In a budget meeting filled with dozens of residents and lasting more than two hours, Seminole commissioners on Wednesday gave preliminary approval to hike the county’s overall property tax rate for the first time in 16 years.
The new proposed rate of $5.38 per $1,000 of a property’s taxable value would be a 10.2% increase from the current rate of $4.38. That means the owner of a home with a taxable value of $300,000 would see a jump of nearly $150 in their property tax bill next fiscal year, which starts Oct. 1.
Commissioners will cast a final vote on the new tax rate Sept. 23.
Wednesday’s 4-to-1 vote on the tax increase comes after commissioners agreed last month to add five cents to the price of a gallon of gas sold in the county, and hike the county’s public service tax on water and electric bills in the unincorporated areas from the current 4% to 10% starting Jan. 1.
County leaders said the property tax increase — estimated to bring in an additional $44 million next year — was necessary to pay for the soaring costs for law enforcement, insurance and persistent inflation. Seminole also is struggling with retaining sheriff’s deputies, who seek higher pay at other law enforcement agencies.
The extra tax revenue also will be used to shore up the county’s reserve funds, which are used to pay for the recovery after a catastrophic event, such as a hurricane.
Seminole officials, like those in nearly every other local government, recently started warning residents that the county can no longer rely on federal agencies, such as FEMA, for reimbursement to rebuild after natural disasters because of recent cuts in the federal government.
Hurricane Irma in 2017, for example, cost Seminole nearly $31 million.
“Those reserves are not for a rainy day. They are for a ‘Oh, holy crap’ day,” Commissioner Amy Lockhart said in support of the tax increase. “And we’ve seen those days in this county. … We are in the position in Seminole County government right now where we do not know if the federal government is going to come in” and help pay for the county’s recovery after a natural disaster.
But some residents were not happy Seminole was moving forward with a tax increase following jumps in the gas tax and utility fees.
“The county does not have a revenue problem,” said Richard Creedon, a Geneva resident. “Rather it has a spending problem, or an addiction.”
He called it “an ill-conceived tax increase.”
Sanford resident George Sellery pointed out that home valuations for homesteaded properties have gone up 2.9% over the past year. That means the county would receive an additional $17.2 million in extra revenue if the current rate was kept the same, he said in opposition to the proposed tax increase.
But Leslie Grubl, a member of the League of Women Voters of Seminole County, said her organization supports the tax increase as a relatively small amount to pay for county services.
“While nobody likes to pay taxes, everybody likes the wonderful services we receive from Seminole County that makes this a great place to live, work and play,” she said. “Our parks and libraries are busy. Our roads are well maintained. Our sheriff’s department and fire department respond when needed and in a timely manner. None of this happens without adequate funding.”
Seminole resident John Horvath said keeping sheriff deputies is worth the cost of the tax increase.
“We don’t want to lose our deputies,” he said. “Nothing costs less today than it did five years ago.”
Commissioner Bob Dallari cast the only vote against the proposed property tax hike. He said the county should work with Seminole’s seven cities to consolidate some services. But he was not specific on which services.
Commissioners — all Republicans — admitted they waited too many years to raise taxes to adequately fund the increasing costs for public services.
The last time Seminole raised its countywide general property tax rate was in 2009, to $4.90 per $1,000 of a property’s taxable value. But commissioners then lowered it to about $4.88 in 2010, where it has remained ever since.
“I will assure you that nobody up here wants to see an increase [in taxes] whatsoever,” Commission Chair Jay Zembower said to residents. “But our staff has been telling us for years that this day is coming. So here we are making these tough decisions.”
Commissioner Lee Constantine said voting for a tax increase “is making me sick to my stomach.” But he had no other choice.
“I don’t like it, and I don’t want to do it and if there’s any chance I don’t have to do it I will find every way I can,” he said. “But we have been living off of reserves. … And I will promise you that I am looking at every single possible savings.”
Commissioners on Wednesday also unanimously gave preliminary approval to next fiscal year’s overall budget of just over $1.21 billion, a 10.5% increase from the current budget of nearly $1.1 billion.
Public safety – including the sheriff’s office, jail, and fire department – makes up 45% of the overall budget. Water and sewer costs are 13%, and transportation – including mass transit, roads, traffic and drainage – is 10%.
The final votes on the property tax rate and the county’s overall budget are scheduled at public meetings on Sept. 23.
