Right from Facebook, as posted by Leslie Campione - Aug. 14, 2019
Leslie Shamrock Campione
I will avoid using this post to posture or preemptively strike those who will find fault with anything but a full roll back rate (e.g. pointing out multi year obligations, debt service, CRAs, trash contracts, etc. set in motion by former commissioners and others, including unfunded mandates imposed by the State Legislature). I am directing this post to those interested in factual stuff about the situation right now.
If you’re truly interested in our unique set of facts in Lake County, the challenges of a rapidly growing population and the fact that we are now one of the lowest tax rates (soon to be possibly the lowest) of all of our surrounding counties, keep reading.
Here are the facts: It’s true that if your property value went up this year, and, if not every taxing entity shown on your tax bill adopts a full rollback (i.e. a millage reduction) in September, then you would see an increase on your bill. Keep in mind that the tentative rate is “tentative” and the final rate will be set in September - at which time each taxing entity shown on your bill (trim notice) can lower their tentative rate but they can’t increase it.
Other Entities on Your Tax Bill: Since the County Commission has no control over the millage rates set by the Water Management District, Water Authority, School District, hospital taxing districts, cities, or any other agencies shown on your tax bill, the only way for your tax bill to remain exactly the same as last year (or go down, provided your value didn’t go up) would be for all taxing entities on your tax bill (trim notice) to adopt a full roll back rate.
But please know I am 100% in favor of lowering the county millage rate if it can be done responsibly without seriously impacting key services we all need locally, and I’m looking under every rock between now and September so that we can do that.
Comparison to Surrounding Counties: As of last year, the only county millage rate for unincorporated residents lower than ours was Sumter County, however, last month Sumter County adopted a tentative millage rate that exceeds Lake County's rate. If adopted, this would result in Lake County having the lowest millage rate of all of our surrounding counties.
Using the total millage for unincorporated Lake County residents which includes EMS, Fire and Stormwater/Roads/Parks, we have a total millage rate of 6.5470: This makes us lower than Marion (8.4700), Seminole (7.7507), Orange (8.8575), Osceola (8.2540), Polk (8.0293), and Volusia (12.8487) Counties.
Note re Marion County: Marion County separates its millage rate so that a portion goes directly to law enforcement (Sheriff) so when you combine the millage rates actually adopted and imposed by the Marion County Commission, the unincorporated rate in Marion County millage is 8.4700 versus Lake County’s total millage of 6.5470.
Lake County’s Budget Breakdown: There are a few key things to consider when evaluating Lake County’s general fund millage which was tentatively set at the current rate of 5.118: First, the County Commission sets the millage that pays for the County Commission departments and each of the constitutional offices including the Sheriff, Supervisor of Elections, Clerk of Court, Tax Collector and Property Appraiser, which are each separately elected offices, and it also funds maintenance of the judicial complex, jail, and related capital facilities, as well as non-discretionary things like the medical examiner, certain Medicaid payments for county residents, and debt service on the judicial complex. Only 28% of county property taxes collected actually go towards the County Commission’s budget.
First: It’s no secret and it’s understandable that the Sheriff’s budget, which is funded primarily from property tax revenues and also includes the operation of the county jail, relies on the largest share of property tax revenues, and it’s understandable that as the population increases, inside or outside of cities, the demand for law enforcement typically increases exponentially. Our Sheriff, his officers and deputies, and personnel, are working hard to keep us safe in the volatile and unpredictable world in which we live, and they partner regularly with our dedicated and professional city police officers.
Second: If the county’s general fund millage rate is set at last year’s rate (5.118), it is estimated that an additional $8,806,000 will be generated over last year’s revenue, but last year’s revenue was actually $1,800,000 less than what had been projected (i.e. non-payment of taxes). So while we use revenue estimates or projections during the budget process we have to factor in that a considerable amount may not actually be collected.
Third: Of the $8,806,000 projected in new revenue (if the millage is kept the same), $3,400,000 is attributed to new construction, but the rest of the new revenue, if realized, comes from increased property values ($5,400,000). Thus, a roll back rate would require a millage reduction resulting in a cut of $5,400,000 of revenues.
If a full roll back rate is adopted many services will go unfunded: Even using last year’s millage rate (status quo rate which was adopted as the county’s tentative rate), the increased revenues would not fully fund the budget unless more reductions are made or as explained below, FEMA reimbursements for Hurricane Irma are received.
A full “roll back” rate (reduction) would result in $3,400,000 in new revenue, but the proposed budget (which includes 72% of services outside of County Commission’s discretion) would require $12,760,396 in new revenue. Thus, there would be a shortfall of approximately $9 million with a roll back rate.
If the County adopts the same millage as last year then the shortfall would be reduced to $3,632,642. Because of this situation, the Sheriff has worked hard to negotiate contracts and find efficiencies in order to reduce his budget by $1.3 million, which would put us at a $2.3 million shortfall with a status quo millage. As explained below, if reimbursement money is received from FEMA (Hurricane Irma) the shortfall could be made up later in the year using these funds.
The FEMA factor: As of today, FEMA has not yet reimbursed Lake County for $7.8 million of the $10 million spent on Hurricane Irma, which primarily involved hauling and disposing of debris.The County relied on its savings account (aka reserve funds) to pay for these things and at a minimum needs to replenish its reserve fund to meet the county’s policy for minimum reserve funds so that we would be able to absorb a future storm or disaster (without having to borrow money). Ideally, if these funds were enhanced we would be better positioned for future disasters or storms.
We’ve been told by FEMA we should start receiving the first of three installments of this $7.8 million in the near future. A few small payments have been received but there is no guarantee when the bulk of these funds will come in and it is important to note this is a one time reimbursement and should be used sparingly for reoccurring expenses - otherwise the following year the money won’t be there.
County Commission portion of budget: Over the last three years, the County Commission has reduced its own budget by $2.9 million by consolidating departments and outsourcing, but this year the Commission has proposed an increase of approximately $1 million to pay for items such as a much needed new parole officer position, IT upgrades, $176,000 in Medicaid expenses mandated by the State, and wage adjustments to include performance based raises (quality employees are in demand in the present economy and retaining strong employees saves money in the long run).
Law Enforcement needs: Last year, the Sheriff submitted a budget request to implement a salary increase for sworn officers and personnel to make pay more competitive when compared to our region’s larger cities and surrounding counties, to address salary compression, and to add deputies to cover a third shift to address our growing population, pockets of crime and traffic enforcement problems. The County Commission could not fund his request (which would have included a third shift) without increasing the millage rate so he agreed to accept incremental increases over a three-year period. He has also experienced big increases in the cost of providing inmate medical care at the jail, which is the responsibility of the County to provide. He initially requested an increase of about $7 million to this years’ budget, but worked hard to find efficiencies, renegotiated several contracts and was able to reduce his overall request over last year to $5.3 million.
Constitutional Offices: In addition to the Sheriff’s needs, there have been relatively modest increases from each of the constitutional office budgets, but the most notable increase is related to election/voting security which everyone appreciates as a very important issue. It will cost about $1 million to fund the Presidential Preference Primary in 2020.
The bottom line, as it stands now, if the County Commission adopts the same rate as last year (5.118), even with the reductions described above, we would have a $2.3 million shortfall.
But if (when) the FEMA money is received, the County Commission could fund the Sheriff’s budget proposal (which was reduced substantially but we are currently still short by $2 million), replenish the County’s emergency fund/reserve fund by $2.8 million. Leaving $3 million that could be used for needs that are currently unfunded or underfunded as explained below.
Unfunded or Underfunded Needs: It has been proposed that the remaining FEMA reimbursement money could be used for $2 million in “one time” paving/road resurfacing throughout the county; and $1 million could be set aside for possible seed money for a homeless transition shelter (with the intent of partnering with nonprofit and faith based organizations, Lake County’s cities, and Lifestream in conjunction with programs currently overseen by the Mid Florida Homeless Coalition to provide overnight housing while homeless residents are plugged into transitional and permanent housing and when needed, substance abuse and mental health counseling).
Alternatively, the County Commission could fund a millage reduction with a portion of the FEMA money, or provide a combination of a millage reduction and fund portions of the above items.
Again, remember that the FEMA reimbursement is not a reoccurring revenue stream so any items funded from these dollars as they come in will need to be funded from other sources in future years or eliminated from the budget in subsequent years, thus using these funds for a millage reduction could result in a budget shortfall next year - and one thing is very clear, no one is in favor of a millage increase (such as the one being proposed in Sumter County).
Conclusion: A full roll back rate would result in many key services going unfunded. Most notable, the Sheriff could not sustain the salary increases for deputies added last year and could not hire any new personnel now or next year without future millage increases. A status quo millage falls short of funding the proposed budget by $2.3 million even with significant reductions being made, but if the FEMA money is received in the near future this shortfall can be addressed by adding $2.8 million to the County’s reserve fund and $2 million can be put towards the sheriff’s budget (which was already reduced); the remaining $3 million could be allocated to unfunded and underfunded needs described above. Your County Commission is looking for responsible approaches to meeting the growing demands of a rapidly growing population while keeping our county millage rate as low as possible, which will likely make Lake County’s millage lower than all surrounding counties, even if the tentative millage rate which is a “status quo” millage rate is adopted. Finding ways to lower the rate below last year’s rate before the final vote in September is a high priority.
Leslie Campione, District 4 County Commissioner and Lake County Commission Chair
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