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Home My WebLink About2007 05 17 Fishkind & Associates AD HOC WINTER SPRINGS CITIZEN PROPERTY TAX REFORM MITIGATION STUDY COMMITTEE THURSDAY, MAY 17, 2007 THE ATTACHED POWERPOINT PRESENTATION WAS PREPARED BY FISHKIND & ASSOCIATES, INC., 12051 CORPORATE BOULEVARD, ORLANDO, FL 32817 407-382-3256 OR FISHKIND.COM Ad Valorem Revenues & County Spending: Where Did the Money Go? + Winter Springs Cost Analysis Prepared by Fishkind & Associates, Inc 12051 Corporate Boulevard Orlando, Florida 32817 407-382-3256 or Flshkind.Com I Topics of Discussion . Fishkind & Associates was contracted by The Florida Association of Counties to analyze the growth in ad Valorem revenues and County government costs, . Analyze growth in ad Valorem revenues . County Cost Surveys . Florida Local Government Cost Index (ULGCI") . City of Winter Springs Analysis & Comparisons FebruJry2J,2007 Fi~hkind&A5sOCiJtC$, lnc: County Survey Methodology ] Surveys were sent to every County in the State. 1 Capital and operating expense information was requested regarding Law Enforcement, Constitutional Officers, Jails, Roads, Court Facilities, Insurance, Fuel, etc. .1 51 out of 67 Counties responded - 93% of State.s population covered I The following slides discuss the absolute dollar growth and percentage growth in specific categories from the Counties that responded FCbruJry23,2007 Fdlk.m<:l&A~'$O(:jafes.lnc: MN~h" hoo ~---_. .-------11-7'.... no. __u. _. ____.__ ~. ----- ---- . Pl'Optffy HullhlnSIUIU FUII'Uillly Insurant' llO'tLrr1'" ZOO% ---- _ _ ..Jll~ I'fro-- -- -- -;00'Il-- 'DO'/; -- ---- - Ill'Io -- ----- " Proputy HlllIhlnluflllcl FUII&Uilily Insuranu Cost Driven Categories ] Increases in spending for these categories are primarily driven by cost factors outside of the Counties' control. :1 For example, consider the following: - Dade County experienced an increase of $21.0 million or 113% growth in fuel costs - Palm Beach County incurred an increase of $54.0 million or 216% property insurance - Costs for health insurance jumped $26.0 million or 177% in Broward County FcbrUMy2J,2007 FlStlk1nd& A,SOtialcs, Ine Growth in the Budgets of Constitutional Officers 1999-2005 Dollar Grow'/! ~million~ % Grow'/! ::tIT~~~ IlOI .... mm 112 112 ~ She/iff >!r- 150%~m............mtlO%....... 1:-!1154% ~- -.. ~Hi3% O'l 'At, . Sherrtf Ta,Colleetor ~perviSOf Properly of8ections Appraiser Tu Supervisor ~operty Collector of Bections Appraiser FcbrUJry23 2007 FlshkJn~& Assotlales In!: 9 Constitutional Officers I The Sheriff experience by far the largest absolute dollar growth for Constitutional Officers. 3 Large, medium, and small counties were affected. I Some examples are instructive: - Sheriff's costs jumped $70.0 million or 117% in Lee County - Sheriff's costs jumped $317.0 million or 102% growth In Broward County - Sheriff's costs jumped $10.0 million or 330% growth in Sumter County. Fctlt".lry23,2007 F"hkind & A~~ocjJlell, Inc " Growth in Capital Facilities Expenses 1999-2005 DolI.r Growth Ilmillions) %Grow~ :tD--~ 100 .n o - Park Lilxlry Capitll Capilli 31.1 S71 Il ~Ol21~ 'ilrin2~2~ ::1 n .~;.~ ~. 0% ParkCajlftal Libr2fY JalCap~al CourtsCailal Caphl = Jail Capital Courts Caital Fcb'UJIY 23 2007 Fl~hklml & A~sotlJtcs II'lC 11 Growth in Expenditures for Parks Capital Facilities Expenses I Strong demand for park facilities and environmental lands. .J For example: - Brevard County expenditures jumped $31.0 million or 1,044% - Collier County expenditures jumped $40.0 million or 1,478% - Lee County expenditures jumped $63.0 million or 524% F.;brU.lJy2J,2007 F,shloJn<:l & A:;~oclales. Ine " Road & Bridge Construction & Maintenance ]I Road costs for construction and maintenance have skyrocketed since 2000. .9 For example consider the following: - $41.0 million or 321% growth in Road construction expenses for Collier County. - $90.0 million or 218% growth in Road construction expenses for Duval County. - $72.0 million or 304% growth in Road construction expenses in Lee County. - $23.0 million or 52% growth in Road maintenance expenses for Hillsborough County. February 23. 2007 Fishkind& Assoeiatcs, rne ., eRA Payments ]I TIF payments grew by $113.7 million dollars for a 326% increase. ]I TIF payments simply flow from the County's general fund to the CRA fund. - Incremental ad Valorem revenues are targeted for a specific area within the County D The increasing popularity of CRA's has contributed to this increase. ]I $34.0 million or 349% growth in CRA payments for Dade County. ; $13.0 million or 375% growth in CRA payments for Palm Beach County. Fctruary2J.2001 fl~hkind&Assocjates.,lne " Operational Cost Index Methodology . A Sample of Flonda's Counties ranging from small to large was taken In order to develop a Local Government Cost Index ("LGCI") similar to the CPt used by the Federal Government . Categories Used: - Sa lanes and Wages - Health Care and other Fringe Benefits - FIre and EMS - Shenff Department Allocation - Other Constitutional Officer Payments - Other Expenses Not Elsewhere Classified · A per employee expense for each category was determined for each sample County. . Per Employee totals were then weighted with the first year benchmarked at an index of 100. F~bruJ'y 23. 2007 F.~h~lO~ & AS~otIJICl:i. Inc " Operational Cost Index- Discussion i LGCI for Counties shows a 58% increase in overall expenses 2000-to-2006 i CPI grew by 17% from 2000-to-2006 I The LGCI grew 35% more than increases attributed to the CPI 1 CPI measures mostly household purchases i Local Governments are purchasing items such as property Insurance, health insurance, fuel, law enforcement services, etc. that tend to increase in costs at a faster rate than cpr FcbrUJry2J,2007 Fi~hkjnd & A55OCI:rtc~, fnc " Construction Materials Cost Increases, 2005-2006 2005 2006 Cost Annual % Cosl Annual % Increase IntfCLI~H Eiirthwork Cubic Y(lrd $737 68" $1540 109% Asphall(TonnJge Ton SiT 66 26% $6875 14~;', Hems) Concrete (Structural) Cubic Yard $76171 35% $1,43445 68% Steel (Strucfural) Pound $157 6% $200 27% St(!el (Reinforcing) Pound S091 21% $160 76% FcblU.lfY 23. 200T F.,hkind So A~~oci.rte~.lnc 22 City Population & Employees J Population of 30,860 in 2000 grew to 33,971 people in 2006. 1 City employees grew from 235 in 2000 to 298 employees in 2006. - Fire Fighters, Police Officers account for 57% of increase. -Information Technology demands. Fd""J'v23,2007 Fhhkind & .A~~o~iJ\c:>, In' 25 Latest Senate Proposal j Roll Back and Cap Base Year - 2005-2006 a Inflation factors new construction (population) and per capita income (per capita income runs about 4%-5% per year) 1 No inflation factors allowed in FY 2008-2009. 1 Cap can be overridden with a 2/3 vote of County Commission, beginning in the third year (2009-2010). 1 There is a reset provision after the third year (2009-2010) if the cap is penetrated. F~bIUJry 23, 2007 3J Fl5hlun(j& Assocbtcs,Inc Senate Proposal Cont... I $25,000 tangible personal property tax exemption I Double homestead exemption for first-time homebuyers I Affordable housing to be taxed based on rent collected rather than market value I Portability of Save Our Homes - Keep SOH and taxable value of the new home will grow by 10% per year until the normal SOH benefit IS reached) fd.""Jry 2J. 2007 F,.,t'"Hld& A,.oe'Jkc, !nc