(Tom is also a parent and an Islamorada resident and taxpayer.)

On November 3, voters in Florida will decide whether to amend the Florida Constitution with Amendment 3, changing the Florida Homestead exemption law.

There are four issues in Amendment 3:

1. Amendment #3 would increase homestead exemptions to $150,000 in 2027 and $250,000 in 2028.

2. New homeowners would get the currently existing exemption. The amendment would create a five-year waiting period for new owners for the full increased homestead exemption, to encourage long term residency.

3. The amendment would limit the increase in assessed value of non-homesteaded properties to a maximum of 5%per year.  Currently it can be increased up to 10%.

4. The amendment would only allow the use of property tax revenue for specific “core services”.

 

Local governments statewide already have been diligently analyzing potential impacts on their budgets. (apparently not Islamorada).

Original estimates from the state predicted Monroe County revenue would decrease about $9 million in FY27 and $17.5 million in FY28.

On Aug. 19, Monroe County Property Appraiser, Scott Russell, provided property value projections to the County Commissioners that were based on his own analysis. 

The Good news: The Property Appraiser’s projections show that overall taxable value would continue to increase, for Monroe County and all local municipalities. 

But not the huge increases in taxable value local governments have seen in recent years. 

There is no doubt the intent of the legislature was to encourage the reduction of local expenses.

But elected officials could either reduce expenses or increase taxes on remaining taxpayers.

Supporters of Amendment 3 argue that Florida homeowners need relief from rapidly rising housing costs and insurance premiums.

Opponents of Amendment 3 worry that impacting the amount of increases in future property tax revenue could lead to service reductions, higher fees, or alternative taxes in the future.

The constitutional amendment was initiated by Governor DeSantis who said: “Property tax revenue collected by local governments has nearly doubled in the past seven years …. Florida homeowners need relief.”

Sad news regarding Islamorada, property taxes:

2019: $10,264,200

2026: $18,264,500 +78% in7 years

2027: $20,632,800, +101% in 8 years (at 2.8 mills as per TRIM notice.)

Chief Financial Officer Blaise Ingoglia (former DOGE director): “The only people who are complaining about it (homestead property tax amendment) are the people who actually have to cut back.  We are on the side of the taxpayers here, right? We’re not on the side of a government who thinks that you are an endless ATM.”

Hear that, Islamorada Council and government?

A Challenging New Budget Process required next year:

There is another bill the legislature passed this year that has not been widely discussed.

HB 1329, signed into law in June 2026, now requires every county and municipality to present a scenariothat shows the impact ofa10% budget reduction before adopting their annual budget, starting next year.  (This is standard practice for federal law enforcement entities.)

On several occasions I had to prepare a 15-20% budget cut proposal as a Federal administrator.

This state law isn’t a suggestion—it’s a precondition for budget adoption.

It requires that the public be advised by our officials as to services that might be delayed or reduced.

AUDIT NEEDED?

Seems clear to us – we need a thorough effectiveness audit in Islamorada.

In my experience the bulk of savings comes from discontinuing and/or combining programs that have been successful or overcome by events. That would include cutting personnel by combining duties and contracting some in house services.

The ICA has been calling for this DOGE-like audit for several years.

We have received no support from several councils and village managers but much support from the residents.

We had predicted this because it made sense. We have NEVER had an effectiveness audit in our history (29 years).

All audits conducted by the village over the last quarter century have been to check for basic arithmetic.

We need a municipal optimization audit that goes beyond standard financial auditing by combining compliance checks with performance, efficiency, and cost-saving improvements.

It must be designed to ensure accountability while also identifying opportunities to improve operations, reduce waste, and enhance service delivery.

Effectiveness Audit

We need this audit NOW in order to be ready to show the possibility of a 10% reduction in expenditures by next September.

It is not an option, Council and Village Manager.

I am told that a council budget “reduction” measure is forgoing a “potential” council salary raise of $20k total per year but not giving voters the opportunity to increase council pay via a charter amendment.

That is laughable… cutting a raise never received?

When the time comes, share potential cuts with the residents. We desperately need some tax relief.

Local governments have been forewarned by the State of Florida:  Stop all the excessive tax increases!

Elections have consequences.

Tom