BY MARK J. CRAWFORD
Telegraph Editor
STARKE — Following a workshop full of information on Bradford County Fire Rescue’s next budget request, commissioners took a step back April 12 to consider possible revenue sources.
According to attorney Will Sexton, both commissioners and department heads have questions about available revenue as well as possible new funding sources. How far, for example, is the county away from balancing its budget given the nearly $600,000 proposed cut to the fire rescue budget, Commissioner Danny Riddick inquired.
In addition to taxes on new development, the county is also expecting property values to rise when Appraiser Kenny Clark announces taxable values this summer.
Without an audit of last year’s financials, commissioners don’t know if attempts to control spending have had a positive effect on the general fund balance. It’s possible the trend of depleting the fund balance has continued.
Chief Deputy Clerk Rachel Rhoden pointed out the budget has not been audited since the board added $1.3 million for the paid fire department as well as an employee pay raise.
Sexton said accountants might complete a first draft of the 2020-21 audit by the end of the month.
In the meantime, commissioners don’t want to pull the trigger on any new funding sources without knowing its crucial to impose new taxes or fees to balance the budget.
Several sources are up for discussion.
Impact fees
Commissioners all seem to agree that impact fees are the least popular with the public, and therefore they are the least popular with the commission. Commissioner Carolyn Spooner said while they must consider all potential revenue sources, impact fees were the “last resort.”
Commission Chairman Chris Dougherty did point to surrounding counties who collect special assessment fees as a dedicated funding source for public safety services. Doing so allows them to lower the property tax rate, something Bradford Commissioners are concerned with after maximizing property tax collection this year to 10 mills.
One-cent sales surtax
One revenue source that would have a direct impact on the property tax rate is the Emergency Fire Rescue Services and Facilities Sales Surtax. Commissioners — with voter approval — could add one cent to the local sales tax to fund emergency services. Levying the tax also requires property taxes to be lowered by an equivalent amount. So, the sales tax is not new revenue, but it is a dedicated funding source for those services and one that spreads the cost among everyone who spends money in Bradford County.
Sexton has already discussed some drawbacks with the board, pointing out that only a single eligible county has levied the tax and now regrets it. He explained more about the statutory requirements, including what happens if the county underestimates the amount of revenue the additional sales tax brings in. If the county collects more than anticipated, it must send rebate checks to taxpayers.
Sales tax revenue fluctuates outside of the county’s control. A number of economic factors can affect sales.
Sexton said if the county deliberately overestimates the projected revenue in order to avoid the rebate debacle, then it could wind up losing revenue because of the equivalent cut required in property taxes.
There is a revenue sharing requirement that could benefit the city of Starke, which has its own fire department. The percentage the city would receive is determined by a five-year average of how much each government spent on emergency services. In the short term, Starke would benefit since the county has not had a paid, full-time fire department for a full five-year period. Once it has, the percentages outlined in the interlocal agreement would shift.
Starke could, however, opt out all together as it would be subject to the same statutory requirements for collecting the tax, including rolling back property taxes.
The referendum requirement makes it difficult to base next year’s budget on a revenue source that may not win at the ballot box.
Franchise fees
Electrical franchise fees aided the county’s efforts to lower the property tax rate in the past, which is why today’s commissioners are scratching their heads and wondering how the county let the fees go.
Discussion about negotiating new fees with the area utilities proved contentious with the public, although commissioners didn’t feel comments at a meeting to discuss franchise fees were necessarily representative of all their constituents.
Of the two utilities, only one — Florida Power and Light — expressed an immediate willingness to work with the county. Clay Electric indicated its decision would be based on feedback from its members, although Dougherty pointed out the electric cooperative has allowed franchise fees to be collected in other local counties and municipalities.
Commissioner Kenny Thompson previously suggested placing a franchise fee referendum on the ballot. The county is looking at the time frame for doing so as well as the cost involved.
Impact fees
Another past revenue source the county has relinquished are impact fees, charged to new residential and commercial development to help government pay the cost of growth. When the housing market crashed in 2008, the commission pass a moratorium to encourage people to continue building in Bradford.
Commissioners seem to agree it makes sense to ask developers to pay for the impact of growth. Dougherty has warned about being behind the curve when growth begins to take place. At the same time, the past implementation of impact fees has come into question.
Commissioners discussed the need to focus on two particular categories: public safety and transportation. Spreading impact fees to other areas like libraries and recreation dilutes the amount of revenue available for all categories. Public safety and transportation are the county’s costliest services. Commissioners are prioritizing those services.
Sexton also reminded commissioners about the restricted use of impact fees, which must be tied to the developments responsible for the impact on county services.
Fees also need to be set high enough to pay for growth-related projects, like increasing road capacity.
Commissioners have time to consider what they’ve heard so far, and potentially get an advanced look at the 2020-21 audit before their next budget workshop, which is scheduled for May 3 at 6 p.m.
