Orange County Supervisors voted Tuesday to advertise a 10-cent tax change.
Recently, the county conducted an assessment which saw a 31.23% increase in the valuation of real estate, from approximately $4.8 billion to $6.3 billion. The new total doesn’t include any additional assessments due to new construction or improvements to properties. By law, the county must equalize its real estate tax rate to within 1% of the previous revenue. This means the county has advertised an equalized rate of $0.47, below the current rate of $0.61.
However, with budget work ongoing, supervisors have voted to advertise an increase on the equalized rate, increasing it to $0.51 per $100 of assessed value. An increase from the fire and EMS levy equalized rate of $0.11 was also advertised, increasing it to $0.17. The current rate is $.14.
It’s unlikely the adopted changes will be the entire increase advertised as finance director Glenda Bradley said the proposed budget is based on $0.48 per $100 for real estate and $0.16 for the fire/EMS levy. However, because supervisors can always opt for a rate less than what is advertised, but cannot choose one higher, it makes sense to advertise high to allow for flexibility. No changes have been advertised for any of the county’s other tax rates.
The proposed $158.5 million budget, of which $38.3 million is in the general fund, is 6.6% or $9.8 million more than the current year’s budget. It includes six new full-time and four new part-time employees, less than the 34 full-time and 5 part-time requested. For schools, $28.1 million is included which is comprised of operating, capital and debt service. It’s far less than the $35.8 million requested, but still $926,000 more than the current year.
For county employees, the budget includes a 3% mid-point market wage adjustment and a 1.5% one-time bonus to constitutional offices and their staffs, offset somewhat by funds from the compensation board. Additional wage adjustments are included for public safety along with the continuation of public safety career step plans, both to improve retention. A 15% anticipated health insurance increase is funded.
Some selected rates and fees are also adjusted to cover program costs, including in parks and recreation, at the landfill and in the commissioner of revenue, treasurer and EMS budgets. The budget is balanced using an approximately $3.4 million appropriation in general fund balance. Bradley said the budget focuses the most on school and public safety funding. Approximately $9.1 million is included for capital improvement projects with nearly $5 million covered through new debt service including seven buses, one ambulance, eight cardiac monitors and landfill operations equipment to bring operations in-house. Just over $43 million in projects was requested. The funded capital improvement projects include $250,000 for the beginning of a potential water impoundment project.
Cuts are still possible. District Two Supervisor Ed Van Hoven said he’d like to get to the equalized rate of $0.47. He suggested a 12-month hiring freeze, opting to not hire any new positions. He also suggested delaying two roof projects. He said these things could get the penny back. One penny on the real estate tax equals approximately $666,000.
District Five Supervisor Bryan Nichol said he’d also like to see the rate be $0.47. He, too, suggested delaying the two roofing projects.
“This is a unique year where we could not have a general fund tax increase,” he said. “Given the stock of other things, I think it’s important we stick and not raise general fund dollars.”
District 1 Supervisor and chairman Mark Johnson said the county should account for inflation from the additional homes and businesses that are built each year. He said virtually every year Orange County has new revenue from the businesses that come in and the homes that are built.
District 4 Supervisor Crystal Hale questioned why the county wouldn’t take advantage of its reassessment and raise taxes. She said equalizing the rate is a “philosophy” although Johnson said it was “the entire reason for reassessing.”
“Our schools are in desperate need for better teacher salaries,” Hale said. “I think we could do a little bit better than equalize and get them what they need. Our fire and EMS folks [have needs]. We have needs in this county and they cost.”
Van Hoven countered that meeting a “wants list” would be raising everyone’s taxes 35%.
“The money is not here,” he said.
Nichols said the budget isn’t one that is full of cuts.
“We have to make tough decisions and they’re not easy ones this year,” he said. “But we’re not cutting. We didn’t go to people and say cut 5% out of the budget. We have funds set aside if things get really bad.”
The supervisors have approximately five weeks to continue budget discussions. A public hearing on the budget is set for April 22 and for the tax rate May 6 with budget adoption May 13.
