Eight different proposals could appear on your 2026 ballot. If approved by voters, they could take effect as early as 2027. Below is a breakdown of each proposal in plain language.

Additional Considerations

• Cumulative Effects: If multiple pass (e.g., HJR 201 + 205), losses could exceed $6 million annually, forcing reliance on reserves ( about $0.1 million in General Fund) or other sources like sales taxes ($1.6 million) or charges for services ($1.9 million).
• Mitigation: Tequesta could offset via sales taxes (as mentioned in prior sessions) or budget reallocations, but prohibitions on cutting law enforcement ( about 52% of General Fund spending) limit flexibility.
• Data Sources and Uncertainties: Estimates use FY 2025-2026 budget figures, local homestead data (60% of residents/homes), and demographics (population  about 6,100;  about 2,800 households; 60% homestead rate). Tequesta-specific parcel data (~2,800-3,000 estimated properties) lacks precise homestead breakdowns, so actual losses could vary ±10-15%. Taxable values grew 8.42% in 2025, potentially cushioning short-term impacts.
• Broader Context: These changes aim for voter choice but could strain small municipalities like Tequesta (budget ~$50 million total, including capital/enterprise funds). No implementing laws yet, so final effects depend on post-2026 legislation.

If one or more proposals pass, the Village would have limited options:

Option 1: Find New Revenue Sources

• Increase fees for services (like permits, recreation programs)
• Seek more state or federal funding
• Explore sales taxes or other alternatives

Option 2: Cut Services

• Reduce or eliminate programs in parks and recreation
• Delay road and infrastructure maintenance
• Reduce administrative services
• Note: Law enforcement and fire service funding cannot be cut under these proposals

Option 3: Shift Tax Burden

• Non-homesteaded properties (rentals, businesses, second homes) would bear a larger share of the tax burden
• Could require increasing tax rates on non-exempt properties

Possible revenue sources to offset losses:

• Increased Service Fees - The Village could raise fees for building permits, recreation programs, facility rentals, and other services. However, our current service fees only generate $1.9 million annually - not nearly enough to offset multi-million dollar losses.
• Budget Reallocations - With law enforcement consuming about 52% of the General Fund, the Village has limited flexibility to shift funds between departments. Any significant cuts would need to come from parks and recreation, road maintenance, or administrative services.

The Reality:

Tequesta has only about 18% million of General Fund expenditures in General Fund reserves, so we cannot rely on savings to cover multi-million dollar losses. Some combination of all three options and multiple revenue sources would likely be necessary.

Current Financial Picture:

• Tequesta's total taxable value: $2.22 billion
• The Village did not increase tax rates in 2025 despite rising costs
• Property values grew 8.42% in 2025, which helped maintain services without a rate increase

Timeline:

• November 2026: Voters decide on these proposals
• 2027: If approved, changes could take effect
• Post-2026 Legislative Session: Details and implementation rules would be finalized

Data Notes:These estimates are based on our current budget and the best available data about Tequesta's homestead rate (approximately 60% of homes). Actual impacts could vary by 10-15% depending on final legislative language and how property values change.

Important Considerations

This represents the cumulative CPI increase over the 4-year period from December 2020 to December 2024. For a full 5-year span (to December 2025), the value would be slightly higher based on trends (e.g., ~2.6% year-over-year as of August 2025), but exact data is pending.

Year-Over-Year Increases (for Context)

Where these numbers come from:

These estimates are based on the Village's FY 2025-2026 budget and the best data available about our community:

• Population: Approximately 6,100 residents
• Households: Approximately 2,800
• Homestead rate: About 60% of homes have homestead exemptions
• Total properties: Approximately 2,800-3,000 parcels
• Senior population: About 32% of residents are over 65 (compared to 21% statewide)

Why estimates may vary:

Because we don't have precise breakdowns for every property in Tequesta, these estimates could be off by about 10-15%. The actual financial impact will depend on:

• How the Legislature writes the implementing laws after 2026
• Which specific properties qualify for each exemption
• How property values change in future years

A note on recent growth:

In 2025, Tequesta's property values grew by 8.42% without any tax rate increase. This growth has helped the Village maintain services without raising rates. However, if these proposals pass and limit future growth (like HJR 213), this natural cushion would disappear just as revenues are being cut.

Why this matters for Tequesta:

These proposals aim to give voters more control over property taxes and provide relief to homeowners. However, they could create unique challenges for small municipalities like Tequesta.

Our total annual budget of about $50 million includes:

• General Fund operations (police, parks, administration): $20.5 million
• Capital projects (roads, facilities, infrastructure improvements)
• Enterprise funds (water, sewer, stormwater utilities)

Unlike larger cities with diverse revenue sources, small communities like Tequesta rely heavily on property taxes to fund essential services. A $6 million loss would represent nearly one-third of our General Fund—the equivalent of eliminating all Village services except law enforcement.

What we don't know yet:

Until the Legislature passes the implementing laws after the 2026 session, many details remain unclear:

• Exact eligibility requirements for each exemption
• How multiple proposals would interact if more than one passes
• Potential state funding to help municipalities offset losses
• Transition periods or phase-in schedules

We will continue to monitor the legislative process and update residents as more information becomes available.