How Lake Worth Beach could be impacted if voters raise the homestead exemption in November

‘It’s going to affect everything,’ a city commissioner says about millions in projected revenue losses that could lead to cuts in public services and programs

IF VOTERS RAISE Florida’s homestead exemption in November, Lake Worth Beach homeowners can expect deep cuts not just to their tax bills but to the public services and programs they receive from the city.

The “Save Our Homes from Excessive Property Taxes” constitutional amendment requires approval by 60% of statewide voters.

Here’s how Lake Worth Beach will be impacted if it passes, according to an analysis by Palm Beach County Property Appraiser Dorothy Jacks using 2025 property values:

• Lake Worth Beach has 5,673 homesteaded properties representing nearly 44 percent of the city’s 13,067 parcels.

• If the $50,000 homestead exemption is raised to $150,000, the city would lose about about $3.5 million in property tax revenue in 2027.

• If the homestead exemption is raised to $250,000, the city would lose about $4.75 million in revenue in 2028.

• Applied to the current city budget, that’s a loss of about 18 percent and 25 percent, respectively, in the $19.3 million in property tax revenue that makes up nearly 36% of the $53.6 million general fund.

That lost revenue could force Lake Worth Beach officials to make tough decisions about cuts their constituents may not like.

“It could affect all of the Leisure Service activities,’’ said Vice Mayor Mimi May, referring to the department responsible for the city’s parks, golf course and casino complex and popular events like the Street Painting Festival, Fourth of July fireworks, beach bonfires and the December holiday parade.

“It could decrease the level of service if we have to make any personnel cuts. That is our last resort, though,’’ May said.

The challenge comes as Lake Worth Beach property values have reached a milestone — $4.005 billion, an 8.7% increase, according to preliminary 2026 estimates released by Jacks’ office last week.

The November ballot question will likely influence city commissioners when they work on next year’s budget. Their first budget workshop is 9:30 a.m. June 11 at CIty Hall.

“The city has been actively evaluating the potential fiscal impacts of proposed property tax reforms since the legislation began gaining momentum several months ago,’’ the city said in a statement June 4.

“Following the recent approval to place the measure before voters, city staff will continue refining budget options, reviewing operational efficiencies and assessing long-term financial strategies to prepare for potential revenue impacts,’’ the statement continued.

“The city’s priority remains maintaining essential public services while ensuring fiscal responsibility and long-term financial stability for residents and businesses.’’

The property tax reform ballot question will be a main topic at a town hall meeting at the Casino Complex on July 25. Commissioner Anthony Segrich, who’s hosting the town hall, said he hopes residents will offer suggestions on what to cut.

“It’s going to affect everything,’’ he said. “And it’s not just our city, it’s all cities. We are actually pretty middle of the road in terms of impact. Many rural cities are going to get crushed.’’

Palm Beach County municipalities with higher tax bases, such as West Palm Beach, Palm Beach Gardens and Boca Raton, might be able to absorb the impacts better than small towns like South Bay, Lake Clarke Shores and Lantana.

“The thing that is probably the most disturbing to me about this concept is that the government that people like the most is their local government,” Jacks said Tuesday at a County Commission meeting.

“They like the parks. They like the library. They like the Christmas parade. They like the summer barbecue. They like the programs for their kids,” she said. “All of that is very local, and it’s a shame that that government is the government that is being targeted. We as citizens have to think about that.’’

Meanwhile, Gov Ron DeSantis has launched a website that allows homeowners to calculate potential tax savings if voters approve the plan.

It might be hard for voters to cast ballots against an initiative that would shave thousands of dollars from their tax bills. But they should carefully study the broader ramifications of a yes vote before they go to the polls, County Commissioner Maria Marino said.

“It’s just going to be the folks that are homesteaded who think that this is such a great deal,’’ she said, adding that they may “not realize that if you want to go to the beach, go ahead, but there won’t be any lifeguards there to guard you. Or if you want to go to a park, go ahead, but there’s not going to be any maintenance on that park.’’

Marino, a Republican, said: “If you are out there listening about why this is not a good idea…please understand that the impact of this means that services to you at home will decrease if we get rid of property taxes.’’

Lake Worth Beach Mayor Betty Resch did not return a message seeking comment.

Here is a Palm Beach County Property Appraiser estimate of how the proposed ballot amendment would affect local governments: