The move to create a special taxing district for the county sheriffis expected to have uneven impacts, reducing the property tax burden on municipal residents while increasing it for those in unincorporated areas, potentially fueling opposition to the proposal.
The special taxing district is on the table following renewed concerns about the unabated budget hikes being proposed by the Palm Beach Sheriff's Office, raising doubts about the county’s ability to sustain the higher spending levels in future years. They have also sparked frustration among county officials, who say Sheriff Ric Bradshaw's budgets lack transparency because they do not include the detailed line-item breakdowns required of other county departments.
Nonetheless, a taxing district
especially for the sheriff's office is eliciting push back, in large part because of what critics say would be a disproportionate burden across the Palm Beaches.
A Palm Beach County resident in one of the county's 39 municipalities could realize an annual property-tax savings of about $1,000 on a home assessed at $500,00. That home with the same assessment in an unincorporated area could see an increase of roughly $2,000 under the plan to create a Municipal Service Taxing Unit, commonly known by the MSTU acronym, to fund most of PBSO's operations.
The MSTU is far from a done deal.
And if it is created, it would not be implemented until fiscal year 2028, which would begin on Oct. 1, 2027.
But by a 5-2 vote on July 14, the county commission voted to publicly advertise the MSTU ordinance. A public hearing will be held on Sept. 15 to discuss the proposal in more detail.
The issue has exposed a growing divide on the commission. Commissioners whose districts include mostly cities generally support the idea, arguing municipal residents currently subsidize sheriff patrols in unincorporated areas. Commissioners whose districts include mostly unincorporated areas say the plan would unfairly shift costs onto their constituents.
Two of the seven commissioners, Maria Sachs and Mayor Sara Baxter, whose districts include much of the unincorporated region, are against the idea while the other five, whose districts include mostly cities, support it.
The discussion of the special taxing district at a July 14 commission meeting got testy.
Baxter suggested that Commissioner Gregg Weiss, whose district includes West Palm Beach, not vote on the issue because he is term-limited and will not be on the commission after November. Weiss supports the creation of the special taxing district, arguing that city residents currently subsidize those who live in unincorporated areas.
What is an MSTU? Why is it being considered by county commissioners?
The MSTU is a special taxing district created to fund a specific service in a defined geographic area. Only taxpayers in that geographic area, the unincorporated region, would fund the MSTU.
At issue is the $752 million the sheriffspends on law enforcement. His other operations, such as overseeing county jails and courthouse security, would remain in the county budget since they are county-wide functions.
As for recusing himself, Weiss told The Palm Beach Post that a county commissioner’s primary responsibility is to make votes and set policy, not to grandstand and tell colleagues what to do.
"Not voting would be a dereliction of duty to my constituents," Weiss said. "There are specific circumstances where it is appropriate to recuse, such as a conflict of interest or perceived bias, as my colleague knows all too well. None of those circumstances apply, so yes, I will do what I was elected to do until I’m out of office."
Baxter did apologize to Weiss later in the meeting for the comments she made. Baxter is seeking reelection to a second term, and there is no guarantee that she will be in office after November. She faces a contested Republican primary, and several Democrats are seeking the opportunity to challenge her in the general election if she wins the GOP nomination.
By removing law enforcement from the county budget and transfering it to the MSTU, the overall county tax rate would decrease by about $2 per $1,000 of valuation or $1,000 on a home assessed at $500,000. But it could add as much as $4 per $1,000 of valuation on a home assessed at $500,000 in an unincorporated area, resulting in an increase of $2,000.
About half of the county's population reside in unincorporated areas.
Like Weiss, Commissioner Joel Flores called the current system unfair. He pointed out that Greenacres, where he had been mayor, pays about $20 million a year to have the sheriff patrol its streets, but it also pays for patrols in the unincorporated area because it’s part of their county tax bills.
Boynton Beach City Manager Dan Dugger said he does not envision his city becoming part of the MSTU, noting that the city is committed to keeping and maintaining its own municipal police department. He added that the anticipated property tax savings would be beneficial for Boynton Beach residents.
Jim Barnes, the village manager in Wellington, said the MSTU would not impact the village's current contract with the sheriff's office.
But like Dugger, Barnes said Wellington residents would benefit from not having to pay for patrols in unincorprated areas. The MSTU also would "provide greater clarity regarding who pays for which services and to better align costs with the communities that receive those services," he said.
Barnes noted that there are a lot of unanswered questions that must be addressed. They include how indicrect costs such as headquarter operations would be allocated.
Sherry Brown, director of the county’s Office of Financial Management and Budget, said at the July 14 commission meeting that a consultant could be hired to review Bradshaw’s budget to ensure that the proper expenditures are included in the MSTU.
Debate over whether MSTU should be created will continue Sept. 15
Commissioner Sachs, who represents areas west of Boca Raton and Delray Beach, called the MSTU unfair because it would significantly raise taxes on residents in her district, which is comprised of unincorporated areas. Baxter made the same argument when the issue was discussed on July 14.
County Administrator Joe Abruzzo urged the commission to consider creating the MSTU after the state's chief financial officer, Blaise Ingoglia, accused the county of overspending by more than $400 million in the current fiscal year.
Abruzzo claims Ingoglia failed to consider the impact of increased spending by Bradshaw. In the last two years, the PBSO budget has increased by nearly $200 million. Commissioners Flores and Maria Marino have called the increase “unsustainable.”
This year, Bradshaw accepted a $20 million cut to his proposed $1.2 billion budget, a move officials say was necessary to balance the county’s overall budget, which faced a $42.4 million deficit.
Even with the cut to the sheriff's proposal, the 7% increase PBSO will be granted for next year is still above the inflation rate and compares unfavorably with the 2% cut made by the county administration on departments that fall under its jurisdiction.
An MSTU would require Bradshaw to submit a line-item budget, something he has yet do. Marino said the MSTU would result in more transparency, forcing the Sheriff to justify his spending.
Bradshaw attributes much of the increase in his budget to salaries and wages, including overtime, factors that are largely governed by collective bargaining agreements. But without a line-item budget, it is difficult to tell how much is being spent, for example on executive compensation or on cities that contract with the Sheriff for dedicated patrols.
Critics, who include his former top aide, Michael Gauger, have complained that the union contracts Bradshaw has negotiated have been overly generous and note that Bradshaw negotiated the increases.
Mike Diamond is a journalist atThe Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: Sheriff taxing district could mean thousands more in taxes for some
