Pensacola Mayor Addresses Florida DOGE’s Claims on Tax Burden
Mayor D.C. Reeves of Pensacola has responded to the Florida Department of Government Efficiency (DOGE) with a letter that both acknowledges their request for information and challenges their assertion that the tax burden on city residents has increased by 70%. The mayor emphasized the city’s commitment to fiscal responsibility and transparency while addressing concerns raised by the state agency.
During an Aug. 13 press conference, Reeves highlighted the city’s strong financial track record, including its bond rating and annual audits. “We are proud of the track record that we have here in the city of Pensacola in terms of our fiscal responsibility,” he said. He also expressed openness to discussing how the city manages taxpayer dollars, stating, “I certainly look forward to having any conversation that they’d like to have about how we spend our money here at the city of Pensacola.”
Florida DOGE Demands Transparency
On Aug. 7, the Florida DOGE sent a letter to the city demanding access to city premises and 62 specific requests for information, warning that failure to comply could result in losing state funding. In response, Reeves acknowledged the request and affirmed the city’s willingness to provide full transparency. However, his letter also directly addressed the claim that property tax burdens had risen by 70% over the past six years.
The DOGE letter stated that property tax revenue had increased by $11 million, or over 70%, despite a stable millage rate. It also noted that the city’s population had remained nearly unchanged or potentially declined during the same period. This led to a nearly 50% increase in general fund expenditures.
Fiscal Responsibility and Property Taxes
Reeves countered these claims by pointing out that the city has not raised its property tax rate since 1994. In fact, the rate has decreased by 15.18% since then. “The City has not raised the millage rate since FY 1994, and today’s rate of 4.2895 mills remains well below the FY 1994 rate of 5.057 mills,” he said. He also noted that the current rate is below the statewide municipal average of 4.8286 mills as reported by the Florida Department of Revenue in 2024.
A mill is a unit used to calculate property taxes, equivalent to $1 per $1,000 of assessed property value. For example, a property valued at $200,000 would pay $857.90 in property taxes. Reeves explained that the increase in property tax revenues is due to rising property values, not an increase in the tax rate itself.
Economic Growth and Public Safety
Reeves also pointed out that the growth in property tax revenue reflects broader economic expansion and construction activity. Over the past five fiscal years, the city issued 178 Certificates of Occupancy for commercial buildings and 1,282 for residential projects. Additionally, more than 3,600 permits were issued for commercial and residential improvements, representing hundreds of millions of dollars in new investment.
However, he acknowledged that property tax revenue alone has not kept up with the growing needs of public safety budgets. This has created a $20 million gap between property tax revenue and public safety expenditures. Despite this, Pensacola was recently rated as the fourth-safest city in the nation, which Reeves attributed to the city’s investments.
He also mentioned that HB 929, a recent law aimed at improving firefighter health and safety, will require an additional $5 million per year in expenditures. While the city supports the measure, it highlights the ongoing financial challenges faced by local governments.
Financial Challenges and Budget Solutions
Reeves did not explicitly mention that the city’s general fund, even with other taxes and fees, is unable to cover the $20 million gap. Instead, the city has relied on reserves and transfers from Pensacola Energy, the city’s natural gas utility, to balance the budget. During a recent City Council budget workshop, a proposal to transfer $12.9 million in Pensacola Energy revenues was presented.
Despite these challenges, Reeves expressed confidence that the city’s approach to fiscal management is sound. “I think everybody’s allowed to have their different perspective,” he said. “And if this office’s priority perspective is solely comparing population to a non-tax increase, but a growth in property value, I can’t tell them what their favorite metric or best metric should be, but we have other ones too.”
Next Steps with Florida DOGE
Florida DOGE officials are scheduled to visit City Hall next week to review files and speak with city officials about their request. The interaction underscores the ongoing dialogue between local and state governments regarding fiscal accountability and transparency.
While the city welcomes the opportunity for discussion, it remains firm in its position that property tax increases are not the sole indicator of financial health. The situation highlights the complex relationship between local governance, state oversight, and the need for balanced budgeting.
