Agenda 02-20-24; 8-a - Minutes - Laserfiche WebLink

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36 1 Commissioner Richards asked Travis Myren to explain how the impact of a revaluation 2 would play into this. 3 4 Slide #13 Revaluation and Redistribution of Tax Responsibility • The revaluation will bring the assessed value of all property in the County up to current market rates. — The new assessed values will redistribute tax liability among property owners based on the new values. — An increase in value does not necessarily mean an increase in the amount of tax paid any individual property owner- - Increases or decreases from pre-revaluation property tax bills are determined by how a subject property value grows relative to other properties. Countywide Assessed Tax Rate per Property Tax Assessed Tax Rate per Property Tax I Value ii r0Value Revenue Pre-Renal $23.23 billion 0.8353 $194.01 million Pre-Reval $350,000 0.8353 $2,923 Post-Reval $35.04 billion 0,5537 $194.01 million Post-Reval @ 50.84% $527,940 0.5537 $2.923 50.84% Post Reval @ 25% $437,500 0.5537 $2,422 increase Post Reval @ 65% $577,500 0.5537 $3,197 ORANGE COUNTY 13 NnRTi-I CAROLINA 5 6 Travis Myren skipped ahead to slide #13 after slide #10 in response to Commissioner 7 Richards's question. Travis Myren explained that after a revaluation, the assessed value goes up 8 and the revenue neutral tax rate comes way down to produce the same amount of property tax 9 revenue. He said that same analysis carries forward to the individual homeowner. He explained 10 that if the individual value of a home increases at a rate that matches the overall percentage 11 increase of the countywide assessed value, the homeowner will not see a property tax increase 12 post-revaluation at the revenue neutral tax rate. However, if the individual property value 13 increases more than the percentage increase of the countywide assessed value the homeowner's 14 property taxes will increase even at the revenue neutral tax rate. Travis Myren said that 15 Commissioner Richards revaluation itself will not increase tax revenue, and the question is what 16 amount on top of the revenue neutral tax rate would be required to pay the debt service on the 17 bond. 18 The Board discussed the impact on the Northside community during the last revaluation 19 and the potential impact of future tax increases to Orange County residents following future 20 revaluations. 21 Commissioner Richards asked what others think a palatable tax increase would be. 22 Commissioner Hamilton said the bond will go to the residents on a ballot to decide. She 23 said they will be given the information on the tax implications and the Bond Education Committee 24 will educate them and they will have the opportunity to give feedback. She said the Board has 25 already received emails in support of a bond. She said the focus for her is that the Board knows 26 the needs and needs to choose a plan that will address them--she said she personally supports 27 option H + B. She added that the rest is up to the democratic process. 28 Commissioner Fowler said she would like to go with Option H. She said it provides much 29 needed funds and is realistic to get done, but also provides flexibility if needed and ensures the 30 county keeps a good bond rating.