A consensus of Polk County commissioners has given county administrators the go-ahead to cut the property-tax rate by 3% in the county’s upcoming preliminary budget for 2023-24.
This would be the second year in a row that the board decided on a 3% reduction in the millage rate used to calculate the property taxes paid by homeowners residing in Polk County. The nod to calculate the budget at a reduced millage rate came after a tax workshop.
The millage rate is used to calculate ad valorem property taxes. One point equals $1 in taxes for every $1,000 in home’s value after certain exemptions, such as the homestead exemption.
Polk County Manager Bill Beasley started the discussion about the county’s general fund budget last week at the County Administration Building in Bartow, saying “The big take away is I need to know the millage rate we are going to use.”
Before turning over the workshop to the county’s number crunchers, he added, “We’ll have some scenarios we will discuss.”
Last week, the department heads presented their budgets to Beasley, said Christia Johnson, director of budget and management services. Beasley and Sheriff Grady Judd are scheduled to present their budgets for 2023-24 on July 18.
Johnson presented a overview of the general fund operating expenses to the board. She showed with the department head’s budgets factored in, there would be an increase of $58.7 million more in the county’s general fund budget for the next fiscal year compared to the current 2022-23 budget.
The highest proposed budget increase came from the Sheriff’s Office, which could rise from $203 million to $235.7 million, representing a $32.7 million increase. Judd had told the commissioners during the board’s annual retreat earlier this year that he needed to increase wages for deputies to attract new law enforcement personnel and retain them.
The constitutional officers, such as the tax collector and clerk of courts, have requested an additional $4.7 million more for next fiscal year, Johnson said. The raise promised by the commissioners to county workers will increase personnel costs to the tune of $5.7 million in the next year.
Further, county operating expenses, capital outlays and other expenses are proposed to increase by $15.6 million, she said.
During the past two years, the available funds for one-time expenses has grown to $15.2 million. Beasley walked the commissioners through some of the potential one-time projects the money could go toward, including:
- North Lakeland government center property acquisition – $3.2 million.
- South County Jail security system replacement – $4 million.
- Set-aside for domestic violence – $250,000.
- Set-aside for affordable housing – $1 million.
- Sheriff’s property and evidence storage (Lawrence Crow replacement N/A)
- Medical Examiner facility expansion (N/A)
- Court administration/ County administration annex – $50 million.
- North Lakeland government center – $35 million.
- Central County jail expansion – $50 million.
- Fire training facility phase 2 (N/A).
Funds for regional transportation and debt service were also discussed. The county would also need to add and fund a net seven positions in various county departments by 2024, Beasley said.
Using the current millage rate, Johnson showed the commissioners scenarios for cutting the mileage by 1%, 2% or 3%.
Polk County’s adopted millage rate is 7.5386 (or 6.6920 mils countywide and an extra 0.8466 mils in unincorporated areas). The property tax levy raises funds for services to administer county government, public safety, transportation, parks, libraries and stormwater services.
A single-family homeowner whose property is within an unincorporated area with an assessed value of $250,000 and a homestead exemption paid $1,507.72 in county property taxes on their 2022 tax bill.
The 2023 tax bill will include the 0.2000 mills approved by voters for conservation lands.
Without the 3% proposed reduction, a homeowner with an assessed value of $250,000 and a homestead exemption would pay $1,547.72 on a 7.7386 millage rate in the 2023 tax bill. With the 3% reduction, the same homeowner would pay $1,501.28 on a millage rate of 7.5064.
It’s unclear whether the new rate would mean higher or lower taxes for individual homeowners whose property values changed over the past year. Todd Bond, deputy county manager, told The Ledger by email Monday that the rollback rate — the tax rate that the county would charge to bring in the same revenue as the previous year — wouldn’t be calculated until after July 1, when the county gets documentation on values from the property appraiser and the state Department of Revenue.
The millage rate reduction was opposed only by Commissioner Martha Santiago, who represents the county’s fast-growing northeastern area.
In a departure with her colleagues, she said, “I am going to say that the growth of this county − and we are generating more revenue − but we continue to say we don’t have enough money to serve the county’s needs.
Board Chairman George Lindsey pointed out that the presentation by county administrators showed a net increase in revenue of $58.7 million with the 3% mileage reduction.
Santiago said, “But the other token is we don’t have enough money.”
Beasley further cautioned the board majority that if a recession or slowdown in new home building occurred, that County Commission might have to increase property taxes in the future.