The City of Dunedin held a budget workshop on July 18, 2025, to discuss the financial outlook and challenges facing the city. The meeting focused on the implications of a significant reduction in property tax revenue and the need for careful planning regarding capital projects.

City officials reported a reduction in property tax revenue amounting to approximately $1.3 million over the past five years. This decline, coupled with lower estimates for other revenue sources such as half-cent sales tax and revenue sharing, has raised concerns about the city’s financial stability. Officials noted that these revenue streams had previously experienced growth but are now flattening out.

A key point of discussion was the structural deficit, which was reported at $2.1 million in the final budget of the previous year. The city is facing increased capital project costs, with an additional $5.5 million allocated for new projects not included in last year's budget. This increase has prompted discussions about prioritizing essential projects and potentially delaying non-critical expenditures.

Commissioners emphasized the importance of evaluating which projects can wait for future funding opportunities, such as the upcoming Penny for Pinellas 5 initiative. They acknowledged that many municipalities rely heavily on this funding source and expressed the need for a strategic approach to manage the city’s financial resources effectively.

The workshop concluded with a consensus on the necessity of developing a comprehensive financial plan to address the growing structural deficit. City officials are tasked with creating a strategy that balances the need for essential services and projects while maintaining fiscal responsibility. The discussions highlighted the urgency of proactive measures to avoid reaching a critical financial situation in the future.