Windermere 'will be OK' amid potential property tax reform

“I can tell you with confidence: We will be OK.”

Windermere Town Manager Robert Smith assured Windermere Town Council members during a budget meeting Tuesday, July 28, that even if the property tax reform passes in November, the town will be OK financially — with cuts and budget tightening. 

Windermere Town Council unanimously approved maintaining the town’s millage rate of 3.7425, the same millage rate the town has had since 2018 when it was increased to generate revenue to invest in infrastructure. 

Smith said the town’s estimated taxable value for this year is $1,296,514,401, an increase of more than $33 million. 

About 41%, or 900, of the town’s homes fall under the homestead exemption in the property tax reform. If the reform passes, the town will take a hit of about $350,000 in the first year of the reform followed by more than $650,000 in the second year. 

Smith said a potential increase in property appraiser estimates could bridge the gap, but he wouldn’t be able to make that determination until he receives the estimates each year. 

“If it passes, we will be OK,” Smith said. “We’re going to have to button it up a little bit, but if the property appraisals still go up, it’ll take us probably about three or four years to get us back to where we’re at right now. … The good thing is that we’re small. We don’t have these huge budgets. We don’t have these huge departments.”

The Ocoee Fire Department provides fire services for the town of Windermere. The fire service agreement for the town is going up to $1.1 million from $875,000 last year. Smith said the fire assessment will generate about $1.5 million, offsetting the cost. 

Projects that will be completed in Fiscal Year 2026-2027, which runs from Oct. 1, 2026, through Sept. 30, 2027, include the Ward Trail Phase 1 with pedestrian bridge; West Second Avenue potable water, road and stormwater improvements; Bessie basin stormwater improvements; Butler basin stormwater improvements; and Windermere Road and Main Street intersection improvements. 

The town already has allocated money toward engineering, design and architecture, but the project can be paused until the cash flow is good enough to start construction, Smith said. 

Smith provided council with recommendations on events and infrastructure projects that could be cut or deferred to prepare for the impacts of the property tax reform. 

“Quality of life is one thing, the level of service is another,” Smith said. “Quality of life would be having those community events, having lights, Halloween stuff, nice banners. The levels of service would be making sure our roads are in proper condition, making sure the stormwater is working, making sure the police are out protecting everybody. So that’s what we’re trying to focus on right now.”

The town-sponsored events being proposed for elimination or suspension include Food Truck Nights and Light Up Windermere. 

The Easter Egg Hunt Extravaganza will continue, but the Windermere Police Department Foundation will fund and organize the event. 

“It’s those (events) that taxpayers look at and say, ‘Is this necessary? Is this needed? Was it just something we want?’” Smith said. “That can be a discussion council can have with me to say, ‘OK, listen, it’s important. We just need to scale it down.’”

Smith said the town also is looking to potentially defer capital improvement and infrastructure projects until after Tuesday, Nov. 3, and the property values for 2027 and 2028.

One of the projects is the town’s Potable Water Central Phase project, of which there still is about $800,000 of a $3.081 million from the state available. A majority was spent on design for not only West Second Avenue but also ancillary roadways. Smith recommended the town return the $800,000 to the state because the reimbursement rate from the state is eight to 12 months. The town still is waiting to receive at least $5.8 million from the state in reimbursements from appropriations. 

“Just because you have something doesn’t mean you have to spend it; you can give it back,” he said. “If I were to spend that money, we’d be digging that hole even deeper, so just because we have it doesn’t mean we need to spend it. It hurts me to say that as much as we fought for that, but we’re not in a position to spend that money every single time.”

Staff also recommended cutting the North Phase water design at $618,318.96, South Phase water design at $666,500, Parks and Recreation’s Capital Improvement Program at $25,000, and $10,000 in street and road repairs. Another recommendation was cutting the Arbor Day trees the town gives away, but Smith said Duke Energy provides the trees. 

Other cuts include reducing the budget for sidewalk repair and construction to $20,000 from $100,000 as well as town decorations to $15,000 from $35,000 and signage to $5,000 from $44,000.  Town staff also will be deferring equipment and technology replacements for Information Technology that will result in a reduction of $50,000.

Smith said any cuts made can be added back into the budget depending on cash flow.

Windermere Town Council unanimously approved consenting to a balanced proposed budget of $12,464,394.17 as well as setting the tentative budget hearing for Thursday, Sept. 3, and the final budget hearing for Wednesday, Sept. 16. 

Council also unanimously approved the solid waste assessment at $518,920.18, stormwater fund assessment roll at $376,525.18, fire assessment at $1,157,624.45 and the Willows Street light assessment at $17,861.76.