Creating a Shared Vision for Central Florida is all about what we want to be fifty years from now.  But we also cannot lose sight of challenges that are right around the corner.  As the seven-county region considers the question, "How Shall We Grow?" regional leaders must also share their focus with the here and now.  Seizing unexpected opportunities that present themselves like those suggested by Orange County Mayor Richard Crotty outlined in the recent Orlando Sentinel article (below) is what regional leadership is all about.

Orange's property-tax windfall would bankroll county's needs

David Damron

Sentinel Staff Writer

June 22, 2006

Orange County Mayor Rich Crotty on Wednesday unveiled an ambitious five-year $500 million plan to pay for roads, sidewalks, bus shelters, commuter rail and environmentally sensitive lands by tapping into a mammoth surge in property-tax revenue.

Crotty said Orange's breakneck growth has created an "infrastructure deficit" too deep in the red to ignore.

"This year we have a rare opportunity to leverage some extra dollars to make significant investment in our county's future," the mayor said.

"This answers the question of: Where do we grow from here?" Crotty said, co-opting a phrase planning groups are using with area leaders and residents working to frame a blueprint for the region's future.

Crotty's plan, "Invest in Orange County-Our Children's Legacy," is possible because of increasing property values.

Central Florida's cities and counties recently learned that values have spiked between 22 percent and 31 percent across the region. Taxable home, business and land values climbed nearly 22 percent in Orange over last year, tax officials announced this month.

If the county's tax rate remains the same-something Crotty supports-Orange could collect $78 million more in general revenue over last year's $355 million. That's nearly $61 million more than budget planners expected.

The new revenue would back a more complex funding plan involving bonds that would provide $500 million for the projects.

The largest chunk of the money would go toward transportation.

Crotty would spend $250 million for 17 proposed road projects to relieve clogged arteries, including Edgewater Drive, Lake Underhill Road and Dean Road. The money would improve and widen the roads, building another 100 lane miles.

Another $125 million would pay for an array of transit needs. A big portion-likely in the range of $30 million-would go toward Orange's contribution to a regional commuter-rail project proposed to run from Volusia County to Osceola County. The first leg would open in 2009.

Bus shelters, sidewalks, pedestrian bridges and intersection improvements would share in the added funding. Less than 10 percent of Lynx bus stops have shelters now.

The remaining $125 million would go to environmental preservation. Orange has spent nearly all the $20 million it set aside for sensitive-land purchases four years ago. Crotty said in his State of the County address last month that he planned to pitch in $10 million more.

But environmentalists and County Commissioner Linda Stewart balked, saying that amount would buy little, given skyrocketing property costs. They lobbied for more money, preferably from a permanent funding source.

Although the $125 million proposed by Crotty isn't that permanent source, it does allow for significant land purchases while groups look for long-term funding. Talks are beginning about a ballot proposal that would tap property taxes for land purchases, as some surrounding counties already have.

"Up to now, Orange County has been way behind," said Charles Lee, director of advocacy for the Florida Audubon Society. "This is a great leap forward."

Although he praised Crotty's funding boost, Lee said Orange still remains alone among Central Florida counties in setting up a permanent land-purchase funding source.

Crotty plans to use a complex financing scheme to tap the gush of new property-tax revenue.

Typically, Orange rolls some of its sales-tax revenues into the general budget, which is supported mostly by property taxes. But because property taxes are adding so much additional money to the general budget, less sales-tax money will be needed to prop it up.

Finance officials think they can use about $40 million from sales taxes to float bonds and borrow $500 million during the next five years. The bonds would be paid back over 20 to 25 years-money will come from continued expected increases in property-tax and sales-tax revenues.

Crotty's move all but rules out any chance of a tax cut. Other parts of the state, including Palm Beach and Sarasota counties, are considering using their additional property taxes to give residents a break.

Crotty said most of the new property-tax revenues will come from people moving into new homes and from businesses. They pay higher tax rates because their property is assessed at current-day values. Most existing homeowners are protected from skyrocketing tax bills because of Save Our Homes, a state law that limits appraisal increases to 3 percent per year.

No commissioner so far has suggested that a tax cut should be a local priority. But budget talks don't heat up until later in the summer, and the mayor's overall budget plan won't be done until the end of this month. By the end of that process, the commission has to vote on whether to approve the whole package, including the $500 million in projects.

Still, Crotty's plan won a rousing endorsement Wednesday from Commissioners Stewart and Bill Segal.

"I'm thrilled with this bold stroke by the mayor," Segal said.

"The people are getting things that would normally require a tax increase," Stewart said. "This is monumental."

David Damron can be reached at ddamron@orlandosentinel.com or 407-420-5311.

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