Amendment 3 passes, triggering Dunedin's $3M cut plan

Dunedin could cut roughly $3 million in city services beginning Jan. 1, 2027, after Florida voters approved Amendment 3 on Tuesday, Nov. 3. The proposed cuts still require City Commission approval.

The constitutional amendment, which raises the homestead exemption on non-school property taxes, passed with about 62% of the vote, as reported by the Tampa Bay Times. It needed at least 60% to pass.

The amendment increases the homestead exemption to $150,000 in 2027 and $250,000 in 2028, with inflation adjustments beginning in 2029. It also lowers the annual assessment increase cap on non-homestead properties, such as second homes and businesses, from 10% to 5%, according to the Tampa Bay Times. School property taxes are not affected by those changes.

The expanded homestead exemption does not immediately apply to everyone. People who were not Florida residents as of Dec. 31, 2026, generally must wait until their fifth year of qualifying for a homestead exemption to receive the increased benefit.

What Dunedin could lose first

As we reported Oct. 29, the city published a contingency plan Oct. 28 spelling out what could go away.

Among the largest proposed reductions are a temporary closure of the aquatic complex, saving $528,520; elimination of Saturday library hours and 4.2 full-time-equivalent positions, saving $334,950; and elimination of municipal music programs and certain recreation center events, including band, chorus and summer camps, saving $109,000.

The plan also calls for reducing contractual services for city events, cutting repair and maintenance spending for outdoor restrooms and athletic fields, and eliminating two streets department positions.

Other proposed reductions include cutting civic partner and nonprofit grants by 50%, eliminating the city's solar rebate program, reducing its resiliency and sustainability rebate program, and eliminating its public-access cable television channel.

City Manager Jennifer Bramley told commissioners at a July 21 budget workshop that staff would bring the contingency plan before the commission for action if the amendment passed. The proposed reductions would be implemented through a budget amendment effective Jan. 1.

No cuts have been approved yet. The city presented its contingency plan at a Sept. 17 special meeting and said the commission would review it in greater detail at another special meeting expected in mid-to-late November. The city's Oct. 28 announcement did not identify a specific date.

Bigger losses ahead

The first-year cuts primarily target quality-of-life services. The projected financial losses grow from there.

Finance Director Les Tyler presented figures at an Aug. 4 budget workshop showing estimated revenue losses of roughly $4.76 million in fiscal year 2028 and $7.63 million annually beginning in fiscal year 2029. Those totals include projected losses involving the county library cooperative, fire protection and emergency medical services revenue.

Mayor Maureen Freaney pressed at the Aug. 4 workshop for the full scope of potential cuts to be communicated publicly. She said the additional $4.6 million in future reductions beyond the initial $3 million would have "significantly increased impacts," according to the meeting record.

The city has warned that the first round of reductions would not be enough to offset the full projected revenue losses.

Future cuts under consideration include reducing Pinellas County Sheriff's Office community policing services, eliminating the Clearwater Ferry service between Dunedin and Clearwater, and closing or limiting access to athletic fields.

The city also identified possible elimination of the Santa Fire Truck neighborhood program.

These are potential future reductions, not approved service changes.

Pinellas County and public safety

Pinellas County could lose around $318 million in property tax revenue by 2032, according to the Tampa Bay Times. The county's children's services council could face cuts of about $28 million, according to Michele Watson, head of the Florida Alliance of Children's Councils and Trust.

Those figures are projections rather than confirmed budget reductions.

Pinellas County Sheriff Bob Gualtieri warned before the election that the financial impact could force layoffs.

"I'm telling you, with hard fact, that we will be adversely affected because the numbers speak for themselves," Gualtieri said, according to WTSP. "You can't cut that kind of money without cutting people."

Pinellas' transit authority also warned before the vote that its annual operating budget could shrink by about a quarter by 2029, with approximately 150 positions potentially affected, according to the Tampa Bay Times.

The forecasts illustrate the broader financial pressures facing local governments and public agencies, although the actual reductions will depend on future budget decisions.