Double Taxation and the South Walton ATM

[Bob Hudson]

Current WCTA Project

On October 28 WCTA President Bonnie McQuiston spoke before the Board of County Commissioners concerning the current project undertaken by the WCTA Board - "Double Taxation for Fire and Rescue Service in Walton County".

This project has been the focus of our board and director for the past three months. McQuiston asked the commission for three actions on behalf of taxpayers in Walton County.

Currently if you are a property owner in South Walton County your tax bill includes a millage rate set by the South Walton Fire District (SWFD) - the sole provider of Fire and Rescue service in South Walton. The SWFD was created by a referrendum of the voters residing in South Walton to provide Fire service to the area. Currently the millage rate is capped at 1.0 mill and the 2011 millage rate set by the SWFD Commissioners is .89990 mills. This translates to a tax for fire service of 89.99 cents per $1000.00 of taxable value. Example: A home in the SWFD area with a taxable value of $400,000 would incurr a tax liability to SWFD of (400 x 89.99 cents) $ 359.96 for 2011.

The Board of County Commissioners created the North Walton Fire District in the 2005-2006 budget year. The funding for the district was to be funded by a Municipal Service Benefit Unit (MSBU) Assessment. The initial Assessment was set at $25.00 per home in the areas outside of incorporated areas and a per square foot charge for commercial buildings. Those assessments are set each year by the BCC after a public hearing. The budget for North Walton Fire and Rescue has grown to $7,732,100 for the 2011-2012 fiscal year. Residents of the area provide $1,758,856 of funding from property taxes, fees for service and the MSBU leaving residents of South Walton to pay for service in the North Walton Fire and Rescue area $5,973,244.

The same property taxed by SWFD a total of $359.96 is also paying an additional $226.00 for Fire protection for the North Walton Fire District they do not receive and cannot use. :mad:

The WCTA Board is committed to working aggressively with the Board of County Commissioners to eliminate this "Double Taxation"

We will keep you informed of our progress as our President will address the Board of County Commissioners on this subject on November 8th.

 

[idlewind]

I don't see how anyone can think this is fair and should not be remedied. Thanks WCTA for doing the footwork in uncovering this injustice.

 

[Andy A]

It is no secret that one of the best and most productive organizations in Walton County is the Walton County Taxpayer's Association. Without them, our taxes would be even more unfairly assessed, I feel sure.
Here's a suggestion. If you are not a member of the Taxpayer's Association, join up. The cost is minimal and like all volunteer organizations, I'm sure they can use the financial help.

 

[Jdarg]

Wow. Way to go WCTA. I can't help thinking about all the things SoWal can do with almost $6mil!!

 

[countycitizen]

I am trying to follow this and understand it. I would like some explanation if you, Mr. Hudson, can give me some.

The .89999 mills was voted on by the residents of South Walton correct?

The monies received from the .89999 mills stays within South Walton and that money helps to fund SWFD correct? Does any of that money received from the mills go to the General Fund of the County or support Walton County Fire Rescue?

The property taxes that are generated in South Walton, just like North Walton, go to the County therefore the County can distribute the funds collected as they see fit. Whether the money goes to road & bridges, fire services etc.

So I see no double taxation from the listed above.

Now the $25 MSBU assessment fee is where I can see a possible double taxation. When this was implemented were the homes South of the bay charged the $25 fee? Or is this $25 fee just for the residents North of the bay?

If the $25 fee is just paid for by the residents North of the bay then there is no double taxation.

Also keep in mind that over $650,000 is taken out of Walton County Fire Rescue's budget to provide the ambulance coverage to South Walton. While WCFR does not staff these trucks they do provide the money for them to be filled. The mind boggling thing is that when SWFD has to down an apparatus because of manning issues, the ambulance gets taken out of service instead of a fire apparatus. Also keep in mind that WCFR along with Freeport Fire provides mutual aid to SWFD on a regular basis when they are depleted in coverage if all are on a call.

I am just trying to figure it all out and not trying to push any buttons. If someone could explain this to me so I can understand it better would be greatly appreciated.

 

[Bob Hudson]

Post under a real name and I will gladly respond.

 

[countycitizen]

Do not know how to change the name from countycitizen to my real name. My name is Jedd P.

 

[Henry Apfelbach]

Mr, Jedd,

I can give you some answers. As far as the .8999 mills that is voted on by the elected Fire Board. Every year they have the ability to change it up too 1.0mills based on a previous referendum vote held many years ago.

The money you are saying Walton County pays to SWFD is actually money to keep the citizens of South Walton from being double taxed on ambulance service. That money and contract call for SWFD to provide 3 ambulances 24-7. In an effort to give the citizens more service SWFD added an additional ambulance a few years ago. This enhanced the level of service in the south end but it was totally funded by SWFD. As you know tax revenue is down and SWFD had to make some hard decisions on what to do, so one way to save money was to "Brown out" this extra amublance when there were not enough people to staff it. WCTA is well aware of this as they sat through all the public meetings prior to this happening.

 

[Bob Hudson]

Jedd

Sorry for taking a period of time to respond. First of all let me say that Fire and Rescue Services are a primary responsibility of local government and I believe that the citizens have the right to determine the level of service that they choose - and that they should be willing to pay for that level of service.

Some history:

South Walton Fire District was initially approved by referendum in 1983 as a "volunteer fire department". It was initially funded through a $25.00 per residence (County Ordinance 1983-06). In 2000 an act of the legislature created SWFD as an independent Fire District with taxing authority, limiting the millage rate to 1 mil and providing for a referendum (Chapter 2000-491). Once the referendum was held and passed the BCC excluded the area South of the Bay from collecting the $25 per home.

Walton County and the SWFD have entered into agreements that are described as mutually beneficial for EMS service in South Walton to be provided by SWFD (2011 Agreement). This agreement is for funding of 650,000 (round number) which pays for a portion of the actual cost of providing EMS service in South Walton. Some people would classify this as a purchase of services agreement - with the BCC purchasing the service from SWFD rather than providing it themselves. This agreement (Agreement) and the $650,000 payment has nothing to do with eliminating "double taxation". It should be noted that SWFD receives no additional funding from the BCC to pay for "Fire Protection".

According to the 2010 census their are approximately 18,000 permanent residents in the area many describe as "south Walton". According to Patrick Pilcher-Property Appraiser and Rhonda Skipper - Tax Collector there are approximately 42,000 taxable parcels in So Walton that generate approximately 38 million dollars of ad valoreum tax revenues to the Walton County Commission.

You can read the WCTA Study by clicking the link below.

Study

North Walton Fire & Rescue

North Walton Fire & Rescue was created in 2005 by the BCC in an attempt to consolidate all Fire and Rescue under one central controlling authority. Freeeport, DeFuniak Springs and the Volunteer Fire Districts in Liberty and Argyle chose to maintain their independent status. The plan was a six year plan the implemented a controlled growth that phased in the hiring of professionals, purchasing equipment and building fire stations. (Six Year Plan).

You can note that the plan that was approved had a component to provide for funding of the combined service. The plan called for an initial assessment per household of $200.00. When the MSBU was authorized the commissioners felt that the assessment should gradually increase as the authority acquired men, equipment and facilities. The fee was set at $25.00 and has never increased even though the MSBU authorizes assessments to fund the entire budget.

Your statement that the BCC can spend the ad valoreum taxes collected as they choose (guess they could just allocate it all for "Chat Holley land purchases") is correct with one catch. The MSBU is the funding method described not ad valoreum taxes.

It is the WCTA's belief that the continued utilization of ad valoreum taxes to fund a authority that has a defined funding source is double taxation.

Remember that the total ad valoreum taxes collected is 38.5 million and that "south Walton" pays 33 million leaving the total contribution for "north Walton" at 5.5 million. The total ad valoreum taxes collected in north Walton are 2 million dollars short of paying for the Fire & Rescue in the north. That would leave nothing to pay for any portion of the Sheriff's Department, Libraries, Legal, Courts, Road or Bridges.

It is simple:

Follow the approved MSBU funding mandate, quit using BCC ad valoreum taxes from either north or south for that purpose. Your ad valoreum tax bill will be reduced for all of Walton County - people living in the South will pay for their Fire and Rescue through the SWFD and those living in the north will pay for Fire and rescues through the MSBU or the BCC will have 6 million dollars for much needed services.

Just as side note:

If you live south of the Bay you pay for mosquito control through South Walton Mosquito. Only residents in the South see that tax on their tax bill. Created by referendum.

If you live in north Walton you see a separate line item for North Walton Mosquito and do not see the millage for South Walton. (created by ordinance)

Why the difference ?

Six Million dollars !

 

[Andy A]

Bob, as usual, a very succinct and thorough explaination of how we fund our services here in Walton County. Thank you very much for such a complete run down of the existing situation. If people, including me, would take more time to question and analyze our tax problems and the solutions to them as the WCTA does, and then act on them, we wouldn't have near the governmental problems we have. Well done, WCTA!