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July 31, 2026 · Ormond Beach Observer

Facing property tax uncertainty, Ormond Beach eyes budget cuts instead of a tax hike

By Rich Carroll

Ormond Beach Buzz graphic for the 2026-27 city budget story, in navy and brand orange.
Graphic by Ormond Beach Buzz

City commissioners plan to hold the property tax rate flat for 2026-27 while trimming discretionary spending, bracing for a November constitutional amendment that could sharply reduce future property tax revenue.

  • The short version
  • Proposed $152 million budget keeps the operating millage at 4.3202 mills, with General Fund reserves at 15.6%.
  • A November amendment expanding homestead exemptions could cost the city nearly $5 million in 2027-28 and $3.2 million the year after.
  • Deputy Mayor Lori Tolland floated delaying capital projects; Commissioner Kristin Deaton proposed about $1 million in one-time cuts.
  • Public budget hearings are set for Sept. 9 and Sept. 23, when the final millage and budget are adopted.

Ormond Beach commissioners are preparing to hold the city's property tax rate flat for the 2026-27 fiscal year, choosing to trim discretionary spending rather than ask residents for more, according to reporting by Rich Carroll for the Ormond Beach Observer.

The proposed $152 million budget keeps the operating millage at 4.3202 mills and holds General Fund reserves at 15.6%, above the city's policy floor.

Why commissioners are bracing for less revenue

A constitutional amendment on the November ballot would expand homestead exemptions statewide. If it passes, city staff estimate Ormond Beach could lose nearly $5 million in property tax revenue in 2027-28 and about $3.2 million the following year.

That prospect has shaped the current budget conversation: rather than build in spending the city may not be able to sustain, commissioners have discussed slowing down commitments now.

What commissioners proposed

Deputy Mayor Lori Tolland floated delaying some capital projects to preserve flexibility, while Commissioner Kristin Deaton proposed roughly $1 million in one-time cuts to discretionary line items.

Public budget hearings are scheduled for Sept. 9 and Sept. 23, when the commission adopts the final millage rate and budget. Both meetings are open to residents.

Credit where it's due

This summary is based on original reporting by Rich Carroll for the Ormond Beach Observer. Please read and support their work.

Read the original at Ormond Beach Observer

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