- Indian River County Administrator John Titkanich has proposed a $614.8 million budget for the upcoming fiscal year, nearly $97 million less than the current budget.
- The cuts come in anticipation of major property tax revenue losses if Florida Constitutional Amendment 3 passes in November.
- Public budget hearings are scheduled for September 9 and September 16 in Indian River County.
The Indian River Board of County Commissioners is bracing for a potential financial shift. County Administrator John Titkanich has released a proposed budget of $614,789,330 for the coming fiscal year, slashing nearly $97 million from an earlier estimate to prepare for possible revenue losses tied to a November ballot measure.
Amendment 3 Drives Spending Cuts in Indian River County
Florida Constitutional Amendment 3 is at the center of the county’s budget planning. The measure would raise homestead exemptions on non-school property taxes from $50,000 to $150,000 in 2027 and $250,000 in 2028. It would also cut the annual cap on property assessment increases for non-homestead properties from 10 percent to 5 percent. At least 60 percent of voters must approve the amendment for it to take effect.
If voters say yes, Indian River County could lose roughly $22 million in property tax revenue in fiscal year 2027-2028. That loss would grow to approximately $41 million the following year, according to Titkanich.
“Make no mistake, this is a tax shift,” Titkanich said. “This will shift the tax burden from homestead property owners to non-homesteaded property owners and the owners of nonresidential properties.”
He added that landlords would likely increase rental costs because vacation homes and rental properties are not eligible for the expanded exemptions.
The proposed budget is still in flux. The original budget adopted last October was $598,860,844. That figure had climbed above $711 million by the end of March, largely due to higher costs for road construction and maintenance, inflation in materials and fuel, and a new $3 million annual expense for inmate medical care. That cost came from a legal settlement with the Indian River County Sheriff’s Office.
Possible Service Reductions and New Revenue Options Near Vero Beach
County officials have not finalized what services may be reduced if Amendment 3 passes. Titkanich said the county could lose up to 85 employees and may consolidate some emergency services stations. A Tax Reform Advisory Committee is being formed to study what changes might be needed.
One option to offset lost revenue is a stormwater utility fee. The county drafted a Stormwater Management Plan last year that recommended such a fee. The Vero Beach area is no stranger to these types of assessments. The City of Vero Beach established stormwater utility assessments and fees in 2021.
“Managing stormwater, ensuring flood control and protecting the lagoon score high on our residents’ list of priorities,” Titkanich said. “So yes, we will evaluate what a stormwater fee would look like for the county.”
Property taxes are the primary source of revenue for the county’s general fund. Sixty percent of that fund covers costs for constitutional offices, including the Indian River County Sheriff’s Office, the Clerk of the Court and Comptroller’s Office, the Property Appraiser’s Office, the Tax Collector’s Office and the Office of the Supervisor of Elections. About 21 percent pays for county operations.
The county’s property tax rate has remained unchanged for six years and is among the lowest of any county in Florida, according to Titkanich.
What Comes Next for the Indian River County Budget
Public budget hearings will be held on September 9 and September 16 at 5 p.m. at Indian River County Commission Chambers. Residents can review the proposed budget on the county’s official website. County Budget Director Kristin Daniels is working alongside Titkanich to finalize the numbers before adoption.
“We will have to look at everything, with input from county commissioners and the public,” Titkanich said. “It’s too early to ascertain exactly what types and levels of services would exist after a yes vote on Amendment 3.”
