Okaloosa County BOCC — 2013 meeting #1123 (date undetermined) — Budget Policy Document FY14 — reading text

489 446 table of 2012. Okaloosa County's per capita property 385 384 $450 336 tax has decreased slightly due to continued reduction in 297 283 270 266 226 $300 countywide valuation of property and continued millage 194 reduction while increasing in population more than $150 certain other counties compared. As compared with $0 counties of similar size or geographical location in the chart to the left, Okaloosa County ranks second lowest Escambia Bay Hernando Charlotte Clay St Johns Okaloosa Alachua St Lucie Santa Rosa Osceola Walton of the per capita property tax for Fiscal Year 2012. Assessed Property Value. Without increases in Assessed Property Value assessed value, the Board of County Commissioners $20,000 loses flexibility in raising revenues without a millage increase. The average taxable property valuation and $17,500 new construction valuation for the last ten years has $15,000 been $14,610,142,200 and $387,267,750, respectively, as demonstrated in the graph to the right $12,500 Millions and the table on page 3. Since 2007 until 2012 the $10,000 valuation has declined back to around the 2005 $7,500 valuation level. The value last year decreased, although the trend in the decline seemed to slow $5,000 somewhat. The new construction amount increased $2,500 slightly after steady declines for a number of years. The County foresees total value leveling off $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 somewhat with new construction returning to minimal growth patterns. Taxable Value New Construction Page 2  POPULATION AND ASSESSED PROPERTY VALUE - TEN YEAR HISTORY BEBR Population Assessed Property Value Tax % Taxable % New % Year Population Increase Value Increase Construction Increase 2012 187,280 3.1 $13,565,838,217 -1.6 $150,981,280 29.1 2011 181,679 0.1 $13,781,239,430 -4.9 $116,982,246 17.7 2010 180,822 -0.1 $14,499,871,635 -10.4 $99,333,290 -63.8 2009 181,281 -0.1 $16,174,789,111 -7.1 $273,899,521 -57.7 2008 181,880 -0.1 $17,410,630,993 -7.4 $647,210,535 -19.8 2007 182,760 -0.1 $18,806,840,352 5.1 $807,308,507 18.8 2006 183,587 0.2 $17,899,368,086 31.8 $679,764,247 47.9 2005 183,192 1.2 $13,576,903,661 26.1 $459,612,742 37.8 2004 181,008 2.0 $10,767,916,378 12.0 $333,519,672 9.7 2003 177,372 1.3 $9,618,024,001 8.2 $304,065,557 -1.1 General Fund Balance. Undesignated fund General Fund Balance as a % of Expenditures balances are measures of reserves at fiscal year 24.1 25.0 end and are indicators of how well Okaloosa 22.6 County will be able to withstand an emergency or a revenue shortfall. In 2003 and 2004, the General 20.7 20.6 Fund fund balance was at its lowest point in many 20.0 years due to storm activity occurring during that time. In light of the annual audit analysis and the 16.9 Auditor General’s annual Financial Condition 14.7 Assessment process, the consistent buildup and 15.0 analysis of this fund balance percentage is critical. Percentage The 2008 fund balance peak and the buildup of 10.9 fund balance leading up to that peak was a concentrated effort during the positive economic 9.1 10.0 times and the locally positive increasing assessed 8.4 8.2 valuation of the County. That buildup has played a vital role during these difficult and declining 5.0 economic times. Over the past ten years the average percentage has been approximately 15.6% or almost two months of operational emergency funds available. Current levels have increased 0.0 slightly over last year, due to improving economic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 times and currently maintain about forty days of operational emergency funds available. Page 3  Local Government Revenue General Information The ability of local governments to raise revenue for their operations is narrowly constrained by the State Constitution. No tax shall