The Escambia Children’s Trust is pushing back against the City of Pensacola’s demand for $2.45 million in tax increment financing payments, submitting a supplemental exemption request that challenges both the legality and timeliness of the city’s collection effort.
Change of tone: This is a significant policy shift for the Trust, which has positioned the Board of County Commissioners as a problem, not Mayor D.C. Reeves. In July, the commissioners approved an interlocal agreement to direct Tax Increment Financing (TIF) funds to the county’s youth programs, at the county’s discretion. That deal almost imploded over personal attacks behind the scenes on the commissioners, particularly on Commission Chair Mike Kohler, and the Trust board’s preferential treatment of the City of Pensacola.
The Mounting Debt
What started as a $2.45 million claim for 2021-2024 payments has now escalated to $3,101,680.07 through December, including tax year 2025 and accumulated late fees and interest. An additional late fee of $26,629.55 will accrue on Jan. 1, 2026, creating mounting pressure for resolution.
- In her Nov. 26 letter to Mayor D.C. Reeves, Executive Director Lindsey Cannon argued the Trust should receive a complete exemption from CRA contributions similar to what was granted to the Downtown Improvement Board, emphasizing that the Trust has “limited unobligated funding to address critical children’s needs countywide.” See ECT Supplemental Request for Exemption.
Constitutional Challenge
The Trust’s most aggressive argument challenges the entire demand as unconstitutional under Article VII, Section 9(a) of the Florida Constitution. Citing First District Court precedent, the Trust contends that special taxing districts cannot be required to appropriate funds to purposes unrelated to their specific mission. Since the city’s CRA plans contain no specific children’s services programs, the Trust argues the payments would serve general public purposes rather than the voter-approved mission of benefiting children.
- The Trust also raises procedural objections, arguing the 2021 payment request is untimely since it wasn’t made until June 2025—more than three years after the January 2022 due date.
City’s Firm Response
City Attorney Adam Cobb delivered an unambiguous rebuttal in his Dec. 5 response. “ECT is bound to its terms and is required by the Florida Legislature to deliver the tax increment revenues to the redevelopment trust fund,” Cobb wrote, asserting that Florida law has “unequivocally required” these payments for 40 years. See City Rebuttal
- Cobb challenged the Trust’s reliance on a 1982 Gainesville case, arguing that subsequent legislative and judicial actions have “completely overruled that precedent.” He pointed to the 1984 legislative enactment of Section 163.353 and the 1986 Florida Supreme Court decision in State v. City of Daytona Beach as establishing settled constitutional authority.
Compromise Proposal
As an alternative, the Trust proposes offsetting much of the claimed debt with the $1.08 million already committed to the city’s Parks and Recreation Department for children’s programming during 2023-2024. With those offsets and the disputed 2021 payment excluded, the Trust calculates its obligation would be reduced to approximately $358,000.
- The Trust has pledged approximately $25.6 million to city programs since its establishment, detailing nearly $10 million in current annual commitments to programs serving Pensacola children.
At this press conference yesterday, Mayor D.C. Reeves stated he remains optimistic about resolving tensions with the Escambia Children’s Trust despite receiving what he called a “curve ball” letter. He reiterated that he wants the funds for his childcare initiative.
- The mayor said that he has “more questions than answers” heading into Thursday’s scheduled meeting with trust officials but maintains the city’s collaborative approach hasn’t changed.