High Springs just got a harsh wake-up call from Tallahassee. State officials have started withholding key tax-increment dollars from the High Springs Community Redevelopment Agency and warned the city it could face legal action if a missing FY 2023-24 audit is not submitted by May 4. The freeze cuts off revenue-sharing and half-cent sales-tax distributions that help cover downtown projects and CRA debt service, and it has commissioners and business owners demanding answers at City Hall.
State freezes CRA payments
According to emails reviewed by Mainstreet Daily News, the Florida Department of Revenue began holding back Revenue Sharing and half-cent sales-tax distributions for the High Springs CRA on April 5. The notices say the withholdings are intended to push the CRA into compliance and will continue for every month the agency stays delinquent on its filing. State staff also told CRA managers that the Department of Commerce could be directed to file a petition for enforcement if the required audit is not posted by May 4.
What the law allows
The Legislative Auditing Committee has legal authority to force local financial reporting and can direct state agencies to pull funding when cities and districts do not comply. Under state law the committee may instruct the Department of Revenue and the Department of Financial Services to withhold any funds that are not pledged for bond debt service until a local government submits its required reports, according to Florida Statutes. That enforcement tool is what is now being used against the High Springs CRA.
Auditor flagged the CRA
A public noncompliance list tied to the Auditor General shows the High Springs Community Redevelopment Agency among local entities that missed the deadline for submitting their FY 2023-24 audit or annual financial report, according to the Auditor General. Committee staff used that statewide list to single out districts that needed follow-up, and it placed High Springs on the "required - not received" roster. The Auditor General record and committee correspondence sit in the public docket on late filings.
Local fallout
The timing could hardly be worse for city finances. Officials and residents note that High Springs has been struggling with budget gaps and recently pulled roughly $900,000 from emergency reserves to pay an unexpected bill in November 2025. Former commissioner Sue Weller told the commission the missing audit is "unacceptable," and downtown shop owner John Millett said the state warnings have already hurt his business. Commissioner Tristan Grunder has placed CRA reporting and the state’s actions on the April 23 commission agenda, according to Mainstreet Daily News.
Legal implications
If the CRA still has not filed its FY 2023-24 audit, state law allows the Department of Commerce to seek enforcement and lets the Department of Revenue keep the withheld distributions until the agency complies. That could translate into month-by-month loss of half-cent sales tax and revenue-sharing payments that help fund downtown projects and some city services. The statutes and JLAC procedures are set up to enforce local financial transparency and protect how state dollars are used, according to Florida Statutes.
What’s next
City staff say they have passed along the state emails internally and plan to brief the commission at the April 23 meeting. If the CRA submits the missing audit before the May 4 deadline, the withheld funds could be restored. If not, the Department of Commerce has been asked to move forward with enforcement. Residents and downtown investors will be watching both the commission agenda and the state’s public filings closely as the deadline looms.
