Most Lake County cities are hiding how much MORE in taxes they will collect from you this year by not explaining all the facts. The Lake County Property Appraiser publishes data on this year's increased valuations and prior and currently proposed millage rate changes ABOVE the rollback rate.
Note: Some clarifications were added Sept. 16 after feedback from the Property Tax Appraiser's office. They are also sending us sample worksheets how cities calculate their rollback rates and we will add them below when received.
You can jump right to the actual numbers for your city by looking at this attachment. It is a one-page, condensed Excel version of one much larger website version supplied to me by the Lake County Property Appraiser's office.
Download ! 2019 Proposed Millage Rates and Values Comparison Sheet-VJ-1pg
This month of September is when tax authorities, including the County and Cities, hold two required hearings to review and "adopt" their new 2019 millage rate changes and new annual budgets. If you don't attend the first and second hearings to provide input (especially commercial property owners who will get hammered), then the City Council will approve the proposed millage rates and budgets..
For example, some cities, like Tavares, are bragging they have "reduced" the millage rate by 2%, but they fail to explain that since their valuations increased as of July 1 by 10.19%, that your tax bill will jump, even with a slightly reduced millage reduction. As the above worksheet shows, Tavares and 12 of 14 cities are INCREASING millage rates over the roll-back rate. So if you hear an elected official like Tavares Mayor Troy Singer bragging about "reducing" the millage rate, check the worksheet to see how they are misrepresenting the effect on your tax bill by not talking about the net increase you will be billed because valuations went up.
However, only TWO Lake County cities, Minneola and Mascotte, are REDUCING their millage rate BELOW the roll-back rate. So if your property is in those cities, your tax bill "might" drop, but since Mascotte's valuations jumped (including growth) by 20.98%, while Minneola valuations jumped 9.62%.
But, compare the actions of Minneola's reduction below the roll-back rate to that of Tavares, which has valuation increases of 10.15%, but they still increased their millage rate over roll-back by 2.61% thus they will rake in more tax revenue even while growth and value increases ALSO increased.
That is because Tavares is actually increasing the millage rate beyond the "roll-back" rate that would generate the same revenues as last year. That roll-back rate calculation is also on the above sheet.
If you already understand your home or property trim notice, rollback rates, the importance of valuation changes, etc. then just look at the above attachment to see how you will get hammered in tax increases by most cities.
Or, here is a brief overview of the process and data:
- The State defines how the cities describe proposed changes in budget and millage rate. The process does not require them to show changes over the last 3-5 years, thus they can create a fat budget, decide a high millage rate, and if values have increased, they can brag about reducing the millage rate from the prior year but not explain at all how much more your tax bill will be. You have to look at your Trim notice, which also does not show prior 3-5 year period comparisons, or how you compare to other cities or unincorporated Lake County.
- Cities vary on what they tell you in their official notices for the two State required hearings (usually in September, at 5:05 pm) for approving proposed millage and budget rates.
- Homeowners who have homesteaded their primary home won't see their tax increase by more than a cap of 3%, but they fail to remember when there is a downturn in valuations, that 3% will still be billed until their deferred taxes are paid. However, if local tax rates went up higher than the 3%, second home owners (not-homesteaded) or commercial property owners will get hammered with the full valueation change times the approved millage rate. Renters will then get the increase added to their rent. So even renters should be concerned about increased valuations and millage rates.
- Some cities are using recent ADA lawsuits as an excuse not to provide full details on meeting issues on their websites. For instance, Tavares's Wed., Sept 16, 2019 agenda on the website is 48 pages, while the one they give the City Council has 286 pages. You have to know to ask the City Clerk to get the longer version. For instance, the agenda tab 5 has a rate increase for wastewater of 5.5% but the actual study showing that is NOT in the online agenda.
- Some cities seem to start out by having early, open budget "workshops" where the budget is loaded first with staff wage increases, more benefits, new buildings, etc. to get to a target budget total usually more than the prior year. The Tavares budget leaped by 59.63% over the prior year (they say it right in the online agenda) due mostly to three capital projects - rebuilding of the docks, a library expansion, AND a new building for public works. The dock project is funded by insurance proceeds for Hurricane Irma damage. But, rather than scale back the budget, the City Council approved the other two projects for the year. Then, there is no clear statement how much DEBT the City is in to pay for projects. A candidate for City Council, Walter Price, says the current debt is around $55-million, but they are on track to be at $100-million if residents approve a ballot resolution in Nov. to start a $27-million performing arts center and some other pending projects.
Our Recommendations:
- Find out if your City or County leaders still have a millage & budget hearing coming up. If so, do your analysis and email, call or visit a meeting and give public input.
- Support and Elect new City officials if you think budgets, spending or millage rates are too high. In Tavares, we recommend Walter Price.
- Examine your property Trim notice. Get prior year Trim notices or property tax bills and compare them to the currently proposed millages to see changes over the years. Is it worth it to live where you are?
- Compare your city millage trends, valuation trends and budgets to low budget leaders like unincorporated Lake County (5.16 millage) or Clermont (4.2) or Leesburg 3.15%. Visit your City Council and ask questions about differences (i.e. some have fire in the budget, others have it as separate line item).
- Study the above chart or more detailed versions on the Lake County Property Appraiser's website.
- Go to the Lake County Property Appraiser's website and do a "Property Search" on your property address and pull up the Property Record to see all the details on how your property tax is calculated, what exemptions you get (and SHOULD apply for). Create a spreadsheet and enter the data in column by year to track annual changes. Apply for any exemptions that you think you qualify for.
- Visit the Property Appraiser's website and look for his tax estimate calculator. It is designed for potential property buyers to estimated their property taxes for the different cities. It does not adjust for exemptions. Examine all the other reports he has that might apply to you. You can enter your estimated valuation in the tax calculator, specify whether it is homesteaded (i.e. your primary residence where you vote from) and select the County or any City and calculate your estimated taxes. Compare your location to others to see how much difference there is. Is it worth it?
- Taxpayers need to pay attention to who they elect to City Councils. Are they fiscal conservatives, or shills for construction firms and who like spending money.
- Homebuyers should pay attention to the attachment above, and provide email, phone or personal statements at City Council meetings. Do you want to live in a city with leaping valuations, leaping millages, leaping bond or loan debt and leaping budgets, or in a fiscally conservative one where your taxes won't grow to exceed your house payment. (I saw that in California, and that could be happening in Lake County now!)
Vance Jochim - this is all my opinion of what is happening to Lake County residents.
FiscalRangers.com
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