Clearwater residents gathered for a budget workshop Saturday to learn how a proposed statewide constitutional amendment could affect city services and funding if voters approve it in November.

Amendment 3 would increase homestead exemptions for homeowners, effectively phasing out property taxes over the next several years for qualifying properties. To qualify, a property must be the owner’s primary residence in Florida.

City Manager Jennifer Poirrier told residents Clearwater could lose millions of dollars from its general fund if the amendment passes.

“Our revenues could be impacted at a reduction of approximately $12 million in year one and an additional $8 million in year two to the general fund,” Poirrier said.

The $12 million reduction would represent about 10% of Clearwater’s general fund, according to the city. Poirrier said officials would need to review where cuts could be made if the measure is approved.

The city is scheduled to hold a special budget work session Aug. 11, when officials will present options to the City Council for the 2027 budget.

“We are taking the information that is gathered here today from the community to determine how we would implement a plan should the referendum pass with those reduced revenues,” Poirrier said.

Resident Patrick Raftery said the workshop gave him a chance to speak directly with city leaders about the amendment’s possible effects.

“I think the impact on the city’s revenue will be significant,” Raftery said. “We need to understand that that will affect services being provided to us and initiatives being funded by the city.”

Raftery said he understands why homeowners may want to see their property taxes reduced, but said residents should also weigh the potential effects on city services.

“We all might be focused on the reduction of our property taxes, which we would like, but there are consequences of that,” Raftery said. “We need to be careful that those things do not impact our city adversely, and therefore ourselves.”

Raftery added that if the amendment passes, city leaders will face difficult decisions about where to make cuts.

“Ten percent is going to have to come from somewhere,” Raftery said. “And unfortunately, the council, city manager, and staff are going to have to set the priorities for where that 10% reduction comes from.”

Poirrier said the city of Clearwater does not have an official position on Amendment 3 and is not permitted to take one. She said the city’s role is limited to providing information about how the amendment could affect Clearwater.

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