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HomeMy WebLinkAbout2007 03 07 Handout Given by Kevin Smith Regarding Property Tax System Date: March 7, 2007 The attached was provided by Mr. Kevin Smith for the March 7, 2007 City Commission Special Meeting. CITY OF WINTER SPRINGS, FLORIDA JOHN F. BUSH OFFICE OF THE MAYOR 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 City Telephone: 407-327-5956 Facsimile: 407-327-4753 Personal Mobile: 407-256-6987 Email: jfbush@winterspringsfl.org City Website: www.winterspringsfl.org We agree that our property tax system is unfair and is broken. We also agree that we share a vital interest in getting this latest tax reform effort right this time. We DO NOT agree, however, on the way in which the Governor and Legislature are approaching the Issue. Recent state-wide surveys have shown that citizens do not want their local services reduced, that they prefer to have the flexibility at the local level to decide the level of services they desire, and that the taxes that they pay for these services should be fairly apportioned. These basic and fundamental values of governance must provide the framework for the current discussion on property tax reform. Unfortunately the Governor and some Legislators have chosen a different course of action which does not include all parties affected by the proposed changes. Blaming city and county elected officials for the flaws in our property tax system is just plain wrong. The current political environment here in Tallahassee has not as yet considered the input and involvement of city and county government in a deliberative and cooperative approach in resolving the issue. We believe this is an oversight that should be taken into consideration and corrected. This current process incites but fails to inform the people of the real causes of the property tax crisis which includes the following: 1. The fundamental unfairness in our property tax system is caused by the flawed concepts of the Save Our Homes constitutional amendment. Even the author of the Save Our Homes constitutional amendment himself acknowledges that the Save Our Homes initiative has had the unintended consequence of trapping residents in their homes and creating a property tax system that is not fair. 2. The Governor and Legislature's decision to reduce state funding for schools, the state judicial system, and social services has caused local governments to have to raise funds locally to offset these losses of state funds. 3. The continuous stream of unfunded state mandates passed by the Legislature continues to require local governments to raise revenues at the local level to pay for these unfunded state mandates. 4. Another factor is the speculation in the real estate marketplace which has driven home values artificially high. 5. The desire of our residents for their local city and county governments to provide the levels of services that they believe are important to their desired quality of life. We appear to be moving forward to another knee-jerk, short-term fix that looks good in the headlines but proves yet again to disappoint the expectations of our citizens for real and fair solutions from government on property tax reform. Reform proposals must be thoroughly analyzed. Proposals being considered would reduce as much as 40% of the revenue supporting essential services in our city. This would result in dramatic reductions in these essential services andlor dramatic increases in user charges that would punish seniors and the less fortunate in our city. Sales taxes require much higher reserves than property taxes to bridge economic down turns. The predicted impending recession could seriously reduce projected sales tax revenues in the immediate future. Additionally, many cities like the City of Winter Springs have bond issues in which property taxes are lawfully pledged for the repayment of debt. How will this issue be reconciled? V oter approved referendums pledging property taxes are an important instrument by which local citizens are able to decide the level of infrastructure they desire. Do we really want to give this voter-approved source of funding up? We are recommending the Governor and Legislature create a Property Tax Reform Study Commission made up of a broad spectrum of state, city, and county elected officials, career public service professionals, representatives of the private sector, and the best technical minds available. The Legislature should charge them with the responsibility of providing recommendations for reforming our property tax system in time for the 2008 session of the Legislature. This alternative approach will prevent a repeat of prior failed efforts to reform our property tax system. We believe that this deliberative, constructive and cooperative process of property tax reform will get it right this time for all the people of Florida.