Dear Volusia County Chairman Frank Bruno: Thank you for allowing public discourse on the recent ECHO grants given by the county for land purchases. As I stated at the hearing, Volusia Tax Reform has had issues with land purchases made under both the Volusia Forever and ECHO programs based primarily on the disconnect between historical taxable assessed values and final purchase prices.
When we brought these issues to the attention of the citizens advisory panels in both cases, we felt more like the messenger being shot than a taxpayer asking reasonable questions. There is absolutely no reason for the advisory panels to be offended by any suggestion the prices are exorbitant for land purchases made by the county. They have little to do with the final prices, which are generally negotiated behind closed doors by staff.
If anything, we'd like to see more input in the negotiations by these Citizens panels. They appear to be dedicated volunteers with plenty of savvy who are being underutilized. The county appraiser has responded to our inquiries by explaining that government values land differently than would a private buyer. Fair enough. But, that being the case, perhaps some changes should be made to the system to allow for the taxpayers interests.
We suggest adding price to the points system used to establish priorities for ECHO purchases. If a seller wants $100,000 for a property, he might be given a score of 100 points. If he is asking $200,000, perhaps he only gets 50 points. At least this would mimic the process a private buyer would assign to a purchase and give some negotiating muscle to the county at the same time.
When I say taxpayers get the fuzzy end of the lollipop, I mean the county fails to generate much, if any, tax revenue by these properties being valued at such low levels for years, then, magically they become prime pieces of real estate when government expresses an interest. So taxpayers lose on the income end and lose again on the sale price.
When I say taxpayers get the fuzzy end of the lollipop, I mean the county fails to generate much, if any, tax revenue by these properties being valued at such low levels for years, then, magically they become prime pieces of real estate when government expresses an interest. So taxpayers lose on the income end and lose again on the sale price.
One of many examples we brought before the Volusia Forever Committee was the Ford parcels, valued at $77,500 for a decade until the county purchased them in 2007 for over $1.5 million using four escalating appraisals each adding unreasonable assumptions to increase the value to 2,000% of the historical taxable just value.
I would suggest this is an example of negotiating at its worst with other peoples money. This practice of manufacturing projects of supposedly great importance solely on the basis that if we don't spend the grant money, someone else will is a terrible example of proper stewardship and is driving our local economy into a ditch. Let me explain how this process is so damaging.
In a recent breakdown of property tax revenues by valuation provided by the appraisers office, it was revealed that the top 2.9% (basically those properties valued at $300K and above) pay 30% of all tax revenue. On the other end due to rising exemptions and falling land values, nearly 60% of the properties in Volusia County have net adjusted values under $50,000 which translates into little or no property tax revenue.
This means when the bottom 60% decide they want a new park on the ocean or a Farmers Market or a multi-million dollar pier renovation, they can vote for it confident they won't have to pay the tab. Couple this with the fact that nearly a third of the county land is off the tax roll due to being owned by a government or otherwise exempt agency and you have a disastrous multiplier effect that piles these expensive adventures on the backs of the top 25% of property owners.
This discourages investment and lowers the property values of potentially the most productive group of our citizens, small business owners who normally provide most of the jobs in a good economy. In my recent paper titled "Darwin was right" which I distributed to the Council, I point out that Volusia County became overly dependent on government institutions years ago by providing wages and benefits that couldn't be matched by the private sector.
This drew the most talented and ambitious members of our community into service for the same government that now finds there is no matching pool of private sector taxpayers left to absorb the bills for this spending binge. I was proud of the effort you made to curb the salary of the recently hired Halafix Area Advertising Authority board director.
Please apply some of this same concern to future land purchases as well. We understand you plan to pursue more waterfront land purchases under the ECHO program. If they follow similar patterns we've witnessed in the Forever program, this could be a disaster for taxpayers and further depress property values county wide.
You don't need a six figure eonomic advisor to tell you why Volusia can't attract business. Just ask the buyers in Plantation Bay why they tend to buy on the Flagler side of the County Line. Many notice the seven mil difference in property tax rates before they sign on the dotted line.
You don't need a six figure eonomic advisor to tell you why Volusia can't attract business. Just ask the buyers in Plantation Bay why they tend to buy on the Flagler side of the County Line. Many notice the seven mil difference in property tax rates before they sign on the dotted line.
Volusia County gets less than 30% of all property tax revenue from commercial development, while more business friendly Seminole County derives 60% from commercial. Recently, you published a list of the top ten employers in Volusia County. Sadly, only two private companies, Walmart and Publix, made the Top 10 at Nos. 6 and 7, respectively. The rest were all taxpayer supported institutions. Volusia County schools , taxpayer supported hospitals, Volusia County government, state Government, federal Government.
The streets are going dark Mr. Chairman. Until we stop piling on the job creators, nothing will change. Thank you for your service to the community.