Mayor D.C. Reeves has formally responded to Florida’s Department of Governmental Efficiency (DOGE) audit letter, expressing enthusiasm for the review and promising complete transparency.
He emphasized that fiscal responsibility is “core priority” of his administration and that the state welcomes the opportunity to support the state’s efficiency efforts. To facilitate the audit team’s work, Pensacola is preparing dedicated conference facilities and establishing a secure SharePoint site where requested documents will be organized by category for streamlined review.
Strong Fiscal Track Record
Mayor Reeves highlighted Pensacola’s record of fiscal restraint, noting that the city hasn’t raised its property tax millage rate since 1994. The current rate of 4.2895 mills actually remains below both the 1994 rate of 5.057 mills and the statewide municipal average of 4.8286 mills.
- While the DOGE letter noted that budgeted property tax revenues have increased by $11 million over six years, Mayor Reeves pointed out there’s been an approximate $20 million gap between property tax revenue growth and necessary public safety expenditure increases during the same period.
Pensacola was recently rated as the fourth-safest city in the nation, suggesting that the additional spending has yielded “meaningful returns for residents and visitors.”
- Looking ahead, the recently signed HB 929 will require municipalities to implement new firefighter health and safety measures, which Pensacola supports, but will cost an additional $5 million annually to implement.
Economic Growth Driving Revenue
The revenue growth reflects more than just population increases—it represents significant economic expansion. Over the past five fiscal years, Pensacola has issued:
- 178 Certificates of Occupancy for commercial buildings
- 1,282 for residential projects
- More than 3,600 permits for commercial and residential improvements
This construction activity represents “hundreds of millions of dollars in new investment” in the community.
LinkedIn recently recognized the metro area as one of the 25 fastest-growing in the nation for jobs and talent—the only Florida city to make the list. The city’s airport now serves more than 3 million passengers annually, representing a 104% increase over the past decade and making it the busiest along the I-10 corridor between New Orleans and Jacksonville.
- This surge in tourism and second-home ownership brings economic benefits but also increases demands on public safety and infrastructure beyond what the permanent population would typically require.
Looking Forward
Mayor Reeves concluded his letter by framing the upcoming audit as a reflection of the shared commitment between city and state leadership to ensure tax dollars are used wisely. The collaborative tone suggests Pensacola views this as an opportunity to showcase its fiscal management rather than a challenge to defend against.
Presser Comments
Pensacola Mayor D.C. Reeves expressed the same confidence in this press conference this afternoon.
- “We’re proud of the track record that we have here at the city of Pensacola in terms of our fiscal responsibility, our bond rating, our annual audits,” Reeves said.
The mayor said he doesn’t believe Pensacola was specifically targeted and expects the audit team to find that the city operates responsibly. “I fully expect that an audit team would leave here maybe using the city of Pensacola as an example of how government should be run.”
Full Letter
City of Pensacola Response to Florida DOGE Letter
Dear Governor DeSantis,
On behalf of the City of Pensacola, please accept this letter as a formal acknowledgement of receipt of your administration’s correspondence dated August 7, 2025, regarding the Florida State Department of Governmental Efficiency’s (DOGE) intent to conduct a comprehensive audit of the City of Pensacola municipal government.
Like your administration, it is a core priority of my administration—working in concert with our City Council—to ensure that the taxpayers’ money is used responsibly, ethically, and efficiently for the benefit of our citizens. We welcome the opportunity to support your efforts and will enthusiastically provide full transparency in responding to your requests.
To facilitate your team’s work, we will reserve a dedicated conference room for the duration of their visit and will be happy to address any specific IT or logistical requirements in advance. We have also established a secure internal SharePoint site where the requested documents will be uploaded. Each request from your letter will have its own folder to support an organized and efficient review process.
Due to the timing of this visit—occurring during our final budget preparation and intensive training for a new accounting and finance system—staffing constraints require us to assign a different primary point of contact for each day of your team’s stay. These names will be provided under separate correspondence. I trust you will understand, as this training is intended to further enhance transparency, efficiency, and responsiveness in our financial systems.
We are proud of our record of fiscal responsibility, particularly regarding property taxes. The City has not raised the millage rate since FY 1994, and today’s rate of 4.2895 mills remains well below the FY 1994 rate of 5.057 mills and below the statewide municipal average of 4.8286 mills as reported by the Florida Department of Revenue in 2024.
As mentioned in your letter, while budgeted property tax revenues have increased $11 million in the past six years, it should also be understood that property tax growth has not kept pace with necessary increases in public safety budgets, including fire and police. This has resulted in an approximate $20 million gap between property tax revenue and public safety expenditures during the same period. Given that Pensacola was recently rated as the fourth-safest city in the nation, we believe these investments have yielded meaningful returns for our residents and visitors. It should also be noted that HB 929, recently signed into law, urges municipalities and counties in Florida to take specific measures to improve firefighter health and safety—measures this administration supports but which will require an additional approximately $5 million per year in expenditures to implement.
When considering the growth in property tax revenue, it is important to note that population count alone does not tell the full story. Revenue growth also reflects economic expansion and construction activity. Over the past five fiscal years, the City has issued 178 Certificates of Occupancy for commercial buildings and 1,282 for residential projects. Combined with more than 3,600 permits issued for commercial and residential improvements, this represents hundreds of millions of dollars in new investment in our community.
As a result of this growth, Pensacola was recently recognized by LinkedIn as one of the 25 fastest-growing metro areas in the nation for jobs and talent, the only Florida city on the list. Our airport now serves more than 3 million passengers annually, a 104% increase over the past decade, making it the busiest along the I-10 corridor between New Orleans and Jacksonville. This surge in tourism and second-home ownership brings economic benefits but also increases demands on public safety and infrastructure beyond what is required for our permanent population.
We have also implemented internal efficiency measures, including reducing City Hall staffing levels, achieving substantial cost savings without compromising service quality.
We look forward to welcoming your team to Pensacola and addressing your requests with complete transparency. Your visit reflects our shared commitment to ensuring our citizens’ tax dollars are used wisely, allowing Pensacola to remain Florida’s first and finest city for its residents.
Sincerely,
D.C. Reeves
