The Escambia Children’s Trust is pushing back against property tax demands from the City of Pensacola, arguing that the nearly $10 million it already spends on children’s services within city limits—including $1.7 million directly to city programs—should warrant a complete tax exemption.
- Background: In June, the City of Pensacola formally notified the Escambia Children’s Trust (Trust) to remit tax increment revenues (TIF) generated within the City’s Community Redevelopment Areas (CRAs), plus interest and late fees. I received the letter from City Attorney Adam Cobb to the Trust’s attorney Meredith Bush late yesterday. Total invoice: $2,448,905. The FY 2026 taxes should have pushed it over $3 million owed.
- Since September 2024, Mayor D.C. Reeves has discussed using the CRA funds for childcare.
- He held a summit in May. In July, the mayor said he was exploring a Miami-Dade model for $3,000 worker stipends as mayor pledges city dollars and facilities to address childcare crisis.
The Exemption Request
Board attorney Megan Fry told trustees at their December meeting that the Trust has formally requested a “complete and total exemption” from city property taxes, a position that differs significantly from the interlocal agreement the Trust negotiated with Escambia County, which includes regular payments.
- “The city request has always been viewed a little differently for two reasons by this board,” Fry explained. “One is the total amount of funding that’s being spent within the city limits and the CRA, which is a little under $10 million for children’s services being provided. And secondly, because of the direct grant relationship between the Children’s Trust and theC of Pensacola.”
Dig Deeper: The Trust’s largest grant to the city goes to the Parks and Recreation department, totaling approximately $1.7 million annually.
The city attorney prepared a preliminary interlocal agreement, but it requested the Trust “pay the total amount due for each year,” though it did waive interest and fees initially demanded. Fry characterized the proposal as “very preliminary” and said the city had not “fully appreciated” the Trust’s rationale for seeking complete exemption.
- “Our request for a complete exemption was not fully appreciated by the city,” Fry said, adding that if a complete exemption isn’t granted, “some sort of set off analysis should be undertaken so that the city understands that any amounts paid to it under an interlocal agreement would be set off by what’s already being paid to the city as a grant recipient.”
High-Level Meeting Scheduled
Fry and Trust CEO Lindsey Cannon have been invited to meet with Mayor D.C. Reeves and the city attorney this week to discuss the exemption request before it goes to city council.
- “Ms. Cannon and I are hopeful that that conversation will result in some movement on this exemption request, if not at the complete exemption that’s been requested,” Fry said.
Trust Chair Dr. Rex Northrup stated that the prolonged dispute has real consequences for children’s services, with significant funds being held in reserve to cover potential tax obligations rather than being deployed for programs.
- “Those are dollars that are currently sitting in a bank somewhere rather than going towards the provision of services and programs for children, which is what was intended for those funds to be used for,” Northrup said.