducing public arts funding, auditing city positions, and offering early retirement incentives similar to those used during the Great Recession. The proposed fire assessment fee, which has faced resistance before, was also considered as a way to address the revenue shortfall.