A new state law, House Bill 1329, will require local governments across Florida, including DeBary, to prepare for potential future reductions in spending. This mandate comes into effect on January 1, 2027, irrespective of the outcome of a Florida constitutional amendment concerning property-tax relief slated for a November 3 vote.
The Florida Legislature passed HB 1329 earlier this year, and Governor Ron DeSantis subsequently signed it into law. The bill directs cities and counties to create scenarios for operating with less cash, requiring elected bodies to set priorities and scale back spending if drastic, unforeseen circumstances arise.
DeBary City Manager Carmen Rosamonda recently informed the DeBary City Council about the new state law. Rosamonda clarified that the law "requires us to do a 10-percent reduction exercise," emphasizing that it does not mandate an actual 10-percent cut. DeBary operates on a $23.8 million annual budget, which Rosamonda and council members describe as lean and efficient. A 10-percent reduction would amount to $2.38 million sliced from the city's spending plan.
Although HB 1329 takes effect January 1, 2027, DeBary city leaders have indicated their intent to tailor the upcoming Fiscal Year 2026-27 budget with the new law in mind. The city's fiscal year begins October 1, meaning the law's effective date is just over three months into that period.
Council Member William Sell stated that DeBary’s city budget does not have substantial excess, pointing out that special events like July Fourth festivities, fireworks, and Christmas activities account for "only 200-grand in fluff." He expressed that the city feels penalized for running a lean operation. DeBary contracts with the Volusia Sheriff’s Office for law enforcement and Orange City for fire services, maintaining its own parks and recreation and public works departments. Rosamonda suggested the council focus on non-personnel expenditures in three categories: infrastructure, equipment, and quality-of-life programs and activities, identifying certain aspects as "nonessential." Mayor Karen Chasez noted the exercise is intended to illustrate the law's potential impact.
The potential impact of Amendment 3, if approved by voters on November 3, looms larger. Mayor Chasez warned that its passage could necessitate cutting "half of the budget," calling the prospect "very, very sobering." Amendment 3's key provisions would increase the homestead exemption from the current $50,000 to $150,000 for city and county taxes, beginning January 1, 2027, and again in 2028. School taxes would apply to homes with taxable values greater than $50,000. Critics of Amendment 3 have voiced concerns that if 60 percent of voters approve it, public safety services, including law enforcement, fire and rescue, and emergency medical response, could be jeopardized.
Vice Mayor Phyllis Butlien acknowledged the importance of the backup plan requirement from HB 1329. Regarding quality-of-life expenses, Butlien suggested the DeBary Foundation could fund city Independence Day fireworks and Christmas activities. The DeBary Foundation, established last year, is a city-support organization designed to accept private donations for city enhancements, such as Alexander Island nature park improvements and art programs, holding tax-exempt status.
Another point of contention among city leaders regarding HB 1329 is a requirement for cities and counties to purchase state-approved software to assist in budget-reduction workshops. Rosamonda stated this software costs $29,000. Council Member Patricia Stevenson described this as an "unfunded mandate to buy software for the budgeting."
Mayor Chasez reiterated the concern that cities diligently managing their budgets, such as DeBary, are being unfairly impacted. DeBary holds the lowest ad valorem tax rate among Volusia County's 16 cities, with a pending tax rate of 3.65 mills for the 2026-27 fiscal year. This rate, 3.6 percent above the rollback rate of 3.5231 mills, is projected to generate $12.3 million in revenue, contributing to a new budget totaling $55.6 million. Chasez concluded by highlighting the inherent risks local governments must manage, from flooding to employee injuries, calling the overall situation a "very sobering thing."