Local

Oviedo leaders inch toward 18% property tax hike

OVIEDO, Fla. — Oviedo property owners are bracing themselves for an extra hit on their annual tax bills this November, but the effects of a proposed increase won’t be felt equally across the city.

WATCH CHANNEL 9 EYEWITNESS NEWS

City Council members tentatively approved an 18% property tax increase Monday night as they attempted to avoid across-the-board cuts to services like police, fire and parks.

The increase was needed, council members said, because staff and operational costs are rising faster than inflation.

“Nobody likes to pay taxes, including me, but we’re doing the best we can,” Keith Britton said.

Read: Police share new details on fatal shooting at Daytona Beach jewelry store

For years, Oviedo has struggled to pay for its own infrastructure costs. The city is 80% residential, which doesn’t include apartments. That type of use doesn’t generate enough tax revenue to pay for the services residents demand.

On top of that, 39% of the city’s property value is covered by the state’s homestead tax exemption, which cost the government $15 million this year.

A decade ago, the exemption rate was significantly lower – and only cost $2 million.

Read: ‘A long time coming’: Brevard Public Schools cuts ribbon on first new middle school in decades

City Council members moved to create a fee to pay for the fire department in 2022, but backed away from the roughly 10-cents-per-square-foot plan after residents complained.

The 18% increase is a compromise to minimize the impacts on homesteaded properties, leaders said.

“They said if you have to do something to fund fire and police, do it with a millage rate so you’re still protected by homesteaded properties,” Councilwoman Natalie Teuchert recalled.

That means the bulk of the tax increase will be paid for by newer homeowners whose properties are valued double or triple their neighbors’ in the eyes of the government.

Read: Deputies search for person who stole boat in Volusia County

Council members will hold two more votes in September, which gives them time to tweak the numbers, especially as police and fire negotiations have not been settled.

The eventual increase, though, could be even higher if voters approve a referendum to pay for a new police station in November. The scaled-down proposal is happening after voters rejected a more expensive referendum in 2022.

Property owners will have to share a third cost more equally: the replacement of the city’s water pump station. In a separate discussion Monday night, council members agreed to move forward with a plan to take on debt to pay for the project.

The debt plan would mean bills will rise gradually over the next 10 years instead of a huge increase immediately. While that will be better for many residents who plan to move out by then, staff said, the plan would be more expensive long-term residents instead of the city paying for the new facility outright.

Click here to download our free news, weather and smart TV apps. And click here to stream Channel 9 Eyewitness News live.

0