City Commission Special Meeting on FY 2027 Contingency Plan - September 17, 2026\n\nThis special meeting was convened to discuss the City of Dunedin's FY 2027 contingency plan, a proactive step to prepare for potential revenue losses if Amendment 3 (property tax reform) passes in November 2026. The plan proposes approximately $3 million in cuts for the first nine months of FY 2027, with an anticipated $7.6 million annual shortfall by FY 2029. City staff presented detailed department-by-department reductions, and the commission heard public testimony and deliberated on the plan's implications. No final decisions were made; the commission agreed to reconvene in early October for further discussion and direction.\n\n### Public Comments & Testimony\n- Kathy Harvey (Chair, Board of Finance): Presented the board's recommendations, including: oppose eliminating the grant specialist position (which generated $8 million in grants), support closing the aging pool until a new aquatic complex is built, review the fleet program in light of staff reductions, evaluate moving senior programming from the Hale Center, and consider raising millage rates or increasing fees.\n- Mark Allison (County Athletic Director for Dunedin High School): Expressed concern about closing the pool, as it is used by the high school swim team and finding alternative pools would be very difficult. Offered to participate in future discussions.\n- Chris Settle (Administrator, Dunedin High School): Highlighted the pool's importance for 20-25 student athletes on the swim and dive team, some of whom compete at state level. Offered partnership opportunities with the city.\n- Linda Corless (Resident, 239 Park Circle South): A regular swimmer who urged the commission to consider the five-year gap without a pool and suggested negotiating a special deal with the Long Center for Dunedin residents if the pool closes.\n- Karen Gallagher (Resident, 1701 Pinehurst Road): Emphasized that the pool, library, parks, and recreation programs are central to the community's appeal and attract residents and tourists. Stressed that cutting these services would harm youth and community health.\n\n### Discussion Items\n- City Manager's Opening Remarks: Jennifer Bramley introduced the contingency plan as a surgical, department-led effort to cut $3 million from the FY 2027 general fund budget effective January 1, 2027, if Amendment 3 passes. She noted that even if the amendment fails, portions of the plan will be implemented via attrition.\n- Property Tax Reform Overview (Les Tyler, Finance): Detailed how Amendment 3 would increase homestead exemptions to $150,000 in FY 2028 (causing a $4 million loss) and to $250,000 in FY 2029 (causing a $6.1 million loss), plus county roll-down impacts, totaling $4.8 million in FY 2028 and $7.6 million in FY 2029.\n- Contingency Plan Details (Department by Department):\n - City Attorney: $25,000 reduction in legal services (historically under budget).\n - City Commission: $29,500 reduction including relocation of holiday banquet, elimination of strategic plan consultant, and 50% reduction in aid organization grants ($104,250).\n - City Manager: Elimination of vacant grant specialist position ($22,600), reduction in public art master plan ($38,000), and reduction in sustainability rebate program ($20,000).\n - Communications: $47,600 reduction including PEG channel ($18,600), closed captioning replaced with free YouTube, and reduced marketing for Visit Dunedin.\n - Community Development: $49,600 in personnel reallocation and $52,000 in operating cuts including transportation studies, abatement activities, historic plaques, and elimination of the solar rebate program ($50,000).\n - Economic Development: $39,000 in personnel reallocation (no service impact).\n - Finance: Elimination of vacant buyer position ($82,570), potentially slowing procurement.\n - Fire Rescue: $50,200 revenue reduction from county contribution; $147,000 personnel savings (eliminating overtime by reducing minimum staffing from 15 to 12 per shift, effective after SAFER grant expires in March 2028); $196,000 operating cuts (maintenance, supplies, training); $76,000 capital cuts. Chief Michael Handoga warned of doubled response times due to likely downgrade of Engine 60 to BLS and potential loss of ISO Class 2 rating.\n - Human Resources: $35,000 operating cuts reducing employee engagement activities and training.\n - IT Services: $112,000 savings via reduced licenses, cloud storage, antivirus replacement, and equipment efficiencies.\n - Library: Revenue increase $9,000 from passport services; labor savings $174,000 (elimination of two positions, closure on Saturdays). Director Phyllis Gorchi noted Saturdays are the lowest traffic day.\n - Facilities: Elimination of two vacant positions ($131,000) and $177,000 operating cuts (janitorial reduction to three days/week in non-public areas).\n - Streets: Elimination of two FTEs and transfer of one FTE to stormwater; $72,000 operating cuts (signs, mowing, electricity).\n - Parks & Recreation: Two scenarios presented (total savings ~$1.33 million each):\n - Scenario 1: Pool remains open, requiring $300,000 in repairs for 2027; reduces 4.0 FTEs; maintains music program and other amenities.\n - Scenario 2: Pool closes until new aquatic complex (estimated completion 2031); reduces 11.36 FTEs; adds back some cuts to community center events, MLK field trips, health center maintenance, and parks maintenance. Both scenarios include elimination of city-run special events (holiday parade, Old Fashioned Christmas, July 4th) and increased user fees.\n- Full Impact of Amendment 3 (FY 2029): Additional $4.6 million in cuts required, likely 44 positions eliminated, including four sheriff's deputies, halving traffic enforcement, and reducing crossing guards. Fire and law enforcement costs ($21.2 million) already exceed property tax revenue ($18.7 million). Future considerations include fire assessment, removing paid parental leave, staff furloughs, and possibly consolidating fire engine 60 and truck 62.\n- Commissioner Deliberation:\n - Commissioner Dugard expressed frustration, calling the exercise rearranging deck chairs on the Titanic, noting lost multipliers like grant writing.\n - Commissioner Gow conflicted on pool closure, thanked staff, and urged inclusive surveys.\n - Vice Mayor warned of unintended consequences and supported monitoring impacts via strategic dashboard. Favored not closing the pool permanently.\n - Commissioner Samberg emphasized voter education and noted that many residents already face high costs; he acknowledged the necessity of cuts.\n - Mayor noted the exercise revealed efficiencies that should be implemented regardless. She stressed the need for community involvement in reimagining city services if Amendment 3 passes, with priority on public safety.\n\n### Key Outcomes\n- The commission did not vote on any cuts. Staff will provide follow-up information for a second workshop.\n- Decision: A special meeting will be scheduled for the second week of October 2026 (likely October 8 or 9) to give consensus direction on the contingency plan, ahead of the November 3 election.\n- Staff Action Items: \n 1. Separate out efficiencies (items that reduce costs without service cuts) from the contingency plan.\n 2. Provide data on grant match requirements, total department budgets, historic plaque costs, and cost savings from solar conversion.\n 3. Include Dunedin High School representatives in future pool discussions.\n 4. Provide details on the process for selling surplus city property.\n- Ongoing Monitoring: The contingency plan, if implemented, will be monitored monthly by staff to ensure assumptions hold.\n- Revenue Recovery: The city is exploring a fire assessment (consultant contract on that evening's agenda), increasing millage rates in future years, and raising user fees for parks and recreation.\n\n---\nThis summary reflects discussion from the September 17, 2026 special meeting. All decisions are pending until the follow-up workshop.