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Home My WebLink About3(B) Tax Equalization - Hollis Holden TAX EQUALIZATION_ TASK [f FORCE IS SUES Hollis Holden City Manager =�F City of Winter Garden . . Orangei ..f _ f�t .;; :; ::-. County Linda W. Chapin Orange County Chairman 201 South Rosalind Avenue . Reply To: Post Office Box 1393 Orlando, Florida 32802-1393 Telephone (407) 836-7370 • August 16, 1996 Mr. Hollis Holden City Manager City of Winter Garden 251 W. Plant Street . Dear Mr. Holden: Congratulations on your appointment by the Board of County Commissioners to the Tax Equalization Task Force. I am delighted that you have agreed to serve on this important committee, and I'm also pleased to tell you that Keith Denton has agreed to serve as your chairman. Keith has a background in public administration as well as solid experience in finance and transportation. His keen intelligence will be a real asset in the organization and deliberations of the task force. Equally important,his reputation for fairness and integrity will ensure a process in which all parties can feel confidence. The Task Equalization Task Force has been charged with the responsibility of studying and making recommendations to the Board of County Commissioners regarding the major service delivery systems and related revenue sources for those areas where there is likely to be overlap or the potential for dual taxation of Orange County residents. The areas to be studied include transportation, transit, law enforcement, and fire protection. Revenue sources would include such items as state revenue sharing, local option sales tax, ad valorem taxes, public service tax, local option gas tax, impact fees,fines and forfeitures, and permits. A copy of the Tax Equalization Task Force Charter is enclosed for your review, along with a packet of historical information on tax equalization and our Advisory Board Member Handbook. As noted in the Charter for the task force, this effort will need to be completed by early February 1997 if the recommendations are to be considered in the FY 1997-98 budgets for Orange County and/or the municipalities. The Board of County Commissioners and staff appreciate your willingness to take on this challenging assignment and look forward to your active participation in the months ahead. The first meeting of the task force is scheduled for Monday,September 16, 1996 at 5:00 p.m. This meeting Commissioners:Bob Freeman,Dist.1 • Tom Staley,Dist.2 • Mary I.Johnson,Dist.3 • Clarence M.I loenstine,Dist.4 • Bill Donegan,Dist.5 • Mable Butler,Dist.6 a...-4 Letter to Mr. Holden August 16, 1996 Tax Equalization Task Force will be held at the Orange County Administration Building,First Floor Meeting Room(adjacent to the Commission Chambers), at 201 S. Rosalind Avenue, Orlando, Florida. In order for us to schedule future meetings at the most convenient possible time for you,please complete the attached survey and return it via fax (407-836-2880) to Virginia Dericho in the Office of Management & Budget. If you have any questions about the task force or your duties, please contact Sharon Donoghue in the Office of Management and Budget at 836-7390. Sincerely, Linda W. Chapin Orange County Chairman LWC/va Attachments c: Board of County Commissioners (w/o attachments) Jean C. Bennett, County Administrator(w/attachments) Keith Denton, Chair, Tax Equalization Task Force (w/attachments) Sharon Donoghue, Manager, Office of Management and Budget(w/attachments) Tom Wilkes, County Attorney(w/o attachments) Jeff Newton, Assistant County Attorney (w/attachments) 1996 TAX EQUALIZATION TASK FORCE MEMBERS fO E TERRA NoVA Mr. Keith Denton,President Honorable Cary I3rcwcr,Mayor KSD Consulting, Inc. City of Winter Park The Jefferson Building 401 Park Avenue, South 118 East Jefferson Street Winter Park, FL 32789 Orlando,FL 32801 (407) 623-3235 (407) 623-3436 (407) 649-8483 (407) 649-1781 Mr. Tony A. Bland, President Honorable Richard Crotty Bland&Associates Orange County Property Appraiser 7380 Sand Lake Road, Suite 533 200 S. Orange Avenue, Suite 1700 Orlando, FL 32819 Orlando,FL 32801 (407) 352-5288 (407) 876-2536 (407) 836-5055 (407) 836-5029 Honorable Martha O. Haynie Mr. Hollis Holden Orange County Comptroller City Manager 201 S. Rosalind Avenue City of Winter Garden Orlando, FL 32801 251 W. Plant Street (407) 836-5690 (407) 836-5599 Winter Garden, FL 34787 (407) 656-4111 ext. 2246. (407) 656-4952 Mr. Joe Kefauver Mr. Tom Rooney, Jr. Government Relations Representative, Darden Business Manager Restaurants Turner Construction Company 208 Whittier Circle 800 N. Magnolia Avenue, Suite 1301 Orlando, FL 32806 Orlando, FL 32803 (407) 245-4643 (407) 245-4462 (407) 648-1948. (407) 648-0624 Mr. Conrad Santiago Honorable Tom Staley Senior Financial Advisor, CFP Orange County Commissioner, District 2 American Express Financial Advisors 201 S. Rosalind Avenue 800 N. Magnolia Avenue, Suite 1700 Orlando,FL 32802 Orlando. FL 32803 (407) 836-7350 (407) 826-5879 (407) 839-0433 (407) 839-1027 Town of Eatonville Ms. Karen L. Wrenn, CPA Attn: Larry Williams P.O. Box 1993 P.O. Box 2163 Orlando,FL 32802 Eatonville,FL 3275.1 (407)422-6633. (407) 422-0809 (407) 623-1313 (407) 623-1319 Ms. Allison M. Yurko,Esq. Ms. Dye Ann Graham, Esq. Gray; Harris and Robinson, P.A., Tupperware World,North America P.O. Box 3068 P.O. Box 2353 Orlando, FL 32801-3068 Orlando, FL 32802 (407) 843-8880 (407) 244-5690 (407) 826-4575 (407) 847-1822 v�mr- mi______�J...._ Z.....1:.. ...7:..♦G..r..�..,./.�.n{n.m linr Tax Equalization Task Force Scope of Effort ► After examining the sources of revenue available to local governments and the services provided, are there inequities between County and/or municipal governments? Are there areas where overlap or dual taxation (or the potential for) exists? • ► If inequities/overlap/dual taxation are found to exist, what should be done to resolve the problems? ► What impact(s) does annexation of property by municipalities have on the provision of services and the revenue received? What can be done to ensure the most effective and efficient services are provided for residents in anneXed areas (or in "enclaves")? Tax Equalization Work Group Preliminary Analysis On November 16, 1996, the Tax Equalization Task Force (TETF) provided direction for the Tax Equalization Work Group (TEWG) to identify and provide information on services that could be provided at the most cost efficient way to the citizens and also to provide information on items that tend to"stand out"as inequities. Based on the direction of the TETF, the TEWG addressed services provided by the Sheriff's Office to incorporated vs. unincorporated areas as a service that tends to "stand out"as related to cost efficiencies,funding, and inequities. Background Information on how Law Enforcement is currently funded: Sheriff • 85% from MSTU (Municipal Service Taxing Unit) at 2.0734 mills and approximately$24 million in Utility Taxes. • 15%from Countywide Municipalities The following nine municipalities have Police Departments and are funded by ad valorem taxes. • Apopka, Eatonville, Edgewood, Maitland, Ocoee, Orlando, Windermere, Winter Garden, and Winter Park The remaining three municipalities without Police Departments have the following arrangements: • Belle Isle -Part-time off-duty deputies . • Lake Buena Vista and Bay Lake- Contracts with the Sherds Office. Summary of Funding Alternatives Alternative#1 Shift the Sheriffs unincorporated millage (MSTU)to the countywide millage and adjust the rate to completely fund law enforcement operations. The sheriff does not budget to provide a"basic level of service"within Cities with Police Departments. Therefore,to avoid the burden of dual taxation, Cities that already have Police Departments will be reimbursed for cost associated with providing their own"basic level of service." Agreements between the County and the Cities with Police Departments will include a standardized formula for reimbursements. Alternative#2 Instead of annual contracts for Sheriffs services, assess an MSTU (Municipal Service Taxing Unit) millage rate in "incorporated" areas that do not have Police Departments. Cities like Belle Isle, Lake Buena Vista, and Bay Lake would be charged the "Sheriff' unincorporated millage rate. This can be done with permission of municipalities. - Alternative#3 Contract with cities without Police Departments for an amount based on a standard formula. The standard formula will be exactly the same as the unincorporated area -- (Current taxable value x the Sheriffs MSTU unincorporated millage rate). Alternative#4 Maintain the current funding structure but determine the appropriate funding split between unincorporated and incorporated areas.