The Largo City Commission trimmed its property tax rate this fall, but most property owners will still send the city more money next year. Rising property values will outpace the cut.

On Sept. 15, commissioners voted 6-1 to set the rate at 5.49 mills for fiscal 2027, down from 5.52 mills this year. They approved a $325 million budget by the same margin. Commissioner Michael Smith, who wanted to hold the rate at 5.52 mills, cast the lone dissenting vote on both measures. A mill equals $1 in tax for every $1,000 of taxable property value.

The new rate still sits 1.91% above the rollback rate of 5.3872 mills, the rate that would have brought in the same property tax revenue as last year. Performance and Budget Manager Jared Campbell said the average homesteaded household will pay about $1.75 more a month, or $21.02 a year.

The votes come as Pinellas County cities prepare for Amendment 3, the property tax measure on the Nov. 3 ballot. Largo’s budget readings, usually a formality, drew debate again, as most city tax and finance discussions have for the past six months.

Questions about surpluses

Campbell told commissioners the budget projects a fund balance of 17% at the end of fiscal 2027, below the commission’s 20% goal. He also said the rate required a supermajority of at least five of the seven commissioners to pass.

During public comment, resident Dwayne Wilson, who said he has an accounting and auditing background, questioned why the city has run annual surpluses between $8 million and $28 million over the past six fiscal years. Wilson said it “befuddles me” that the city would seek a higher tax take while values climb, even with the rate held steady.

City Manager John Curp said commission policy sets a minimum fund balance of 10%, with a goal of 20%, and that the money is kept for emergencies. He said an outside firm audits the city’s finances every year. Smith added that storms are one such emergency, and said he opposed the 5.49-mill rate because he thought it should stay where it started.

Mayor Woody Brown said a fund balance can look larger than it is. He said part of the $17.9 million general fund balance is typically encumbered, carried over to pay for projects already underway, and not part of the upcoming budget. Brown said Largo’s reserves proved their worth after Hurricanes Helene and Milton in 2024, when some cities lacked the cushion and had to borrow just to clear debris. He noted that federal reimbursement through FEMA is never guaranteed and does not always cover the full cost.

A frustrated commission points elsewhere

Commissioner Curtis Holmes directed residents’ frustration at Pinellas County Property Appraiser Mike Twitty, whose office sets taxable values. Holmes said that without a larger millage cut, rising values mean a substantial tax increase, and he argued the commission is lowering the rate as far as it responsibly can. He sharply criticized Twitty’s office over the increases. State law requires appraisers to assess property at market value, and annual increases on homesteaded properties are capped at 3% or the inflation rate, whichever is lower.

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