A Deep Dive into the State’s Municipal Audit Letter
Bottom Line Up Front: On Aug. 7, Florida’s Department of Government Efficiency (DOGE) has issued an audit demand to Pensacola Mayor D.C. Reeves, alleging the city’s property tax burden has increased 70% while population remained flat, and demanding access to city records and personnel next week, August 18-19.
- The nine-page document from Florida’s DOGE team represents a significant escalation in the state’s efforts to scrutinize local government spending across Florida. Read August 7 Letter.
The Core Allegations
The letter, signed by three top state officials—Eric Soskin (Senior Advisor to the Governor and DOGE Team Lead), Blaise Ingoglia (Chief Financial Officer), and Leda Kelly (Director of Policy and Budget)—sets the foundation for DOGE’s investigation into “excessive spending at the municipal and county level” with these allegations:
- Property tax burden increased by over $11 million (70%) over six years, while population remained unchanged or potentially declined
- General fund expenditures grew by nearly 50% during the same period
- Despite maintaining a constant millage rate, tax collections increased rapidly because of rising property values
Audit Scope
The DOGE team is demanding access to eight major areas of city operations:
1. Procurement and Contracting
The audit requests all contracts over $10,000, including bid solicitations, vendor selections, pricing justifications and detailed records of the Baptist Hospital demolition contract.
Request No.1 Policies, procedures, rules, and legal requirements for procurements or
contracts in excess of $10,000.
Request No. 2 A list of all procurements and contracts in excess of $10,000,
Request No. 3 All records of bid solicitations, vendor selections, and contract documents
for procurements or contracts responsive to Request No. 2.
Request No. 4 All information supporting the determination of the reasonableness of
pricing for procurements or contracts responsive to Request No. 2.
Request No. 5 A listing of all sole-source procurements or contracts in excess of $10,000.
Request No. 6 For all sole-source procurements or contracts responsive to Request No. 5,
the sole source procurement justification form and all other information supporting use of
a sole source procurement.
Request No. 7 For all sole source procurements or contracts responsive to Request No. 5,
all information supporting a determination that the pricing was fair and/or reasonable.
Request No. 8 All reviews and reports on the timeliness of work authorizations, notices to
proceed, change order approval, billing, invoicing, and payment.
Request No. 9 All analysis and justification related to the contract award for the Baptist
Hospital demolition
2. Personnel Compensation
Perhaps the most detailed section, requesting everything from the Evergreen Consulting salary study to individual performance reviews for employees earning over $200,000, overtime tracking systems and leave payout records.
Request No. 1 The Evergreen Consulting study of city salaries, all drafts exchanged by the
city and the firm, and all data provided by the city to the firm.
Request No. 2 All other studies of city salaries and compensation, whether internal or
external, conducted since FY19-20.
Request No. 3 The amount of regular pay, overtime pay, bonuses, gross wages, and total
cash compensation for all employees from FY 19-20 to present.
Request No. 4 All rules, procedures, and guidance at the department-wide level or above
regarding promotions, step or level increases, or bonuses from FY 2019-20 to the present.
Request No. 5 A list of all decisions to provide department-wide or city-wide salary
increases or bonuses from FY 2019-2020 to the present.
Request No. 6 For all decisions responsive to Request No. 5, any analysis conducted of the
costs of such increases, alternatives, and projections of future associated costs and how
such costs would be paid.
Request No. 7 For all individuals receiving over $200,000 in total cash compensation in the
last year, the performance standards for their position, all reviews of their performance,
and any requirements for improvement imposed.
Request No. 8 Individuals with appropriate expertise to discuss your jurisdiction’s
performance management systems and their use in promotions, pay increases, and
bonuses.
Request No. 9 Data at the department level or above regarding the extent to which sta
meet or exceed performance targets.
Request No. 10 Policies regarding the accrual of leave and payout of leave on separation
Request No. 11 Access to the systems used for tracking leave accrual.
Request No. 12 Records of all leave payouts on separation exceeding 25% of the annual
salary of the separating individual from FY 19-20 to the present.
Request No. 13 Access to the systems used for tracking overtime.
Request No. 14 Records of all personnel recording more than 25% of their hours as
overtime.
3. Diversity, Equity, and Inclusion Programs
The letter seeks comprehensive information about DEI positions, training programs, and expenditures, reflecting broader political tensions around such initiatives. This includes requests for all training materials, costs, and attendance records related to diversity programs.
Request No. 1 All jobs with the responsibility to advance diversity, equity, inclusion, or so-
called anti-racism. Diversity, equity, and inclusion includes any form of preferential
treatment based on race, ethnicity, gender, or the like (including the use of substitutes such
as “cultural competence” or “lived experience” to conceal such preferential treatment),
training sessions or other programs that separate people into groups based on intrinsic
characteristics, and training or required statements about privilege, bias, diversity, racism,
or belonging.
Request No. 2 The current positions and activities of any person who previously had such
responsibilities and is still employed by Pensacola.
Request No 3: In FY 24 and FY 25, a copy of all official goals, policy statements, mission
statements, positions, or commitments made by any office or department within
Pensacola that included diversity, equity, or inclusion, and all actions taken by those
offices or department in support of those activities.
Request No. 4: The titles, dates of administration, and duration for any scheduled training
for city personnel, or made available by the city to others (including but not limited to
contractors, grant recipients, or members of the public) that included diversity, equity,
inclusion, or anti-racism as a topic or subject.
Request No. 5 The titles of any unscheduled or self-service training for city personnel, or
made available by the city to others (including but not limited to contractors, grant
recipients, or members of the public) that included diversity, equity, inclusion, or anti-
racism as a topic or subject.
Request No. 6 For any training responsive to Request No. 4 or Request No. 5, a copy of all
training materials used, provided to participants, or made available for participants to
obtain voluntarily.
Request No. 7 For any training responsive to Request No. 4 or Request No. 5, the identities
and qualifications of those conducting the training.
Request No. 8 For any training responsive to Request No. 4 or Request No. 5, the names
and positions of those attending the training.
Request No. 9 For any training responsive to Request No. 4 or Request No. 5, the identities
and qualifications of those conducting the training.
Request No. 10 For any training responsive to Request No. 4 or Request No. 5, all costs and
expenses associated with the training.
Request No. 11 For any training responsive to Request No. 4 or Request No. 5, if the training
was conducted by a contractor or other external entity, all documents related to the
qualifications, selection, and payment of such individual, contractor or entity.
Request No.12 Any program operated by the city on the basis of an individual’s race,
ethnicity, or gender, or targeted to a specific group based on the group’s racial, ethnic, or
gender characteristics.
Request No. 13 Any grant made by the city to an organization that operates on the basis of,
or for the benefit of, individuals of a specified race, ethnicity, sexual orientation, or gender
identity other than male or female, or that targets a specific group or set of groups based on
race, ethnicity, or sexual orientation.
Request No. 14 Any communication sent to all city sta , or to all sta within a city
department, between January 1, 2020 and the present, regarding diversity, equity,
inclusion, DEI, or so-called anti-racism.
Request No. 15 All actions taken since January 1, 2020 in support of the Mayor’s O ice
stated objective to “develop equity within all City of Pensacola job classifications.”
Request No. 16: All guidance, direction, or communications between the City of Pensacola
and the Pensacola CRA regarding the City’s stated objective of “increas[ing] diversity,
inclusiveness, and livability” within the CRA neighborhoods or the CRA’s “new strategies”
for “equity [and] inclusion.”
4. Green New Deal
DOGE is investigating emissions reduction targets, electric vehicle purchases, solar power systems, and carbon reduction mechanisms, including cost-benefit analyses and climate impact assessments.
Request No. 1: Documentation related to the adoption of any emissions reduction or
carbon reduction target, including:
a) consideration of alternatives to any such emissions goal or target;
b) any cost-benefit analysis undertaken in support of such emissions goal or target,
including any analysis conducted or estimate made of the impact of adopting the
goal on global climate;
c) all assessments of capital and operating expenses associated with the goal or
target.
d) all actual expenses to date associated with the goal or target.
Request No. 2 All assessments of the impact on global climate of the actions and expenses
responsive to Request No. 1.
Request No. 3 If not included in the response to Requests No. 1 and No. 2 above, any
purchases or other expenses for the lease or acquisition of battery-electric vehicles (EVs),
EV infrastructure, energy purchases associated with EV infrastructure, solar power
systems, carbon credits, carbon charges, or other emissions reduction mechanisms. For
each such expense, provide any records, assessments, or analysis of:
a) Any alternative purchase option, including but not limited to, no-purchase options,
purchase or lease of internal combustion engine powered vehicles, power generated from
other sources;
b) any analysis of the impact of the action on global climate;
c) records of the reliability of any EV, EV infrastructure, or solar power system in use by
the county during the time period from January 1, 2020 to present;
d) records of all training related to the topic of climate change, battery-electric
vehicles, or solar power, including the justifications, content, and attendance records for
such training, and the location and costs (including travel costs) of such training.
5. Grants and Financial Management
Request No. 1: Policies, procedures, rules, and legal requirements for grants made to
nonprofits or other external entities, and for all such grants made since January 1, 2023:
a) records of all such grants made
b) records of all payments made pursuant to such grants
c) Procedures for monitoring of spending and performance by recipients of grants
d) all records of the monitoring and performance of such grants
Request No. 2: For all grants received by the city other than those made by a state agency,
in partnership with a state agency, or administered by a state agency:
a) the matching requirements for such grants, if any
b) the source of funding for the match
c) records of the decision to pursue such grant
d) analysis of the impact of the grant, including any assumptions made in support of
the analysis
Request No. 3: All studies, assessment, plans, and forecasts, including usage, costs, and
benefits, related to the City of Pensacola’s recently announced reinstatement of curbside
recycling
6. Management Practices
The audit covers property inventories, lease agreements, and detailed records of Mayor Reeves’ participation in the Just City Mayoral Fellowship Program.
Request No. 1 Records of all inventories of tangible personal property, including:
a) the date of the most recent inventory performed to date
b) the reconciliation of that inventory to property records
c) records of disposal between inventories
d) identification of attractive personal property items
Request No. 2 For any city-owned property leased to another entity, private or public:
a) the amount of the lease
b) the terms of the lease
c) any assessment of the fair market value of the property
d)the basis and determination that such lease constitutes the best use of the
property.
Request No. 3: A listing and description of all city-owned property, its date of acquisition
and cost, current valuation and costs of upkeep and maintenance, and current plans for
use or disposition.
Request No. 4 For any purchase or sale of public-owned property, the most recent
appraisal made prior to such purchase or sale.
Request No. 5 All expenditures related to the participation of Mayor Reeves in the Just City
Mayoral Fellowship Program, including but not limited to direct expenses, time allocations,
and travel expenses for the mayor and staff
Request No. 6 All materials received by the mayor or other city staff as part of the Just City
program, or in preparation for, in connection with, or in follow-up to, that program
Request No. 7 All strategies, policies, frameworks, or other materials developed by the
mayor or other city staff as part of the Just City program
7. Transportation and Utilities
Requests include traffic calming device costs, bicycle infrastructure expenses, and utility rate studies since 2019.
Pensacola Energy
Request No. 1 All rate studies or utilized to determine rates since January 1, 2019.
Request No. 2 Methodology used to determine transfers of funds between the utilities
system and other government funds, including the general fund.
Transportation
Request No. 1: Since January 1, 2023, for all installations of tra ic calming devices,
included but not limited to speed tables, speed humps, raised intersections, curb
extensions, and chokers, the following information:
a) the location, capital, planned lifecycle, and expected annual maintenance costs
b) the basis for the installation, including any plan, analysis, or recommendation
c) information related to the consideration of any alternatives
Request No. 2: For all traffic calming devices not included in Request No. 2, the planned
lifecycle and expected annual maintenance costs
Request No. 3: For all bicycle and pedestrian improvement projects funded in FY24 or FY25
or planned as part of the current capital improvement plan, the calculations of
maintenance and operating expenses and the assumptions on which these calculations
are based.
Request No. 4: For all bicycle and pedestrian improvement projects completed since
January 1, 2020, all actual maintenance and operating expenses.
8. Homeless Services
The audit seeks data on spending, effectiveness measurements, and detailed information about mental health, crime, and immigration status in connection with homeless services.
Request No. 1 Direct spending by the City of Pensacola on programs related to the
homeless.
Request No. 2 Grants to other entities, including non-profits, related to homeless services.
Request No. 3 Pensacola’s efforts to measure the effectiveness of these programs.
Request No. 4: All data collected or otherwise in the City’s possession regarding mental
health, crime, immigration status, substance abuse, and public service usage in
connection with homeless and affordable housing services.
Mayor Reeves’ Response: Confident But Cautious
Mayor D.C. Reeves has publicly stated he “will stand here and defend the decisions we make on our budget wholeheartedly” and welcomed any review of the city’s efficiency. His administration’s track record includes securing over $100 million in state and federal grants for city projects—a point that may complicate DOGE’s narrative of wasteful spending.
Reeves, who became mayor at age 38 in November 2022, has implemented significant reforms, including establishing the city’s first grants office, record wage increases for police, fire and city personnel, and major infrastructure investments. His administration inherited what he describes as a workforce paid in the bottom 20th percentile nationally.
The Broader Political Context
Florida’s DOGE initiative, launched in February 2025 by Governor DeSantis, mirrors the federal DOGE effort but focuses on local government spending. The audits have targeted several jurisdictions that lean Democratic, including Broward, Orange, and Pinellas counties, as well as cities like Gainesville, St. Petersburg, and Jacksonville.
- The effort has not been without controversy. State CFO Blaise Ingoglia has alleged that some local governments are “scrubbing” records to hide information from auditors, though he provided no evidence.