FORT LAUDERDALES, Fla. — Boca Raton could lose nearly $25 million in tax revenue over the next couple years if property taxes are cut, said city officials, leaving city officials with difficult budgeting decisions.

On June 2, the state Legislature backed the “Save Our Homes from Excessive Property Taxes” plan, which would increase the state’s homestead exemption to $150,000 in 2027 and $205,000 in 2028. At least 60% of voters need to approve the proposal in November for it to pass.

Local leaders say small municipalities without diverse tax bases are the most vulnerable, but even larger, more established cities such as affluent Boca Raton are threatened, especially when it comes to services.

According to the Boca Raton Chief Financial Officer Jim Zervis, the city will lose about $8 million in 2027 and about $16.7 million in 2028.

Less than 22% of residents’ total tax bill actually goes to the city, Zervis said during a meeting on Tuesday. But the city uses this funding to provide all the local services, he said.

“When you talk about police, fire, (emergency medical services), parks and recreation, all of the things, beautification, all of the services that we enjoy here within our community, really the local services outside of schools, it really does come from less than a quarter of your overall tax bill,” Zervis said.

Zervis also detailed exactly how much each department could lose in 2028, which included nearly $10.3 million from the police and fire rescue services.

If property tax cuts are approved, Zervis said the city’s entire tax base will reduce by 11%, which means the burden to fund costs may fall to non-homesteaded properties. This includes commercial, industrial and rental property.

Before Tuesday’s meeting, Deputy Mayor Michelle Grau said the property tax cuts could exacerbate the city’s already-high cost of living.

“We’re already facing an affordability crisis, so I just feel like renters, they’re never going to have the American dream of owning a house,” Grau said.

Ultimately, if the plan is approved in November, “somebody’s going to have to suffer,” she said.

Zervis said he believes the proposal is “very likely to be approved.”

“People like tax cuts, tax reductions,” he said. “Assuming that happens, we’ll definitely need policy direction on how we bring these different ideas together to deal with the lost revenue.”

In his presentation, Zervis said “priority-based budgeting will be needed” to determine which services are deemed a priority and what level of service will be acceptable to fit within a reduced budget. This evaluation could include looking at:

— Public safety response times and staffing levels

— Parks, public landscaping and street maintenance

— Streets and infrastructure

— Homelessness efforts

— Local nonprofits and affordable housing

— Recreational programming

Zervis also presented other ideas the council could consider implementing if property taxes are cut. These included increasing the millage rate, increasing city fees for services such as parks, the library and parking, and monetizing the city’s assets through naming rights, billboards or advertising.

Council members did not make any decisions during Tuesday’s meeting, but some expressed their frustration at the state’s plan.

“Here we go again where the governor and the Florida Legislature had an opportunity to focus on property insurance reform and they failed the public and they went again to further erode local government,” Council member Yvette Drucker said.

Drucker then pointed out how if services such as fire rescue are reduced, people’s lives could be impacted.

“We have an incredible call time and response time in the city of Boca Raton. One minute can save a live. So if we reduce some of our fire services, you could make a 911 call and the response time by one minute, you could have someone that survived or someone that died,” she said.

“And I know it sounds very drastic, but that’s what happens when you cut services to essential everyday functions.”

The city will conduct a budget workshop on June 18 where council members and residents can weigh in on the projected fiscal year 2026-2027 budget.

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