Oakland originally estimated its taxable property value — all taxable property in the town, residential and commercial — at $1.037 billion. In a memo preceding the town’s first budget workshop for the town’s General Fund on June 23, Leon stated that property values had risen $713,670, a 12.18 percent increase and that no reserve funds were required to balance the budget. 

But Leon’s budget was based on preliminary projections from the Orange County property appraiser’s office. Oakland's taxable value actually turned out to be $1.026 billion, an $11 million difference. 

Orange County Property Appraiser Amy Mercado told VoxPopuli the discrepancy resulted from the routine property tax roll certification process.  

"The difference in values between best estimates and the preliminary tax roll was caused by exemptions that had not yet been posted at the time best estimates were issued but processed for the preliminary tax roll," she said in an email.

Commissioner Kris Keller asked if the appraisal could be challenged. Leon said that estimates could not be appealed. 

Tapping reserve funds

One unexpected outcome of the town’s reduced tax value: Oakland will save on the fire protection fees it pays to Orange County Last year, when the county upped its rates, Oakland amended its agreement to tie its fees to property value growth rather than county fire costs. The town netted about $122,000 in savings, paying $2.4 million rather than $2.6 million.

To balance the General Fund at a tentative millage rate of 6.7 mills, $300,000 will be transferred from the town’s reserves. Last year, the town pulled $500,000 from reserves to close a budget deficit. 

Oakland has about $4 million in reserves, equal to about five to six months of operating expenses. After the proposed transfer, that balance will decrease to roughly $3.77 million, enough to cover about four months of expenditures.

The first budget hearing is scheduled for Sept. 9 with a second budget hearing to adopt the budget on Sept. 22.

Amendment 3 impact

The town commission also discussed the potential impacts of Amendment 3. If approved by 60 percent of Florida voters in November, the amendment will increase the homestead exemption by $150,000 next year and $250,000 beginning in 2028, reducing the property tax revenue collected by local governments.

The town anticipates collecting $6.5 million in property tax in 2027-2028, according to its proposed budget. If Amendment 3 passes, Town Manager Elise Hui estimates the town will lose about $820,000 in homesteaded property tax in 2027-2028, resulting in a budget deficit of $369,608. It will lose an additional $827,500 in 2028, leading to a budget deficit of $711,746. 

She said the town is looking for alternative funding sources to reduce reliance on property taxes for essential services. This year’s budget includes $115,00 for studies to examine fire and stormwater fees. Hui said they are also considering rate adjustments and non-ad valorem assessments to diversify town revenues.

Still, if Amendment 3 does pass, funding for town programs, employee services and community events, even the Oakland Nature Preserve and the Healthy West Orange Arts & Heritage Center may need to be trimmed. 

The budget also includes $34 million for capital projects, like wastewater infrastructure, road improvements, updates to the Oakland Avenue Charter School and Briley Farms’ water connection. 

"If [Amendment 3] does pass, we may not be able to do any of these projects unless we secure funding through grants, or we're able to slowly allocate some money to it." Leon said.

Even so, Hui said, no community events are slated to be canceled. "Staff is actively pursuing additional sponsorship opportunities to offset event costs and preserve these community traditions," she said.