Technological Advances in the Police Department

Tax reform continues to be a popular topic in Tallahassee. The first wave of property tax reform hit the budgets that were adopted by local governments last September. One-third of the cities in the state chose not to comply with the state legislature’s intended reforms (our City Commission voted to comply with the reforms and adjusted the city budget accordingly). The second wave, voted in on January 29, will also affect schools and will be reflected in the budgets to be adopted this September. The third wave is now being considered as the state legislature is in session. Some local government observers, including newspaper opinion writers, are calling on state legislators for careful consideration this time around to prevent core services including police and fire from suffering substantial cutbacks.

The belt-tightening in City departments has required some creativity. In the police department, senior management had already implemented some technology improvements and has expedited this trend by carefully budgeting (and seeking outside funding) for additional technological advances. The use of technology will help improve productivity and the effectiveness of patrol officers. Let’s review the police department’s improvements that have been made and those that are being planned.

Leading-Edge Technology Already in Use (Year provided)

Mobile Data Computers (2002)
These laptop computers installed in patrol cars provide officers with the ability to complete required documents, forms and reports in the field. As a result, preventative patrol time increased and the response to calls for service improved.

Tasers (2007)
Tasers project two small probes via insulated wires and transmit an electrical signal. Violent offenders suffer an immediate loss of neuromuscular control for the duration of the impulse. Each Taser is equipped with an audio-video recording device that allows officers to record information prior to, during, and after its use.

In-Vehicle Video Recording (2007)
Each patrol vehicle is equipped with an in-vehicle audio-video recording system. These devices provide a recording prior to, during, and after calls for service. This provides for accountability, and video evidence.

SOFICS (State of Florida Integrated Citation System, 2007)
SOFICS is a fully automated traffic management system that allows officers to print traffic citations, collect and warehouse data and transmit records electronically to the Clerk of Courts. SOFICS allows for a reduction of personnel resources in the Records Section, as inefficient data entry is no longer required. Efficiency will be further improved when electronic transmittal of records to the Clerk of the Courts is implemented later this year.

LiveScan (2008)
Implemented in 2008, LiveScan allows for the digital submission of offender fingerprints. Positive identification can be obtained on offenders within minutes, and offenders arrested for misdemeanor crimes can be processed at the Police Department rather than the County Jail in Bartow. As a result, operational costs are lowered and officers remain in the community to respond to calls for service.

Leading-Edge Technology Being Planned (year anticipated)

Wireless Camera System (2008)
The Police Department is planning to implement a wireless video camera system to view public areas. The system includes public WI-FI access for residents and will begin with four cameras. Additional cameras will be added in the future, and cameras can be moved as needed.

Thermal Imager (2008)
The Police Department will receive a thermal imager through a Department of Defense technology transfer program. Needing no light to operate, thermal imagers generate high quality images on the darkest nights, even through smoke. Uses will include patrolling construction sites to prevent copper theft.

Chief Herb Gillis substantially contributed to this article.

Tax Reform and the City's Budget

Our state legislature set up the second wave of tax reform as a proposal to be decided by the voters. The vote will take place at a special, statewide election on January 29. A 60% approval is needed for passage.

This proposal covers a range of complex items. If approved, it will have a destructive effect on the City of Lake Wales budget, and it will be the first time that school tax revenues will be affected. Let’s review the effect of the first wave of tax reform, and then look at the “second wave” tax reform proposal to be voted on, and the projected effect of the second wave on our town.

The Effect of the First Wave of Tax Reform

The first wave of tax reform contained a provision that allowed local governments to override it. Over one-third of the local governments in the state did so. Our City Commission voted to comply with the state legislature’s intent, and this year’s tax rate is 1.1 mills less than last year. The effect of this reduction, had the City Commission kept the same tax rate as last year, is as follows:

• The General Fund was reduced by $645,108;


• The Community Re-Development Agency (CRA) fund was reduced by $201,098;


• The Library Fund was reduced by $75,070


• Total reduction in tax revenue: $921,276

In order to meet the challenge of balancing the budget with such reductions, the City Commission took a number of cost-cutting measures, including:

• Trimming the City workforce by 13 full-time and one part-time positions. All of the full-time positions were, in effect, vacant – some employees were shifted to other positions, and police dispatching and payroll preparation were contracted out at a lower cost;


• The City changed from a self-insured health insurance plan to a less-expensive traditional plan, selected after bids were received;


• Finding other ways to accomplish tasks, such as closing the cemetery office and moving those two positions to the Parks Maintenance division, which allowed the termination of the contract for grass cutting at Lake Wailes and other parks.

The Second Wave Tax Reform Proposal

The proposal includes the following:

• It doubles the homestead exemption, from $25,000 to $50,000. This would not apply to school taxes;


• It ensures the “portability” of the “save our homes” provisions, up to $500,000. This allows homestead property owners to transfer their Save Our Homes benefit to a new homestead within two years of giving up their previous homestead. This provision will apply to school tax levies;


• It ensures a tangible personal property exemption of $25,000. This exemption will apply to school levies;


(Note: if approved, these three items would take effect January 1, 2008; the item below would take effect January 1, 2009)


• It provides a 10% cap on assessments for non-homesteaded property. This cap does not apply to school levies and will sunset in 10 years unless re-approved by voters.

The Projected Effect of the Second Wave on Our Town

The second wave of tax reform, if approved by the voters on January 29, will have the following projected effects:

• It will cut the General Fund tax revenue another $276,486;


• It will cut the CRA tax revenue another $293,838;


• It will cut the Library Fund tax revenue another $31,148.

The City Commission had already reduced the City’s tax rate by one mill over the two years before the first wave of tax reform. The first wave then cut the rate an additional 1.1 mills. Managing the second wave of tax reform, should it be approved by the voters, will be much more difficult.

Dealing with the Challenges of Tax Reform

When I was in college a professor told us that the founding fathers intended for the government of these United States to be like a layer cake with three distinct layers: federal, state, and local. However, over 230 years later, our layer cake looks more like a marble cake. The federal government is setting priorities for states and local governments; the state is reviewing and approving city annexations and zoning designations; and the cities and states are lobbying Congress for favorable legislative action.

The “marble cake” analogy comes to mind when I think of Tax Reform, a popular topic in Tallahassee these days. Our town’s budget has been through one wave of tax reform, and on January 29 voters across the state will decide if there will be a second wave. What were the consequences of the first wave? And what will likely be the consequences of the second wave?

THE FIRST WAVE

In the last three years the Lake Wales City Commission has lowered the city tax rate over two mills, from 9.44 mills to 7.3521 mills. The reduction of the first mill was called for by the City Commission; the reduction of the second mill came after careful deliberation as the Commission’s response to tax reform. (Please note that some cities did not follow the path intended by the legislature and kept their previous millage with a super-majority vote of their city council.)

If our City Commission had not reduced the tax rate the second mill it would have received $921,276 more than what is now being received at the adopted millage. This was a very difficult decision for the City Commission to make in light of these prevailing conditions:

1. Just like in everyone’s household, the price of necessary items keeps going up. In the last three years, City expenditures for the listed items have gone up as follows:


• Gasoline - 40%


• Insurance - 40.2%


• Electricity - 35.2%


• Operating Supplies - 41%

Also note that in the first two years, insurance costs – health, worker’s compensation, and property – went up 74%! In response, the City Commission approved a change in the health insurance carrier and the terms of coverage. With these changes and fewer employees to be covered, insurance costs leveled off to 40% in the third year.

These and many other necessary items have risen drastically in the last three years, leaving the City (just as in your own household) with a limited ability to control these cost items. Despite the increases noted above, the overall General Fund expenditure budget for the current year is below the level it was two years ago.


2. The City has been working to build up its cash reserves since the 2001 fiscal year, when cash reserves were used to cover a serious budget shortfall. The City had made good progress towards establishing a healthy cash reserve until the unanticipated insurance costs rose drastically in the last two years. The City is committed to re-building this reserve.
   
   These reductions have been welcomed by taxpayers, especially small business owners and the owners of rental property who are not covered by the “Save our Homes” Act, (which came into effect in 1995) that capped the county property appraiser’s office assessed value of homesteaded property at 3% per year. At the same time, the difficulty of achieving a balanced budget in the face of these thorny conditions faced by the City Commission last September can now be appreciated.

THE SECOND WAVE

On January 29, voters will have the opportunity to vote on the second wave of tax reform. Next week’s column will explore the expected results and ramifications of that important election.

Effects of Tax Reform on the City Budget

In June, the state legislature held a special session and approved a two-part tax reform package. A number of newspaper stories have appeared reporting on the effect of tax reform on various cities. In Lake Wales, the effect from Part One of the tax reform is severe. If Part Two is approved, it will amount to a fiscal train wreck.

TAX REFORM PART ONE

Part one of the tax reform package requires cities and counties to cut their tax rates. (The legislature also provided a method for cities and counties to exempt themselves from the requirement, but most local governments felt that the exemption was not feasible.) The formula for the tax rate cut results in a property tax reduction of 12.89% for Lake Wales --from 8,44 mills in the current yeaar to 7.3521 mills in the new fiscal year starting October 1. (A mill is $1 of tax per $1,000 of taxable value.)

Because Lake Wales is growing, even with the rate reduction next year, the tax revenue proceeds will increase by $16,251 in the General Fund over the proceeds from the current year. But to put this in perspective, had there not been tax reform, at the current 8.44 millage rate, the General Fund would have realized $921,276 next year in additional revenue over the current year.

The problem with this relatively small increase in tax revenue next year is that other revenues are also down, and expenses continue to climb. For example, revenues other than property taxes in the City's General Fund, which include state revenue sharing and other intergovernmental revenues, are down to the same level as six years ago; and the County contract for City fire services to the unincorporated area around the City has been cut 40% below what it was two years ago.

At the same time, the City has had alarming increases in some expenses. Insurance categories in the General Fund other than health insurance have increased 31.2% in the past six years! This expenditure now tops $1 million annually. Health insurance costs have risen drastically --over 20% from the current year adopted budget. Recently the City went to bid to provide other options. Other expenses gave grown to ensure that City services are adequate to cover the growing areas of the City. Furthermore, the City is still re-building reserves from the reduction in General Fund balance in the 2000-2001 fiscal year.

Tax Reform Part One had had a severe effect on the City's proposed budget, eliminating 12 positions (one person serving in a part-time position is the only actual lay-off), and not funding $487,450 in capital outlay requests including the purchase of replacement police vehicles and a fire department truck.

TAX REFORM PART TWO

This part of the program will be voted on in a statewide referendum on January 29. If approved, the General Fund would lose an estimated $683,000. When coupled with the cuts already made in Part One, there would be noticeable reductions in service.

Part One of the Legislature's tax reform package did not include schools. Taxes supporting schools will be included in Part Two.

Judy Delmar contributed to this article.