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Speak Out September 23rd. Your last chance to speak out against a double digit tax increase is Tuesday, September 23rd at 5:05 p.m. at the Lake County Commission Chambers in Tavares. You can make a difference.
This newsletter is long because there is a lot of ground to cover so I encourage you to scan for bolded areas that interest you.
Separating Fact from Fiction:
(1) Last year, the County's property tax revenue increased by over $3 million and sales tax revenue was 2% higher than the year before;
(2) Lake County can afford to continue all of our existing General Fund services without a tax increase, including "quality of life" services such as libraries, parks, and social services;
(3) The cost of providing raises to 215 General Fund employees (no raises or COLA in 6 years) is approximately $350,000. Under my proposed plan to utilize $5.7 million in sales tax revenues to pay for debt service on the judicial center (rather than using property taxes to pay for this large capital improvement - an appropriate use of sales tax revenue), there is sufficient revenue to pay for General Fund employee salaries without a property tax increase;
(4) Lake County is able to buy new ambulances and other life-saving equipment without a property tax increase because these types of purchases can be paid for from the penny sales tax instead of property tax revenues; and
(5) The Sheriff has requested $3.2 million over last year's budget to fund salary increases for employees and deputies (700 total). If sales tax revenue is used to pay debt service on the judicial center (and no other "cuts" were made in other areas to absorb increased spending in the Sheriff's budget), it would require a millage increase of .2074 (yet the proposed General Fund tax rate increase is .6277 which is three times the amount needed to fund the Sheriff's increase). Thus, if you support a tax increase for this specific purpose, the proposed tax increase far exceeds the amount needed to fund an increase in the Sheriff's budget.
The Truth about Raises for Deputies and County Employees:
Several of you have contacted me to tell me that you are not opposed to raises for Sheriff's employees and County employees who have not had any increase in salary (or COLA) for six years --with the caveat that the tax increase is based on the amount needed to provide salary increases and doesn't include "other stuff."
Some of you have said that you believe raises should be provided but not by raising taxes, instead through more efficient use of funding.
Others have said that the private sector has seen a reduction in salaries and business owners have taken a huge hit (in many cases taking little or no salary in order to keep people employed), and thus it is unreasonable to give salary increases to public sector employees.
Lastly, there are those who have pointed to the retirement benefits that County employees and the Sheriff's Department receive from the Florida Retirement System which have been left out of the equation when comparing starting salaries of Sheriff's deputies to municipal police departments.
Let's assume (for argument sake) that County government is running as efficiently as possible and there are no other cuts or changes that could be made that would generate enough funding to provide raises. If $5.7 million in sales tax revenue was used to pay debt service on the judicial complex, there would be sufficient funds to cover County employee salaries, increases in Judicial Support and the budget requests of the Supervisor of Elections, Tax Collector, Property Appraiser, and the Clerk of Courts. That leaves the Sheriff's budget with an increase of $3.2 million, which as noted above, would require a millage increase of .2074 (NOT .6277 which has been proposed).
There are some who have rallied law enforcement employees and county employees against me by telling them that my "no" vote against the proposed double-digit tax increase means that I don't support law enforcement, public safety or county employees. I am very appreciative of our county employees and the Sheriff's department, and our men and women in uniform and I want them to be able to take care of their own financial needs. But the proposed tax increase goes far beyond addressing the Sheriff's budget request or funding raises for county employees.
What is really going on here?
On multiple occasions, one County Commissioner has said that the County lost anywhere from 18 to 20 million in revenue since 2008 due to declining property values and the proposed tax rate increase is needed to make up the difference. The County's property values in 2008 were ridiculously high resulting in extraordinarily high tax revenues and government overspending and waste. It is unacceptable to use 2008 tax revenues as a standard by which to measure appropriate levels of County government spending.
Why was the South Lake Regional Park and Miracle Field included in the Property Tax Increase discussion? The entire process of revealing a huge property tax increase was carefully orchestrated to give the impression that there "was no other choice" in order to fund essential services and give salary increases to public safety employees. Next, it was represented that without a tax increase, social services and libraries would have to be cut. Then it was alleged that ambulances would break down on the way to the hospital without an increase. Finally, to get "buy in" from the South Lake community, the South Lake Regional Park was used as a "carrot" (or "stick") to get enough votes for the tax rate increase. But the tax rate debate hit an all time low when those supporting the tax increase contacted parents of handicapped children to suggest that Miracle Field, a $200,000 project that provides a place for handicap children to play sports, was on the chopping block unless there was a tax increase.
A little history about the South Lake Park. The South Lake Regional Park is a hot button issue because for many years Clermont officials complained that "county" residents were using "city" parks (which included reimbursement to the City of Clermont at one point and a promise by Lake County to build a park for "county" residents). The County's purchase of the Minneola Park (the "MAC") a few years ago helped address this situation. In addition, to meet future needs, the County has already purchased property for a "South Lake Regional Park" that would host tournaments and provide fields for local leagues, but the "funding" that is currently under debate is "seed" money to prepare a master plan and to fence the property ($1.8 million), but actual construction costs have not been programmed yet. Thus, deferring "seed" money does not actually postpone the park's completion, furthermore, "hotel tax dollars" that can only be used for tourism related projects could be used to fund a portion of this project and move it along on a faster pace. The bottom line is that all of the seed money could be kept in the budget if the courthouse renovation is postponed; or as an alternative, the seed money could be deferred and the South Lake Park could be put at the top of the list if the penny sales tax is renewed by voters in 2015.
Ripple Effects of Tax Rate Increase:
(1) Due to economic conditions, many Lake County residents who were previously homeowners are renting homes, yet the "Landlords" (i.e. property owners) do not have exemptions or "save our homes" limits on appreciation and therefore the impact of a double digit tax rate combined with a higher assessment will be reflected in substantially higher rent. Ironically, those who get higher salaries due to the tax increase will also have higher tax bills, or if they are renters, they may see a significant increase in their rent.
(2) The "penny sales tax" will go to the voters in the near future. This "penny" provides extremely important funding that the School District, the Cities and the County can only use for capital improvements (such as renovating or rebuilding outdated schools, road resurfacing in neighborhoods and local streets, buying ambulances and life safety equipment, and as noted above, it can be used to build "ballfields" and parks), and this "tax" is spread across the board so that all residents pay this tax and a large portion is actually paid by visitors buying goods in Lake County. Unfortunately, the outrage by taxpayers over a double digit property tax increase may result in a failure of the passage of the penny sales tax. (To put it into context, the penny sales tax generates $34 million a year divided between the School District, the Cities and the County). When the penny sales tax revenue is used wisely it can reduce the property tax burden and improve the quality of life throughout Lake County -- putting this tax renewal in jeopardy is short-sighted and imprudent.
(3) The combined millage rate increases will result in $15 million leaving Lake County's "private sector" and being transferred to the public sector, inflicting a much larger cumulative blow on an already fragile local economy - this is a fact that conservative elected officials should completely understand.
(4) Commercial property owners and businesses do not get "save our homes" or homestead exemptions, and therefore, existing businesses (including manufacturers, distribution and warehousing) that have chosen Lake County over surrounding metro Orlando counties that historically had higher taxes may lose their incentive to stay in Lake County (or come here in the future). This is another fact that conservative elected officials should completely understand.
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There have been numerous emails and phone calls from outraged taxpayers asking Commissioners to reject this proposed increase. It is possible that Commissioners who previously supported the increase are rethinking their prior position and you could make a difference ... if you speak out against the tax increase.
Please attend the September 23rd meeting at 5:05 p.m. and help me stop this unnecessary and imprudent tax increase. Each speaker is given 3 minutes to present their comments.
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Sincerely,
Leslie Campione
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