Two or three times a year Villagers have had their dog killed by a coyote in TV. Is your dog large, if not, you're talking a risk allowing them to run free even if you're just a few feet away. One of the fellows I play golf with lives in Tall Trees, that smack dab in the middle near heavy commercial businesses and traffic and yet their neighbor's dog was killed last summer in the front yard by a coyote while they were standing in the yard nearby. Here's a thread discussing the matter so you'll believe what I'm saying.
Another pet killed by a coyote...
Here's the channel 9 news story:
Coyote snatches woman’s dog in The Villages | WFTV