A point stressed by opponents of the property tax amendment which was approved by Florida voters on January 29 is that the implementing of the amendment would result in loss of revenue to the various city governments. Under the amendment Florida residents will retain property tax benefits when they purchase a new home and receive increase in homestead exemptions which should reduce annual property tax on an average $240 annually.

A recent report in the Miami Herald indicates that some cities are preparing for the negative reaction on their budgets.

Aventura is preparing for a million dollar fall in its revenue, to be met by eliminating special events held in the city and travel for city employees. In Davie, some 20 positions in the city administration were frozen including positions in that city’s police department. However, the city has been able to alleviate any pressure on the police department by arranging longer shifts of 12 hours.

In Homestead, Miami-Dade County, the vote on January 29 could result in a loss of $1 million in revenue. This is in addition to revenue of $3.5 million that was lost to state-mandated cuts last year, which forced that city to eliminate 21 positions.

The situation in the relatively new city of Miami Gardens is somewhat more positive, as being a city less than five years old, its residents were exempt from last year’s property tax cuts, which could have resulted in $10 million of potential lost revenue. However, the city now stands to lose $2.5 million as a result of the approved amendment. This loss, according to the Herald report should be adequately cushioned by a tax increase that the city implemented last year to finance its new police force. The city plans to hire approximately 40 additional police officers over the next year.