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Record of Proceedings

Gulfport FL City Council Workshop on Ad Valorem Tax Reform, June 18, 2026

City Council — Thursday, June 18, 2026
BodyGulfport, Florida
SessionCity Council
DateThursday, June 18, 2026
StatusFILED
Video Record
0:00 / 1:44:42

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

8:52

Eleven thirty-four.

Speaker 2

8:53

Welcome.

8:55

Welcome, and I am so glad to see a lot of faces out there that I don't know.

9:01

Um, I think tonight's presentation will be fairly brief and fairly to the point, and you'll have an opportunity to tell us what services you

Speaker 3

9:10

might like to cut.

Speaker 2

9:23

Actually, it was called Gallport Twenty Fifty.

9:26

And one person told me that he thought that we should um cut the number of ballparks that we have.

9:32

And then I had about twelve people each tell me two or three things they thought we should add.

9:36

So I think I came out about two million up instead of anything down.

9:41

So you can imagine how that happens.

9:45

So this is a little this is um going to be what we call a workshop.

9:49

And we, you know, maybe doing these, you know, eight, ten times a year.

Unassigned speaker

9:57

Um, we will have a presentation from our city uh first.

Speaker 2

10:02

Um then the council will be able to ask questions and have discussion if they'd like.

10:07

We will be taking public comment.

10:10

For those of you that routinely attend, you know, public comment is not a question and answer period, it's an opportunity for you to go on the record and say whatever you want, and then if you leave your your contact information and you have a specific question, we can get back to you without a doubt.

10:26

I'm very, very responsive on email.

10:30

Um so with that, we're gonna kick it off.

10:34

Um

Unassigned speaker

10:35

first

Speaker 2

10:35

we're gonna do roll call, and then we'll turn it over to our city manager.

10:39

Councilmember

Speaker 4

10:40

Early Council Member Donch

Speaker 2

10:42

here,

Speaker 4

10:42

Vice Mayor Shaw, present, council member Webb, present, Mayor Love

Speaker 2

10:47

here,

Speaker 4

10:47

City Manager O'Reilly, City Clerk Kerrico is present.

Speaker 2

10:51

So one last housekeeping thing.

10:53

Um, number one, if you're any chance that your telephone is on, please make sure it's off.

10:59

And the second thing is if you you miss something and you need to have a discussion with the person next to you, just take it into the hallway.

11:08

We're like a fishbowl.

11:09

I hear every single whisper up there.

11:12

I might not hear what the person next to me is saying, but I can hear everything up there, and it's distracting.

11:17

So thank you so much.

11:19

And if you will, city manager.

Speaker 5

11:21

Thank you, Mayor.

11:22

Mayor, um council and the public is very well aware of the legislative action that took place about two weeks ago in regards to expanding different versions of this, and this is why we're here tonight of what this is tax reform, save our homes, just all types of different variables that have been put out there.

11:45

Well, as the city, we have to do it from a factual standpoint.

11:49

One thing that you'll see attached to your agenda this evening is the actual joint bill that was adopted by the legislature.

11:58

That way, that's facts, and I'm they covered those points, those significant bullet points.

12:05

And I just put this in framework, I just want to make two points.

12:09

We're talking about just adulum taxes this evening.

12:14

Adulum taxes in the city of Gulfport make up approximately 32 percent of our general fund budget revenue.

12:23

It's about 6.9 million dollars of a 21.8 million dollar general fund.

Unassigned speaker

12:30

The

Speaker 5

12:30

city of Gulfport has not raised its millage rate since 2012.

12:36

We actually in 20 fiscal year 22, 23, we actually lowered it a bit.

12:42

So this has been consistent.

12:44

We've been in a range to where we are today at 4.0258 from 3.66 over 16 almost 16 years ago, and that was legislative action that was taken to lower the millage rate based on a reduction in revenue, and that was at a different property value.

13:02

Well, subsequent to that, the city lost great amount of property value and has gone through some inevitable swings.

13:10

So that those two things I think put this in context of how important this is to us as the city.

13:17

So the next item is the series of bills that this isn't just this tax bill or homestead expensive bill.

13:32

There are the legislative actions that have been taken over the last two years or so that impact us also when we put the budget together.

13:43

House bill, house resolutions, joint resolution, and we're talking about the expansion of homesteading things to that effect, which is the bill attached to you to your package, property tax reform.

13:59

House bill is the local government finance budget, transparency, and reduction requirement.

14:08

What that does is require you to go through an exercise to reduce 10% of your budget.

14:20

Yes,

Unassigned speaker

14:20

ma'am.

Speaker 1

14:21

Um that's an exercise to imagine what you would do,

Speaker 5

14:26

not actually doing it's an exercise.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability█████████████████████████████████████████████81%
Public Engagement████8%
Public Safety████7%
Procedural█1%
Budget Equity Analysis█1%
Affordable Housing█1%
Animal Welfare█1%
Summary of Proceedings

Gulfport FL City Council Workshop on Ad Valorem Tax Reform, June 18, 2026

The Gulfport City Council held a workshop on June 18, 2026, to discuss the potential impacts of House Joint Resolution 1F and other recent state legislative actions on the city's finances. City Manager Jim O'Reilly, along with council members, presented the details of the proposed constitutional amendment for the November 2026 ballot, which would significantly expand the homestead exemption, and facilitated a discussion with the public on the likely outcomes for city services.

Discussion Items

  • Legislative Context and Impact: City Manager O'Reilly outlined that ad valorem taxes constitute 32% ($6.9M) of the city's $21.8M general fund, and the millage rate has not been raised since 2012. The primary focus was House Joint Resolution 1F (dubbed "Save Our Homes" expansion), which proposes raising the non-school homestead exemption to $150k in FY27-28 and $250k in FY28-29. The city would lose an estimated $1.1M in Year 1 and $1.8M in Year 2 if the amendment is approved by 60% of voters in November 2026. The state sponsor confirmed there would be no backfill fund for lost revenue.
  • Financial Math and Shortfalls: The city already faces a structural deficit in funding public safety, collecting $6.9M in ad valorem taxes while spending $8M to $8.5M on police and fire services. The City Manager stated that if the amendment passes, 62.6% of Gulfport property owners could become entirely exempt from city property taxes. Property values in the city are flat (0.72% growth), while personnel costs are rising 3-6% annually due to inflation and collective bargaining agreements.
  • Regressive Taxation and State Mandates: Councilmember Jennifer Webb noted the state sponsor suggested raising other taxes (utility, communications, fees) to fill revenue gaps, a suggestion City Manager O'Reilly characterized as regressive, disproportionately impacting lower-income residents. Existing communication and utility taxes in Gulfport are already maximized. An "unless prohibited by general law" clause in the amendment was flagged by Councilmember Webb as shifting spending authority from the city council to the state legislature. Related state bills require a 10% budget reduction exercise and prohibit cutting law enforcement spending by more than 5%.
  • Charter and Service Implications: Mayor Love and the City Manager clarified that eliminating the city's police department would require a supermajority council vote followed by a voter referendum, as required by the city charter. Outsourcing fire services was discussed but noted as potentially detrimental to the city's ISO rating for property insurance and likely more expensive than the city's current operations.
  • Personnel and Strategic Planning: City Manager O'Reilly announced a goal to maintain the $21.8M budget baseline. In preparation for the projected shortfalls, he stated that existing vacant city staff positions will not be filled.

Public Comments & Testimony

  • April Thanos (Gulfport resident): Strongly opposed the amendment, arguing it would cripple the city's ability to fund infrastructure and basic services. She explicitly stated, "I would recommend nobody vote for this."
  • Albert Reisenberg (Ward 4): Inquired about the risk of municipal bankruptcy. Mayor Love clarified that the city has not raised enough in ad valorem taxes to fully fund public safety for many years and relies on other revenue sources.
  • Wolfgang Dininger (Gulfport resident): Expressed strong opposition, calling the bill a deliberate "power grab" by the state over local home rule.
  • Valerie Welch (E-comment): Defended the Gulfport Public Library's budget, requesting it be protected from any future service cuts.
  • Kathleen Kidwell / Robert Rubin / Kelly Rott: Raised specific concerns including city revenue math, fair market value for city leases, and requested a published FAQ on the amendment's impacts.
  • Kim Hamilton: Proposed a resident-led volunteer canvassing effort to help educate the broader community about the budget and the ballot measure.

Key Outcomes

  • No Formal Vote: As a workshop, no formal vote was taken on the budget, the ballot measure, or related strategies.
  • Next Steps: The city will proceed with its FY 26-27 budget process using the $21.8M baseline. A dedicated budget workshop is scheduled for August 6, 2026, to begin specific discussions on projected cuts and fiscal strategies.
  • Council Position: The council explicitly stated they can only educate the public on the facts of the budget. They are legally restricted from advocating for or against the ballot measure in their official capacities, though they may do so as private citizens. Residents were strongly encouraged to read the actual bill text and their individual tax bills to understand the specific impacts.

Meeting Transcript

Eleven thirty-four. Welcome. Welcome, and I am so glad to see a lot of faces out there that I don't know. Um, I think tonight's presentation will be fairly brief and fairly to the point, and you'll have an opportunity to tell us what services you might like to cut. Actually, it was called Gallport Twenty Fifty. And one person told me that he thought that we should um cut the number of ballparks that we have. And then I had about twelve people each tell me two or three things they thought we should add. So I think I came out about two million up instead of anything down. So you can imagine how that happens. So this is a little this is um going to be what we call a workshop. And we, you know, maybe doing these, you know, eight, ten times a year. Um, we will have a presentation from our city uh first. Um then the council will be able to ask questions and have discussion if they'd like. We will be taking public comment. For those of you that routinely attend, you know, public comment is not a question and answer period, it's an opportunity for you to go on the record and say whatever you want, and then if you leave your your contact information and you have a specific question, we can get back to you without a doubt. I'm very, very responsive on email. Um so with that, we're gonna kick it off. Um first we're gonna do roll call, and then we'll turn it over to our city manager. Councilmember Early Council Member Donch here, Vice Mayor Shaw, present, council member Webb, present, Mayor Love here, City Manager O'Reilly, City Clerk Kerrico is present. So one last housekeeping thing. Um, number one, if you're any chance that your telephone is on, please make sure it's off. And the second thing is if you you miss something and you need to have a discussion with the person next to you, just take it into the hallway. We're like a fishbowl. I hear every single whisper up there. I might not hear what the person next to me is saying, but I can hear everything up there, and it's distracting. So thank you so much. And if you will, city manager. Thank you, Mayor. Mayor, um council and the public is very well aware of the legislative action that took place about two weeks ago in regards to expanding different versions of this, and this is why we're here tonight of what this is tax reform, save our homes, just all types of different variables that have been put out there. Well, as the city, we have to do it from a factual standpoint. One thing that you'll see attached to your agenda this evening is the actual joint bill that was adopted by the legislature. That way, that's facts, and I'm they covered those points, those significant bullet points. And I just put this in framework, I just want to make two points. We're talking about just adulum taxes this evening. Adulum taxes in the city of Gulfport make up approximately 32 percent of our general fund budget revenue. It's about 6.9 million dollars of a 21.8 million dollar general fund. The city of Gulfport has not raised its millage rate since 2012. We actually in 20 fiscal year 22, 23, we actually lowered it a bit. So this has been consistent. We've been in a range to where we are today at 4.0258 from 3.66 over 16 almost 16 years ago, and that was legislative action that was taken to lower the millage rate based on a reduction in revenue, and that was at a different property value. Well, subsequent to that, the city lost great amount of property value and has gone through some inevitable swings.

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