Okaloosa commissioners trade barbs over tax rate

SHALIMAR — Okaloosa County Commissioner Carolyn Ketchel’s suggestion to implement the rollback countywide property tax rate for the upcoming budget year is a ploy to gain “political points” while she seeks re-election, Commissioner Nathan Boyles said at the board’s recent special meeting.

Monday's session took place so the all-Republican commission could consider its staff’s recommendation to retain the existing 3.83 millage rate for fiscal year 2023, which starts Oct. 1.

The 3.83 rate has been in place for the past six years. To help keep county workers' salaries competitive and deal with skyrocketing costs for fuel and other items, the levy should remain in place for the new budget year, County Administrator John Hofstad recommended.

Okaloosa County Commissioner Carolyn Ketchel
Okaloosa County Commissioner Carolyn Ketchel

By the end of Monday's meeting, the board had unanimously agreed on a tentative fiscal ’23 countywide millage rate of 3.83. It equates to $383 per $100,000 of taxable property value.

Before joining with her fellow commissioners in giving tentative approval to maintaining that rate, Ketchel pushed for implementing the rollback rate of about 3.45 mills for the next budget year.

Because of higher property values, the rollback millage rate would maintain the same property tax revenue received this budget year.

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“We all know that government spends as much as you give it,” said Ketchel, who will face fellow Republicans CarySue Beasley and Matt Turpin in the Aug. 23 primary election.

She said the commission should “reduce the hardship for taxpayers” who are trying to deal with inflation and higher food and gasoline prices, and that the county has “been blessed with a lot of federal dollars.”

The latter remark referenced the $40.9 million allocated to Okaloosa County from the U.S. Treasury as part of the 2021 American Rescue Plan Act.

Nathan Boyles, County Commission District 3
Nathan Boyles, County Commission District 3

Ketchel aims to win a third four-year term as the commissioner representing District 2, which includes Shalimar, Okaloosa Island and parts of the Fort Walton Beach area.

She noted Monday that rising property values will help the county collect about $11.5 million more in property taxes compared to the current budget year.

Boyles, who often says he doesn’t plan to seek re-election as the District 3 commissioner after his current term ends in November 2024, asked Ketchel what items she would cut from next year’s proposed budget in order to implement the rollback rate.

Ketchel referred the question to Hofstad, who said one possible way might be to reduce the county’s general fund reserves by about $6 million.

After Ketchel was unable to provide suggestions on what else might be cut, Boyles alleged that her quest for the rollback rate was to gain political points in her current re-election campaign.

“I find your comments are demeaning,” Ketchel told Boyles. “We’ve been blessed this year with federal dollars that have left us in a position with more reserves.”

She said she would have recommended the rollback rate regardless of whether she was seeking re-election.

District 1 Commissioner Paul Mixon then said, “We should feel blessed to live in this county and have a millage rate that is not going up. It’s fiscally responsible to keep the rate the same.”

District 4 Commissioner Trey Goodwin said he supports having a healthy reserve fund in case of “catastrophic events” and that, without having data on how much of the county’s anticipated property tax revenue increase was attributed to new construction, could not make a reasoned decision on going with the rollback rate.

This article originally appeared on Northwest Florida Daily News: Okaloosa County Commissioners exchange political barbs on tax rate