by David Jones, City of Groveland
After months of careful planning and review, the City of Groveland has adopted its FY2026-27 budget with a focus on providing property tax relief, maintaining essential services, investing in critical infrastructure and protecting the City’s long-term financial health.
The Groveland City Council adopted a staff recommended 5.5 millage rate for the upcoming fiscal year, down from the current FY2025-26 rate of 5.7 mills.
What does that mean for residents?
A millage rate is the rate used to calculate a property’s city property taxes. One mill equals $1 for every $1,000 of taxable property value.
The City’s 5.5 millage rate represents a reduction of 0.2 mills from the current rate. Although property values have increased by an average of approximately 15 percent, the lower millage rate means that the City will collect less property tax revenue than it would have collected if it had simply maintained the prior rate.
For a typical Groveland household with an assessed value of $330,860 and a taxable value of $279,449, the City’s portion of the property tax bill is expected to decrease by approximately $55.89 under the adopted rate. That savings is important, particularly as residents continue to experience increases in other household costs.
Planning for potential changes to Florida’s property tax system
The City is also preparing for the potential financial impact of Amendment 3, which voters will consider in November regarding an increase to the homestead exemption. If approved, the amendment is projected to reduce the City’s property tax revenues by approximately $3.5 million in FY2027-28 and $6.2 million in FY2028-29.
City staff are already evaluating how Groveland can continue providing high-quality services if the City’s revenues decline significantly. That means looking ahead now and not waiting until revenues are reduced to identify efficiencies, prioritize spending, and protect the services residents depend on.
Living within our means
The adopted budget reflects several fundamental financial principles:
- Maintaining at least three months of operating expenses in reserves to help the City respond to emergencies and unexpected events.
- Achieving a structurally balanced budget, ensuring recurring expenses are supported by recurring revenue and targeting a budget surplus of approximately $3 million.
- No new General Fund debt is proposed in the budget.
- Maintaining responsible debt levels, with General Fund debt obligations remaining at approximately 5 percent of recurring General Fund revenues.
- Cash-flowing smaller capital improvements when financially appropriate, allowing the City to invest in existing neighborhood parks, facilities and other community assets without unnecessarily taking on additional debt.
These are not simply accounting goals. They help the City remain prepared for hurricanes, economic downturns, unexpected expenses and future infrastructure needs without placing unnecessary pressure on taxpayers.
Continuing to invest in the services residents rely on
Fiscal responsibility does not mean stopping investment. It means making deliberate choices about where taxpayer dollars can have the greatest impact.
The FY2026-27 budget advances several projects and initiatives, including:
- Improving communication with residents through continued development of the City’s new website and upgrades to mass-notification text services.
- Strengthening public safety by preparing for the Groveland Police Department’s third Commission for Florida Law Enforcement Accreditation assessment.
- Expanding fire and emergency medical services by hiring and onboarding six additional firefighters, helping reduce unscheduled overtime while providing firefighters with greater work/life balance.
- Adding an additional paramedic unit to supplement the three paramedic-equipped fire engines currently serving the community.
- Purchasing a quick-response vehicle, providing an important emergency-response resource while potentially saving approximately $800,000-$900,000 compared with purchasing a new fire engine for the same purpose.
- Opening a new fire station on O’Brien Road to support growth in the Northern area of the City.
- Investing in existing neighborhood parks starting with Gaffney Park including a new playground, sports courts, pavilion, walking paths, and planned public access to the Palatlakaha Blueway.
- Investing millions of dollars in utility infrastructure to improve reliability, reduce outages and enhance service for residents.
- Restoring and beautifying the historic Train Depot and bricked streets while continuing significant investment in Downtown Groveland’s infrastructure as we prepare for FDOT’s State Road 50 Realignment and Coast-to-Coast Trail expansion.
Managing the cost of growth
The City also recognizes that residents are facing increases in other municipal costs, including a planned 10 percent increase in utility rates and a 5 percent increase in the fire assessment fee.
These increases are connected to the City’s need to maintain and improve infrastructure and services as Groveland continues to grow. At the same time, the City understands that every increase affects a household’s budget.
“Regardless of the outcome of November’s property tax amendment, it is the City’s most pivotal responsibility to be a trustworthy steward of public money while providing essential services,” said Groveland Mayor Keith Keogh. “This budget ensures our residents are getting the best value for their tax dollars while funding the necessary projects to keep the City moving forward.”
“Adopting a 5.5 millage rate demonstrates the commitment of the City Council and City management to improve efficiency, maintain fiscal responsibility and pay down the City’s debt.”
That is why the City is working to balance necessary infrastructure investment with debt management, operational efficiency, long-term planning and cost-conscious decision-making.
“Groveland is planning responsibly for the future while investing in the City’s current needs and ongoing maintenance,” said Interim City Manager Tim Maslow. “We recognize the impact that rising costs have on our residents, and we intend to continue pursuing frugality, efficiency and responsible financial management.”
A stronger financial foundation
The City’s financial position has strengthened significantly in recent years, allowing Groveland to take a more proactive approach to reserves, debt management, infrastructure and long-term planning.
The goal is straightforward: protect taxpayers, maintain essential services and make sure Groveland is financially prepared for the future.
“This budget is designed to be lean while also safeguarding necessary public safety expenditures and critical utility and stormwater projects,” said Chief Financial Officer Christopher Williams. “I’d like to commend City staff for their tireless efforts to bring the City to where it is today.”
For residents, responsible budgeting means more than balancing a spreadsheet. It means having firefighters and police officers available when you need them, maintaining reliable utilities, keeping parks and facilities in good condition, preparing for emergencies, maintaining roads and stormwater infrastructure, and making sure the City can continue meeting its obligations as Groveland grows.
The FY2026-27 budget is designed to do exactly that; provide property tax relief today while responsibly preparing Groveland for tomorrow.
