Lakeland Commissioners Set to Hold Tax Rate Steady as $14.5M Amendment 3 Risk Looms

Lakeland's property tax rate is on track to stay exactly where it is for another year, even as a statewide ballot measure hovers over the city's books with the threat of a $14.5 million annual hit. All seven city commissioners, including Mayor Sara Roberts McCarley, have signaled they'll vote to keep the rate at 5.4323 mills at a final public hearing set for Sept. 24 at City Hall.

That number matters to anyone who owns property in Lakeland. One mill equals $1 in tax for every $1,000 of a property's taxable value. At 5.4323 mills, a home valued at $100,000 generates about $543.23 a year in city property taxes, before whatever Polk County, the school district and other taxing bodies add on top.

Why the vote needs five, not four

Because the proposed rate sits above what's called the "rolled-back rate," the math isn't a simple majority. State law requires at least five of the seven commissioners to approve it at the Sept. 24 hearing. Commissioners have been discussing the number for six weeks across multiple budget workshops, and city staff say the support has held steady the whole time.

Commissioner Terry Coney told local media he leans toward keeping the current rate as long as the city can meet its budget needs, calling it consistent with Lakeland being "frugal and efficient." Commissioner Mike Musick pointed to a comparison Finance Director Mike Bossart presented showing Lakeland's rate is lower than nearly every similarly sized Florida city, despite Lakeland funding a civic center, a municipal golf course and a minor league baseball team. Musick called that combination "unique" and said keeping the rate flat is "encouraging."

The Amendment 3 wildcard

Florida voters decide the fate of Amendment 3 on Nov. 3. The measure, officially titled "Increased Homestead Exemption; Lower Cap on Increases in Non-Homesteaded Property Assessments," needs 60% approval to pass. If it does, the homestead exemption for non-school taxes rises from $50,000 to $150,000 starting Jan. 1, 2027, then climbs again to $250,000 a year after that. At the same time, the cap on how much a non-homesteaded property's assessed value can increase each year would drop from 10% to 5%.

For Lakeland's budget, city finance officials estimate that combination could cut property-tax revenue by $14.5 million a year once fully phased in.

City property values are still forecast to rise before any of that takes effect. Bossart told commissioners in a July budget workshop that values are expected to grow by about 4.96% in the coming fiscal year, which would bring in roughly $3.08 million in additional revenue at the current rate. That growth is part of why officials feel comfortable holding the line for now, even with a multimillion-dollar question mark sitting on next year's ballot.

City department heads aren't waiting to find out how the vote goes. They've already been directed to draft contingency budgets showing roughly 10% cuts across their operations, in case Amendment 3 passes and the money has to come from somewhere. Commissioners are scheduled to review those contingency plans in October, after the November election results are in.

What isn't yet clear is exactly which city services would absorb cuts if Amendment 3 passes and those 10% reductions become real. That's the conversation commissioners have set aside for October, once they know whether the ballot measure has crossed the 60% threshold.

For now, Lakeland residents can weigh in before the rate becomes official. The Sept. 24 hearing at City Hall is open to the public, and the outcome will shape city tax bills for the fiscal year ahead regardless of what happens at the statewide ballot box in November.

Stay with the Lakeland Community Website for continuing coverage of the city budget and the Amendment 3 vote. Join the conversation in our Community Forum, and catch up on more local government stories or the latest Lakeland news as the Sept. 24 hearing approaches.

Header photo: Connor J. Williams / Wikimedia Commons (CC BY 3.0)