Sumter County officials bracing for huge potential losses of revenue

With three tax-related proposals on the November general election ballot, Sumter County is hedging its bets in the preparation of next year’s budget.

County Administrator Bradley Arnold submitted two budgets to commissioners. One assumes that a property tax referendum will not pass and that continuation of two gas taxes will be approved  The alternative budget assumes that the property tax referendum succeeds and the gas taxes fail.

If the property tax referendum is approved by 60 percent of the voters, Sumter County would lose an estimated $16 million in tax revenue next year and $45 million the following year 

Commissioners will meet in a workshop Tuesday to begin their budget review. The budget will be adopted in late September after two public hearings. The 2026-27 fiscal year begins Oct. 1.

The county’s robust growth continues with the addition of 4,181 single-family homes last year, as well as commercial and industrial development. The Villages of Southern Oaks and apartment construction in Wildwood have boosted the population to 155,000.

In both proposed budgets, the current tax rate of $4.89 per $1,000 assessed valuation would be retained. That represents a tax increase since it is above the rolled back rate of $4.73, which is the amount needed to collect the same revenue as this year except new construction.

The county expects to collect $123.9 million in property taxes next year 

Proposed expenditures of $345.4 million in both budgets would be a 4.6 percent decrease due to completion of capital projects and an $11.8-miillion decrease in the general fund, due to the use of cash to retire debt this year.

The alternative budget would eliminate county functions that are not mandated by the state.

They include the citizen information center, the county agent, the public information office, veterans’ services, ATM rentals, jury-baliff supplies, You Thrive Florida, park maintenance, solid waste amnesty days, school resource officers and cash reserves 

If the gas taxes are voted down, the county would lost $2.2 million for road maintenance.

The property tax referendum calls for increasing the 2027 homestead exemption to $150,000 and to $259,000 the following year. Law enforcement, fire and school taxes would not be affected.