Seminole County commissioners can raise property taxes for the first time in 16 years as the county tackles budget shortages, rising costs and the need to increase sheriff’s deputy salaries.
County leaders are also considering hiking taxes on electricity bills (including water and electricity) that include gas pumps and electricity, to raise revenue.
Seminole is expected to increase its assets value by 6.75% this year, resulting in an additional $16.6 million in taxes, but the proposed tax increase will be made.
Despite that jump, county officials said they must struggle with an estimated $35 million shortfall in the county’s general fund, as revenue is expected to reach $345.6 million, but spending is expected to reach $380.5 million. The General Fund pays for most of the county’s daily work.
The move to a county’s property tax hike comes at a prominent time amid Gov. Ron DeSantis’s claim that statewide property taxes should be completely reduced or eliminated. However, the current rates for the Seminoles are lower than most other counties, and there is little left to developable land left for residential plots, making it rare to have the opportunity to fill financial resources with new tax construction.
The total Seminole budget proposed for next year’s fiscal year, which begins on October 1, is an increase of $1.23 billion, $129 million, or 11.7% from this fiscal year. Public safety accounts for 68% of the total budget.
Seminole officials said this week there are few options to meet its general funding shortage. They can cut services, dig into reserve funds for the second year in a row, and raise taxes.
“This is one of the most complicated budgets we faced. “This budget increase is driven not by expansion, but by rising costs to maintain essential services.”
The commissioner is considering increasing the general property tax rate across the county to around $5.38, tailoring the tax rate of about $4.88 per $1,000. This is just over 10%. The increase would bring in another $27.2 million in revenue, according to county documents.
At a higher rate, homeowners with a taxable value of $300,000 will show a $144 property tax hike.
The total tax rate for the Seminoles (including the Board of Education and Water Management District) is currently the lowest in central Florida. If the commissioner approves the general tax hike on July 22, the Seminoles’ total tax rate will exceed Lake County’s total tax rate, but will remain lower than the Orange and Osceola Counties.
Citing inflation, county budget officials said energy costs have increased by 49% over the past five years, and employee salaries, retirements, personnel expenses including insurance, and medical health claims have increased by 78%.
Committee Chairman Jay Zenbower said the development of the entire Seminole “has been dropped” in recent years. Because most of the county has been built, which contributes to the county’s current financial crunch.
“So there’s very little new tax base in place,” he said. “A portion of that is just a factor that doesn’t have much left to build in this county, except for redevelopment.”
County residents will also pay property taxes on fires, ambulances, roads and stormwater, so if the proposal is approved, the total tax rate will be around $13.21 per $1,000 taxable value of the property.
The Seminole last raised its general property tax rate to $4.90 in 2009, but reduced it to its current tax rate a year later.
The committee members are also considering increasing the five-cent increase in gas tax to 11 cents per gallon. This will raise an extra $5.5 million in the first year.
Additionally, they are considering raising the utility services tax in areas where seminole is not incorporated. This tax, currently at 4%, is added to customers’ electricity, water, gas and propane bills. The Commissioner will determine these taxes by September 30th.
Seminole Sheriff’s official said the new deputy had a starting salary of $58,024, the lowest among Florida Central Law Enforcement agencies.
As a result, Sheriff Dennis Lemma said his agency has lost a younger deputy (with years of experience) to the other agencies. For example, Pinellas County offers signature bonuses of over $30,000.
“This has created a cycle of decline and competition seen in other professions, but now this is relatively new to the police sector,” Lemma said by proposing a sectoral budget of more than $199 million, an increase of nearly $190 million, or nearly $106.2 million, or 9%, from the current fiscal year.
Lemma added that many of the long-time agents are now making money near new agents, Lemma said.
“Morale can be a pain,” he said. “Community safety can be at risk. …We are trying to attract and maintain (the agent), but we’ve lost balance in compensation.”
His proposed budget includes an additional $17.4 million in labor costs.
All Seminole property owners pay the county’s general property taxes that help fund the sheriff’s office, but all seven Seminole cities have their own police stations. As such, city residents will pay additional property taxes to fund police agencies.
As a result, Oviedo Mayor Megan Sladek said he will help city residents help sheriff’s office subsidies to some extent. She proposed that county officials study the special taxable districts of the sheriff’s office within the non-integrated seminole.
“That would make more sense,” she said. “It’s going to feel more fair.”
Retired Oviedo resident Bill Hyde, who attended the committee’s final meeting, said the proposed tax hike would hurt older people who could not immediately benefit from rising property values. “I’m stuck here and I had to pay taxes,” he said.
“You might hear it’s only $144 a year,” he told the commissioner. “But when you’re a bond senior, that means something to us.”
