OSCEOLA 360

An Investigative Look Inside Osceola County

A Special Report for The Sun Post News

By Marcos A. Tejeda
Publisher & Editor-in-Chief
The Sun Post News

After warning that Amendment 3 could create a revenue loss of more than $79 million by 2028, Osceola County enters a critical stage tonight: its first FY2027 TRIM budget hearing. The debate is no longer only about what the County could lose. Now taxpayers need to watch the tax rates, special assessments, services and priorities that could ultimately affect their wallets.

For the past several days, Osceola County has been talking about what it could lose.

Tonight, another conversation begins:

How will the County pay for what it decides to preserve?

At 5:30 p.m. today, September 3, the Osceola County Board of County Commissioners is scheduled to hold its first TRIM budget and special-assessment public hearing for Fiscal Year 2027 at the County Administration Building, 1 Courthouse Square in Kissimmee.

At first glance, this may look like another routine budget hearing.

It is not.

It comes only days after commissioners discussed the potential impact of Amendment 3 and after a County projection put the possible revenue loss at more than $79 million by 2028 if Florida voters approve the proposed expansion of the homestead exemption applicable to certain non-school local property taxes.

It also follows reports that approximately $12 million in improvement projects have been placed on hold as Osceola evaluates the fiscal uncertainty ahead.

That changes the question.

Until now, it has been:

How much could Osceola lose?

Beginning tonight, taxpayers should also be asking:

Who will pay to maintain the services Osceola decides to protect?

TRIM: Where the Budget Begins to Reach the Taxpayer

TRIM stands for Truth in Millage.

Behind that technical terminology is a process with very real consequences for property owners.

It is the process through which local governments publicly consider property-tax rates and move toward adopting the budgets that will finance government operations for the coming fiscal year.

Osceola has two TRIM hearings scheduled.

The first is tonight.

The second and final hearing is scheduled for September 21 at 5:30 p.m.

Between those two dates, Osceola County will move closer to one of its most important financial decisions of the year.

Because a budget is not simply a list of expenses.

It is a declaration of priorities.

The Big Number Remains $2.44 Billion

County Manager Don Fisher has recommended an FY2027 budget of approximately $2.44 billion.

The administration has also proposed keeping the General Fund property-tax rate at 6.7 mills, continuing a long-running policy of maintaining that rate.

But taxpayers need to understand an important distinction.

Keeping the millage rate unchanged does not necessarily mean every homeowner’s tax bill remains unchanged.

Property taxes also depend on taxable property values and applicable exemptions.

If a property’s taxable value increases, its tax bill can potentially rise even if the government does not increase the millage rate.

That means taxpayers should watch two numbers:

The rate government establishes.

And the taxable value to which that rate is applied.

They are different numbers.

But they eventually meet on the same tax bill.

Millage Is Only Part of What Property Owners Pay

Tonight’s proceedings also involve another important component:

Special assessments.

Osceola County uses Municipal Service Benefit Units and Municipal Service Taxing Units — commonly known as MSBUs and MSTUs — to fund certain services.

Depending on the particular district or assessment, those services can include street lighting, solid waste, maintenance and other designated public services.

Non-ad valorem assessments differ from traditional property taxes because they are generally tied to a particular service or benefit rather than being calculated simply as a tax on property value.

For the homeowner writing the check, however, the distinction can feel considerably less important.

It can all end up on the same bill.

Buenaventura Lakes Has a Reason to Pay Attention

Among the communities appearing in the County’s special-assessment process is Buenaventura Lakes.

Public notices associated with the process identify BVL along with other communities in connection with street-lighting assessments.

That does not mean every community listed will automatically receive an increase.

It is important not to make that claim.

Rates and circumstances vary by individual service unit.

But BVL’s presence illustrates something OSCEOLA 360 has repeatedly found:

The County budget is not experienced equally across Osceola.

A decision can affect a Poinciana homeowner one way.

A BVL resident another.

A business along U.S. 192 differently.

And residents of a new development may face still another combination of taxes, assessments and development-related costs.

That is why taxpayers should look beyond the headline millage rate.

Fire Rescue Deserves Particular Attention

There is another reason to closely examine the financing of emergency services.

During the County’s Amendment 3 workshop earlier this week, Commission Chairman Brandon Arrington said public safety accounts for approximately 70% of the General Fund budget.

He also acknowledged that under a severe fiscal scenario, even a fire station could enter the discussion.

That creates an increasingly difficult equation.

Osceola is growing.

Every major residential development brings more residents.

More residents can mean more emergency calls.

More traffic.

More crashes.

More medical emergencies.

And eventually greater demand for fire stations, ambulances, equipment and personnel.

At the same time, County leaders are examining a scenario in which one of local government’s major recurring revenue sources could be substantially reduced.

Growth requires more services.

Tax reform could mean less revenue.

Eventually, those two lines have to meet.

New Development Pays Fees — But Does It Pay Enough?

Osceola County also charges impact and mobility fees associated with new development.

New residential construction can generate charges supporting transportation, schools, parks and Fire Rescue, while commercial construction is also subject to applicable development-related fees.

Those revenues are designed to help address some of the infrastructure demands generated by growth.

But that leads to a larger question that deserves serious examination:

Is growth paying the full long-term cost of growth?

Osceola can build thousands of homes.

It can collect impact fees.

It can generate additional property-tax revenue.

But those new communities eventually require roads, deputies, firefighters, parks, schools and other public infrastructure.

If the long-term cost of serving new development grows faster than the recurring revenue it generates, existing taxpayers eventually feel the difference.

That calculation should be transparent.

Amendment 3 Changes the Long-Term Equation

This brings us back to the $79 million.

Not because we need to repeat this week’s headline.

But because that projection now needs to be placed alongside every major budget decision.

Osceola County projects that Amendment 3 could eventually reduce County revenue by more than $79 million by 2028.

That does not mean Osceola loses $79 million this year.

It does not mean that amount disappears from the budget immediately if voters approve the amendment.

It is a future projection.

But governments cannot wait until 2028 to begin preparing for 2028.

That helps explain the hiring freeze.

It helps explain zero-based budgeting.

It helps explain why some projects are being postponed.

And it explains why tonight’s TRIM hearing deserves considerably more public attention than a routine budget meeting normally receives.

Taxpayers Need to Understand the Basic Math

When government loses a significant source of recurring revenue, there are only so many broad alternatives.

It can spend less.

It can eliminate or reduce services.

It can delay projects.

It can use available reserves temporarily.

It can seek other revenue permitted under state law.

It can shift certain costs through legally authorized fees or assessments.

Or it can use some combination of those approaches.

What government cannot do indefinitely is spend money it no longer collects.

That is why the Amendment 3 debate cannot end with the statement:

“Property taxes will be lower.”

The next question must always be:

What happens to the services those taxes were paying for?

If the service disappears, the government realizes an actual savings.

If the service continues, it still has to be financed.

Special Assessments Deserve Close Scrutiny

This is an area OSCEOLA 360 intends to watch carefully.

Special assessments are legitimate government financing mechanisms governed by law and used to fund particular services or benefits.

But if Osceola faces future restrictions on a major source of property-tax revenue, any significant future expansion of fees or assessments deserves scrutiny.

We are not saying Osceola County has decided to replace $79 million through special assessments.

There is no evidence supporting such a conclusion.

What we are saying is that taxpayers should now watch both sides of the ledger.

If one revenue source falls:

Does another rise?

If a tax is reduced:

Does another charge appear?

If a project is frozen:

For how long?

If a service is moved away from General Fund financing:

Who begins paying for it?

That is the investigation.

Property Owners Have Another Deadline Approaching

While County commissioners debate how much government will collect, property owners should also pay attention to another part of the process:

The value assigned to their property.

Osceola County’s TRIM Notices were mailed in August, and the Value Adjustment Board process provides property owners a mechanism to challenge certain property assessments and exemption determinations within the applicable deadlines.

That distinction is important.

One debate concerns how much government charges for each $1,000 of taxable value.

Another concerns whether the taxable value itself is correct.

Both can affect the final bill.

Property owners who believe their assessment is incorrect should not wait for the County’s final budget hearing before reviewing their individual filing deadline.

Tonight, We Need to Hear From All Five Commissioners

During Monday’s workshop, Chairman Brandon Arrington made specific public statements about the fiscal threat facing Osceola.

As the budget process advances, taxpayers need the same level of clarity from:

Brandon Arrington.

Cheryl Grieb.

Peggy Choudhry.

Viviana Janer.

Ricky Booth.

General statements about fiscal responsibility are no longer enough.

Residents need answers.

Which services do commissioners consider untouchable?

Which projects can wait?

Where could spending realistically be reduced?

Which alternative revenue sources would they consider?

Which would they reject?

Would they use reserves?

If so, how much and for how long?

Would transportation be reduced?

School-security funding?

Infrastructure?

Fire Rescue?

Eventually, the budget will force those priorities out of speeches and into numbers.

What OSCEOLA 360 Is Watching Tonight

Five issues deserve particular attention.

First, the millage rates that advance through the budget process.

Second, special assessments and any changes that directly affect property owners.

Third, any significant changes from Fisher’s approximately $2.44 billion recommended budget.

Fourth, any concrete decisions involving projects that have been postponed, restored or eliminated.

And fifth — perhaps most importantly — any indication of how County leaders intend to prepare financially for the potential effects of Amendment 3.

Then tonight’s actions will need to be compared with what happens at the final TRIM hearing later this month.

Because proposals can change.

Final votes turn political priorities into government policy.

Impact on the Community

For a homeowner, these decisions can eventually appear on a tax bill.

For a business owner, they can emerge through assessments, service costs or infrastructure decisions.

For a family in Poinciana, the issue could eventually involve transportation.

For BVL, it may involve services financed through special districts or assessments.

For someone waiting for a road, park or fire station, it could mean how long that project remains on hold.

And for a family that recently purchased a home in Osceola County, the larger question is increasingly important:

What does it really cost to live in a county that continues to grow?

Conclusion

Osceola County will not solve all of its fiscal challenges tonight.

Nor will commissioners decide tonight exactly what will happen if voters approve Amendment 3.

But the County will begin putting formal numbers into a debate that, until recently, was dominated largely by projections and scenarios.

That is where this investigation becomes particularly important.

Local governments have many mechanisms for financing services.

Property taxes.

Special assessments.

Impact fees.

Mobility fees.

Service charges.

The terminology changes.

For taxpayers, the central question does not:

How much ultimately comes out of my pocket?

Earlier this week, Osceola put a number on what it says it could eventually lose:

More than $79 million by 2028.

Beginning tonight, residents need to start watching the other half of the equation:

How will Osceola replace what it loses, what will it be willing to sacrifice, and who will ultimately pay the difference?

That will tell us far more about the County’s priorities than any political speech.

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By Marcos A. Tejeda
Publisher & Editor-in-Chief
The Sun Post News