Oviedo could end holiday events, cut services if Amendment 3 passes

Voters will have a decision at the ballot box in November that could potentially alter how the city of Oviedo functions.

Amendment 3, also known as “Increased Homestead Exemption; Lower Cap on Increases in Non-Homestead Property Assessments” following a court order that said the previous wording was biased, would both increase the homesteaded property tax exemption for certain homeowners while also restricting how cities and counties can use that revenue. This is expected to lead to cuts in services for city and county governments statewide if it passes. 

The state’s homestead tax exemption would increase from its current amount of just more than $50,000 — $25,000 of which is exempt from all property taxes, and $25,000 exempt from non-school taxes only — to $150,000 in 2027 and $250,000 in 2028. Starting in 2029, further increases would be tied to the rate of inflation. 

The amendment would also give the legislature the authority to create a schedule for property tax elimination for homesteaded properties in the future. If the amendment passes in November, it will take effect Jan. 1, 2027. Passage requires at least 60% approval by voters.

About 50% of Oviedo’s $4.8 billion in estimated 2026 taxable value is attributable to homesteaded properties, according to the Seminole County Property Appraiser’s office. Nearly $14 million of Oviedo’s $27 million in 2026 ad valorem revenue is from homesteaded properties. 

If Amendment 3 passes, the city would need to both cut certain expenditures and find revenue replacements in ways that Oviedo residents would see and feel over time. A number of examples were proposed at the City Council’s Aug. 31 work session, though no final decisions have been made on any or all of the options. The proposals are based on the city’s still-to-be-finalized 2026-27 budget and would apply to the 2027-28 budget. The proposals do not account for inflation, new construction or valuation increases.

Some of the cuts would be more administrative, such as instituting a freeze on hiring new city staff and outsourcing some services.  Eight vacant positions have already been frozen, according to City Manager Bryan Cobb. Other cuts would have a clearer direct impact on the city and its residents, such as: 

Reduction in services 

Hours could be reduced for public facilities like Riverside Park and the Oviedo Gymnasium and Aquatic Facility, as well as the discontinuation of holiday decorations and the Santa Run. Services like street and sidewalk maintenance could see a reduction, as well.

Discontinuation of recreation programs 

This could include eliminating programs at Riverside Park, adult softball and basketball, youth flag football, rock climbing, spring break camp, Smart Start and the 5th Grade Splash and Bash.

Discontinuation of city-sponsored events and celebrations

This would include Oktoberfest, Bark and Brew, the annual holiday tree lighting, the Winter Parade, Winterfest, comedy nights, the Martin Luther King Jr. Day celebration, the Egg-ceptional celebration, St. Patrick’s Day, Juneteenth, Independence Day and the Relay for Life Golf Tournament. 

An increase to the millage rate

The millage rate is what is used to calculate property taxes, and this increase could be done to help balance the city’s budget. The current rate is 3% lower than last year’s.

New and increased fees 

This could include a fire district assessment, increased administrative fees for city and recreation services and increased ambulance fees.The planned cost recovery of the latter would be through insurance, Medicare and Medicaid reimbursements, and not patients. 

The city will hold multiple information sessions about Amendment 3, with the first set for Wednesday, Sept. 16 at 6:30 p.m. at the Oviedo Amphitheatre and Cultural Center.

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