Florida towns weigh budget cuts as property tax debate continues

No more property taxes? Indialantic considers eliminating police call center

In Indialantic, Florida, the city is discussing whether to get rid of its police call center and move dispatchers to the sheriff's office. The police and fire dispatch costs the city around $500,000 per year. This discussion comes after legislators in Tallahassee are arguing to get rid of property taxes. 

INDIALANTIC, Fla. - Small towns across Florida are weighing budget cuts amid uncertainty over the future of property taxes, a key source of local revenue.

State lawmakers in Tallahassee are discussing proposals that could eliminate property taxes, though no final decision has been made. In the meantime, smaller municipalities are exploring ways to offset potential losses that could total millions of dollars.

Local perspective:

In the town of Indialantic, officials are considering shutting down their police dispatch call center and merging services with the county. 

The move, discussed at a recent county council meeting, could save the town nearly $500,000 annually. Currently, operating the dispatch center costs about $500,000 a year; outsourcing the service would reduce that expense to roughly $50,000.

What they're saying:

Mayor Mark McDermott said the plan would allow dispatch employees to retain their jobs by transitioning to positions within the county sheriff’s office.

"We’ll be talking about moving our dispatch department," McDermott said. "By moving our dispatchers now, we’re able to protect their jobs and put them into the county dispatch center."

McDermott warned that deeper cuts could follow if property tax revenues are significantly reduced. Services such as park maintenance and road upkeep could be affected. He added that towns like Indialantic, with fewer short-term rental and investment properties, may be especially vulnerable because they rely heavily on full-time residents for tax revenue.

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"The town may have to dissolve," McDermott said, adding that "all the beachside towns, they’ll be hurting a lot."

Other cities are also preparing for potential changes. In Longwood, officials held a planning workshop Wednesday to evaluate how to balance the budget if property taxes are eliminated. Leaders said property taxes represent the city’s largest source of revenue.

City officials are considering whether to increase fees for services such as permitting to help offset possible losses.

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"All of those services that we provide that have charges associated with them — evaluating if those charges are appropriate, if there’s room to get more revenue that way," a city official said during the meeting.

The future of the proposal remains unclear. A bill to eliminate property taxes passed the Florida House during the legislative session but stalled in the Senate. Gov. Ron DeSantis has called for action and scheduled a special session later this month, though it is uncertain whether the issue will ultimately appear on the November ballot.