How we arrived at our grades

Walton County School Board

Such high promise and a terrible disappointment !

School Boards throughout the state were specifically exempted from the rollbacks in tax collections. The WCTA attended the first meeting where the Board discussed a tentative budget for the upcoming year.  We returned a week later expecting to hear the presentation from the Finance Officer and recommendation from the School Superintendent on the requested 1/2 mill reduction first proposed by the Chairman Mark Davis.  We heard the presentation and then saw the Board vote for only a .01 mill reduction in the millage rate they set.  The state reduced their required rate from 1.737 mills to 1.696 mills.  The school board seemed to base the decision to not roll back as earlier discussed on the need to maintain a minimum of $8.0 million dollars in Fund Balance.  The proposed millage rate was based on a current year ending Fund Balance of approximately $10.0 million.  The Board chose to reduce their capital  rate to archive a $1.9 million dollar cut.  The WCTA has learned in conversation with the WCSD Finance officer that the actual (un-audited fund balance) will be over $12.3 million.

They have the fund balance excess to still meet their original objective.  With the "surprise" fund balance understatement they have the necessary dollars to reduce the burden on taxpayers by an additional $2.0 million and still have an fund balance in excess of $8.0 million.

Possible Grades

Improvement might be calculated in a manner such as this:

South Walton Mosquito Control District

'A' Grade for 2nd Year 

It appears that the South Walton Mosquito Control District (SWMCD) is track to receive an A rating for the second year in a row. A true out of the park performance is on the design board as they have filed their Department of Revenue report indicating a reduction in the operating budget above the state mandated 3% ad valorem collections applicable to special taxing district. Last year the Board rolled back their millage rate to to .0947 mills . This year they have reduced their budget drastically resulting in a proposed millage rate of .0744 mills.  This results in a 21.5% millage rate reduction. They accomplished their budget reductions through cuts in recurring expenses as well as capital purchases and freezing the salaries for their employee's at last years levels. The salaries of the SWMCD Director and his staff have been under intense scrutiny by two of the Mosquito Commissioners, Mr. John Magee and Mr. Charlie Burke. The salary study with the SWMCD conducted by WMBB News13 received local and state wide news coverage. Mr. D'Angelo's salary is within the top five salaries of Mosquito Control District in the State of Florida.  This board has consistently rolled back their millage rate and we recognize their excellent record of due diligence.

City of De Funiak Springs

First Taxing Authority To Override Legislature

According to the Tax Reform legislation recently signed by Governor Crist, the DFS City Council was mandated to roll back their total collections in ad valorem taxes by approximately $26,000 or 3% from their 2007 collections. The budget workshop held recently resulted in the City Council exercising one of the provisions of the legislation by the required unanimous vote (5-0) to raise taxes within the City by 6%. This action seems short sighted when the cry throughout the State of Florida - Lower Property Taxes. They narrowly escaped the loss of their share of the 1/2 cent sales tax. The goal this year was to lower property taxes - Not Raise Them 6%. Had they reduced the tax collections by $26,000 - the total revenue in De Funiak Springs would have increased by approx. $42,000.  As development occurs in De Funiak Springs property values will increase dramatically.  Those dramatic property values will equalize the values from North to South.  People will be faced with a simple choice - live in De Funiak Springs where the taxes are 50% higher or other parts of the County where taxes are lower.  They should roll back their rate.

      Walton County Board of County Commissioners

        Form Without Lasting Reductions

The BCC proposed reduction complies with the state required roll back in ad valorem tax.  The total reduction equals the mandated -9% cut in collections.  Such a reduction would normally rate an A from the WCTA, but in this case or rating is based on how they accomplished the reductions required.  Expenditures are generally either recurring expenses (payroll, benefits, office supplies, etc)  or one time non-recurring expenses such as a new building, purchase of land, or  similar capital expenditure.  The majority of the cuts were taken from the non-recurring or capital side.  To meet the challenges they will face with the "cap in the growth" of their ad valorem collections in the future they should begin the process of elimination or reducing their recurring expenses.  The growth that has occurred in the past three years in the level of compensation will have devastating effects in the next few years.  Salaries have increased by over 20%, employee benefits are still 100% paid by the County and retirement benefits are escalating.  Our grade is a B- for form and an F for function which averages a C-.  There is still room for further cuts or a realignment of cuts to receive a better final grade.