Winter Haven Prepares $371.8M Budget Framework Amid Concerns Over Statewide Tax Amendment
By James Coulter
Even as Winter Haven anticipates higher property values and stronger ad valorem revenue, city commissioners are worried that a new tax amendment might reduce the funds the city needs in the near future.
At their regular meeting on Mon. July 27, 2026, Winter Haven commissioners voted unanimously to adopt the tentative millage rate for the next fiscal year and set the date for the first public budget hearing.
The tentative millage rate remains at 6.5900 mills, the same as last year. However, because this rate is higher than the rolled‑back rate, state law requires it to be publicly noticed as a tax increase.
Next fiscal year’s proposed budget totals $371,845,623, including $177,489,939 in capital expenditures for infrastructure and major asset investments. Under the tentative millage rate, ad valorem revenues for the General Fund are projected to rise by $1,551,326, bringing the total to $32,753,796.
The city’s overall taxable property value increased 4.97 percentto $5.61 billion. Of that growth, 2.83 percent (or $164.8 million) comes from new construction, while the remaining 2.14 percentreflects increases in existing taxable value.
Of the ad valorem proceeds in the CRA, $4,382,780 and $1,676,558 will be allocated to the Downtown District and Florence Villa District, respectively—increases of $147,770 in the Downtown District and $109,041 in Florence Villa compared to last year.
The proposed budget also includes a 3 percent cost‑of‑living adjustment for city employees, setting a minimum wage of $17.30 per hour. The city plans to fund 659 full‑time budgetedpositions, including six new roles.
However, several commissioners worried that the following fiscal year’s budget might be affected if voters approve Florida Amendment 3 in November. If approved, the statewide amendment would increase the homestead exemption to $150,000 and lower the assessment growth cap on non‑homesteaded properties from 10 percent to 5 percent.
These changes apply to non‑school property taxes, a primary revenue source for cities and counties, including Polk County.State economists estimate the amendment would reduce local government revenue by roughly $12 billion annually once fully implemented, according to the Florida Policy Institute.
If approved, the amendment will affect all municipal and county budgets starting next fiscal year on Oct. 1 2027. However, Karina Hill, Director of Public Affairs and Communications, assures that the change will not affect next fiscal year’s budget.
“The City of Winter Haven has approached [next fiscal year’s] budget conservatively so as not to create any new positions, projects, or initiatives that we may not be able to fund in the following year if the Amendment passes,” she said.
Mayor Brian Yates urged caution in adopting the tentative millage rate, noting that if Amendment 3 passes, the resulting revenue loss could affect planned city projects.
“So as we continue through this budget season and beyond, I think these are the things that we need to continue to think about and consider what direction you want to go forward [because] we don’t have any crystal balls,” he said.
City Manager T. Michael Stavres praised commissioners for approaching the fiscal year with caution and strategy, especially given the risks posed by Amendment 3. He described the amendment as a “rushed approach” that could deliver far deeper revenue losses than intended, saying it could amount to “a decapitation” for governments that lack alternative funding sources.
“What’s intended to achieve some level of a haircut becomes a decapitation for many governments who don’t have the opportunities for replacement revenue,” he said.
The first public budget hearing will be held on Tues., Sept. 15, 2026, at 6 PM in the John Fuller Auditorium in City Hall at 451 Third Street N.W., Winter Haven. The meeting was rescheduled so as not to conflict with the Board of County Commissioners’tentative budget public hearing on Mon. Sept. 14, 2026.
