The Okaloosa Board of County Commissioners held a budget workshop on Tuesday, where County Administrator John Hofstad presented the proposed $622,975,411 budget for FY 2023-2024.

In a collaborative effort with key staff and county commissioners, the proposed budget aims to address economic growth, workforce housing, personnel benefits, and public safety concerns.

• John Hofstad expressed his enthusiasm for the proposed budget, stating, “I am pleased to present the proposed budget for FY 2023-2024. This budget represents a collaborative effort between key staff in our operating departments, the Office of Management and Budget, and you, the Board of County Commissioners.”

Economic Growth and Development

Notwithstanding certain financial pressures, Okaloosa County is experiencing substantial growth and development. Hofstad highlighted the County’s efforts to attract large-scale commercial and light industrial companies to the non-developed Shoal River Ranch area. “The County purchased land in Shoal River Ranch, and we’re actively expanding water and sewer lines in the area to support economic development,” he stated in his letter.

• The Florida Legislature’s recent award of $7 million towards the Shoal River water reclamation facility and the state’s Jobs Growth Infrastructure grant award of $3.2 million further underscore the state’s support for Okaloosa County’s economic development efforts.

Hofstad added, “The construction of the Southwest Crestview Bypass is exceeding expectations, and upon completion, it is expected to have positive impacts on our transportation system, with decreased travel times and congestion, increased travel capacity, and potential economic expansion with the availability of more land.”

Real Estate Boom and Workforce Housing Concerns

Okaloosa County is experiencing double-digit property value percent increases, and home purchases remain brisk, with over 50% of homes sold within 30 days. The County has approved the development of 2,800 new single-family homes and new apartment buildings, with another 661 homes nearing approval, which should increase housing availability.

However, with steady population growth, including military families, home affordability has become a consistent concern. To address this issue, the County is actively working on a comprehensive Attainable Workforce Housing Strategic Plan. 

• Hofstad emphasized the significance of this plan, stating, “We are committed to finding solutions to the housing affordability challenge. The Countywide Comprehensive Attainable Workforce Housing Strategic Plan will be completed by year-end and will include actions and strategies to develop, preserve, and increase access to housing for our workforce and families.”

Property Taxes

While facing inflation and energy cost fluctuations, Hofstad says that Okaloosa County remains committed to conservative budgeting practices. The recommended budget includes no ad valorem tax rate change from the current 3.8308 mills. The proposed budget for all funds totals $622,975,411, representing an 11.0% increase over the FY 2023 adopted budget.

• Hofstad assured, “We are managing staffing shortages and escalating capital equipment and construction costs through conservative budgeting practices. Our goal is to use our resources wisely while maintaining the quality of services our residents expect.”

The total recommended General Fund budget for FY 2023-2024 is $168,564,500, which represents a 7.9% increase from FY 2022-2023. Property tax revenue serves as the primary source of General Fund revenue, providing $93,900,087 or 56% of the total revenue.

Personnel and Employee Benefits

Recognizing the importance of county employees, Okaloosa County conducted a compensation study to align pay grades with the market. Initial results indicate that county salaries are 9.3% below the market minimum. 

• The Board of County Commissioners approved a mid-year 3% employee salary increase to begin closing the gap, and there are plans for a 4% increase in both FY 2024 and FY 2025 to bring county salaries closer to market wages.

Hofstad acknowledged the dedication of county employees, stating, “Okaloosa County employees are the most essential resource of our government structure. Their abilities, knowledge, and experience are difficult to replace, and we are committed to providing competitive pay, useful benefits, and retaining quality talent.”

Public Safety

Public safety remains a top priority for Okaloosa County, and the proposed budget includes significant investments to enhance law enforcement services and improve facilities.

One of the key areas of focus is the County Jail, where several critical projects are planned. Upgrades to electrical power server rooms, air handlers, and fire systems are on the agenda to bolster safety and security within the facility. Additionally, there are plans to enhance inmate facilities by improving jail showers. 

• Addressing the issue of overpopulation and aging infrastructure, the FY 2024 budget carries forward $1.5 million to complete a jail master plan. The plan is designed to provide viable solutions for the existing jail facility and manage the challenges posed by the rising number of inmates.

In the realm of law enforcement, the Okaloosa County Sheriff’s Office is set to receive substantial funding to meet the increasing demand for services and to address recruitment and retention challenges. The FY 2023-2024 budget request of $56,361,307 represents a $4.7 million or 9.1% increase over the prior year’s budget.

• Furthermore, the budget sets aside an additional $3,964,210 for the Sheriff’s Office to provide contract services throughout the County, including security for airports and support for tourist development. 

To improve communication and information sharing among various public safety agencies, the proposed budget includes a $1.4 million Public Safety Data Information exchange project. This project will enable seamless communication and coordination between the County Jail, Courts, and other law enforcement agencies, ultimately enhancing the overall safety and security of the community, according to the county. 

Special Revenue and Enterprise Funds

For Tourist Development, the County has been receiving funds for the expanded, countywide Tourist Development Taxing District. This tax is assessed to overnight stay guests of short-term rentals such as hotels and vacation rentals.

The funds are utilized for tourism-related activities, amenities, environmental improvements, and preservation efforts, with distribution to municipalities based on an approved plan. 

• The department also plans to expand and improve the highly popular Little Adventures program, which encourages families to engage in nature and water activities. 

The FY 2023-2024 proposed budget of $82,175,521 represents a 1.4% increase from last year’s budget. Notable projects include Veterans Park Phase II, Artificial Reefs, and the construction of public beaches at Tarpon and Crystal Beach.

Okaloosa County owns and maintains three airports: Destin-Fort Walton Beach Airport, Destin Executive Airport, and Bob Sikes Airport. The primary commercial hub is Destin-Fort Walton Beach Airport, which continues to expand its services with direct flights to major cities. 

The FY 2024 projects include the East Terminal and Baggage Claim expansion and West Terminal and Baggage Handling Expansion. The FY 2023-2024 proposed budget of $63,377,926 represents a 24.0% increase over the previous year. 

• The notable increase is primarily attributed to a $6 million boost in reserves from FY22 year-end financial results.

For 2024, Water & Sewer Department’s major activities include the design of the new Shoal River Ranch water reclamation facility and clay pipe lining. The proposed FY 2023-2024 budget is estimated at $88,574,594, reflecting an 11.8% increase.

The Waste Resource Management division in Public Works oversees the contracted services for solid waste collection and disposal within the County’s north and south franchise areas. The division is also responsible for managing four closed landfills, three of which are still undergoing active remediation. 

• The proposed FY 2023-2024 budget is $23,664,190, representing a 35.7% increase from last year. This increase is attributed to fund reserves that rose to $6.3 million in FY22, with plans to utilize these funds for the construction of a new transfer station.

The EMS Division provides Advanced Life Support ambulance services throughout the County, ensuring patients are transported to medical facilities efficiently. The proposed FY 2023-2024 budget is $15,095,010, representing a modest 2.0% increase from the previous year.

Formal Adoption Process

The proposed budget reflects staff recommendations and incorporates feedback received at budget workshops. The formal adoption of the final budget will take place after two public hearings scheduled for September 5, 2023, in Crestview, and September 19, 2023, in Shalimar.