Okaloosa County BOCC — April 9, 2013 (meeting #1123) — reading text

discussion, staff has estimated a 1% increase in local value. That scenario would produce an estimated increase in value amounting to a total value of approximately $13,690,000,000 in countywide value for Fiscal Year 2014. If this estimate is close to accurate, then taxes generated for Fiscal Year 2014 countywide will be approximately $42,790,000, assuming adoption of the current millage rate of 3.2899 mills. This amount would be $390,000 more than current year taxes countywide or about $13,000,000 per each 1.0000 mill or $1,300,000 per each .1000 mill. Based upon the State maximum millage rate computation last year the Okaloosa County maximum millage rate was calculated to be 5.2657. Although the staff estimates a minimal increase in value this year, the prior year decreases in value have hampered the County by not providing additional dollars to maintain the current services and not providing for the fixed cost increases in the budget and, thereby, not providing any dollars for needed capital projects. Okaloosa County Ad Valorem Tax Revenue History $80,000 $62,066 $59,751 Thousands $54,817 $54,574 $60,000 $50,553 $43,475 $45,318 $43,072 $42,400 $42,790 $38,833 $40,000 $20,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Page 5 Packet Pg. 12  1.b Adoption of the current rate would generate approximately 1.0% more dollars based upon the current valuation estimate. Last year’s millage rate target was set at 3.2899. This target rate is a rate above which the Board of County Commissioners does not intend to levy property taxes. The graph below depicts how Okaloosa County’s aggregate rate, the lowest of all similar counties by size or geographical location, compares to other counties. FY2013 County Aggregate Millage Comparisons Similar Size Counties 10.0988 $12.000 Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) 8.4878 8.1660 8.0928 7.8851 Dollars per $1000 7.5909 7.4553 7.2566 $10.000 6.0953 $8.000 4.1196 3.6018 3.3755 $6.000 $4.000 $2.000 $0.000 Bay Clay Walton Osceola Okaloosa Hernando St Johns Charlotte Escambia Santa Rosa Alachua St Lucie A separate unincorporated ad valorem millage assessment is utilized to fund unincorporated county park activities and improvements. Property valuation for the unincorporated area, based upon the same percentage estimate as mentioned above for Fiscal Year 2014 is estimated to be approximately $6,500,000,000. Unincorporated ad valorem millage assessment at the current rate of 0.1800 mills will generate approximately $1,110,000 in Fiscal Year 2014. The approximate increased amount in the unincorporated area assessment would generate about $10,000 more than current year taxes or about $585,000 per each .1000 mill. Fiscal Year 2014 revenues will be estimated at 95.0% of actual taxes levied in view of early payment discounts and successful appeals of appraised value or denied exemptions to the Value Adjustment Board. Policy Recommendation. Because of the current demand for new services, the increase in operating costs and unfunded mandates from the State, infrastructure and capital project delays, as well as, minimal anticipated increases in taxable valuation, staff recommends consideration by the Board of County Commissioners to increase the current rate of 3.2899 mills, countywide, and establish a higher target rate of 3.6249 mills. This .3350 mill would generate an additional $4,351,211 to overcome the projected budget gap; however this countywide operating millage combined with the Municipal Service Taxing Unit (MSTU) millage would still remain below all other comparative millages indicated in the graph above. If the certification of value from the Property Appraiser shows substantial increases or decreases or the State Legislature makes major legislative changes in valuation, adjustments can be made at that time, depending on the amounts of change and the amounts of any unanticipated mandatory appropriations. Page 6 Packet Pg. 13  1.b Local Option Taxes Local Communications Services Tax. The local Communication Services Tax communications services tax represents the 6,313,489 combined amount of taxes that a non-charter county is authorized to levy on communications $7,000,000 services. This local tax replaced various revenue $6,300,000 sources of local governments and is substituted $5,600,000 3,520,000 3,500,000 for the cable television franchise fee for all $4,900,000 3,250,000 3,096,105 2,894,338 counties. 2,650,000 $4,200,000 2,208,919 1,900,000 Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) $3,500,000