Minutes 01-19-2024 - Retreat - Laserfiche WebLink

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36 Commissioner Richards asked Travis Myren to explain how the impact of a revaluation would play into this. 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 Ta Assessed Tax Rate per Property Tax � Value �i 00 Value I Revenue Pre-Reval $23.23 billion 0.8353 $194.01 million Pre-Reval $350,000 Wr0.8353 $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 13 ORoR xECOUNATY Travis Myren skipped ahead to slide #13 after slide #10 in response to Commissioner Richards's question. Travis Myren explained that after a revaluation, the assessed value goes up and the revenue neutral tax rate comes way down to produce the same amount of property tax revenue. He said that same analysis carries forward to the individual homeowner. He explained that if the individual value of a home increases at a rate that matches the overall percentage increase of the countywide assessed value, the homeowner will not see a property tax increase post-revaluation at the revenue neutral tax rate. However, if the individual property value increases more than the percentage increase of the countywide assessed value the homeowner's property taxes will increase even at the revenue neutral tax rate. Travis Myren said that Commissioner Richards revaluation itself will not increase tax revenue, and the question is what amount on top of the revenue neutral tax rate would be required to pay the debt service on the bond. The Board discussed the impact on the Northside community during the last revaluation and the potential impact of future tax increases to Orange County residents following future revaluations. Commissioner Richards asked what others think a palatable tax increase would be. Commissioner Hamilton said the bond will go to the residents on a ballot to decide. She said they will be given the information on the tax implications and the Bond Education Committee will educate them and they will have the opportunity to give feedback. She said the Board has already received emails in support of a bond. She said the focus for her is that the Board knows the needs and needs to choose a plan that will address them--she said she personally supports option H + B. She added that the rest is up to the democratic process. Commissioner Fowler said she would like to go with Option H. She said it provides much needed funds and is realistic to get done, but also provides flexibility if needed and ensures the county keeps a good bond rating.