Cities add $30M to 2012 tax rolls

Winter Park and Baldwin Park saw about $30 million in new growth in 2011, and Maitland may not be too far behind.

Winter Park added $1.6 million in commercial development and $19.7 million in residential development to its 2011-2012 tax roll, and Baldwin Park added $10 million in residential development, according to the Best Estimate released by Orange County Property Appraiser Bill Donegan on June 4.

Although Maitland didn’t add new developments, Donegan, a Maitland resident, said he sees a bright future for his hometown.

“They’re sitting in the best possible posture because some of the most desirable property has nothing on it,” Donegan said. “It will go from nothing to something.”

That “nothing” is the proposed four-block redevelopment of the downtown core. The city is reviewing several developers’ proposals for the area.

Despite the addition of new developments in Winter Park, the city’s total taxable value didn’t inch up. Winter Park saw a 0.23 percent decrease compared with 2011’s Best Estimate. Maitland saw a 2.51 percent decrease and Eatonville’s values declined more than 5 percent. Donegan said the lack of new construction value, the lingering effect of foreclosures and the annual deprecation of buildings contributed to the decreases.

Orlando, which includes Baldwin Park, saw a slight uptick of 0.47 percent, thanks in part to the budding medical city in Lake Nona. Orange County as a whole remained relatively flat, with a 0.03 percent decrease in property value.

Further declining values leave Winter Park and Maitland with two options: raise the tax rates or continue to cut budgets. With both the mayors of Maitland and Winter Park against raising property taxes, it’s likely they’ll be choosing the latter option.

Maitland Mayor Howard Schieferdecker said he will not vote to increase taxes in fiscal year 2013.

“How much the cities will collect in property taxes will be decided after they go through the budget and gather information on revenues,” Schieferdecker said. “We’re not going to try and raise taxes, but that’s my opinion, and I’m only one vote out of five.”

In Maitland, the tax rate has remained flat for the last three or four years, which Schieferdecker hopes will continue. Including downtown, there are a lot of developments in the area being proposed, but they won’t be in the tax roles for a couple of years.

For more information on the Best Estimate released by Orange County Property Appraiser Bill Donegan, visit ocpafl.org

“These changes in taxes means it’s tougher for our cities to provide the things that citizens need,” Schieferdecker said. “We’re asking all of our departments to reduce their budgets.”

Winter Park Mayor Ken Bradley is taking a similar stance on the issue, but believes that the market is finally looking up.

“My initial reaction is it appears we probably have reached the bottom of the economic downturn, and I would say this is actually very, very good news,” Bradley said. “The Winter Park brand has fared much better than the rest of the region.”

Bradley plans to continue to be cautious with the city budget.

“We’re just going to have to continue to do more with a little less, which we’ve done quite well in the past.”

While both cities will have to keep a close eye on their budgets, they can look forward to a rebound in the real estate market.

Stephen Baker, chairman of the board of the Orlando Regional Realtors Association, said he’s seen recent growth and expects it to continue.

“I’m not surprised to see new construction making somewhat of a comeback because we have such a low resale inventory right now,” Baker said. “Because of that low inventory, that makes it more appealing to start building again — it creates more of a demand.”

That demand will carry into new construction, and Baker also believes homeowners who were previously holding out will begin to put their homes back on the market. With the resale market beginning to stabilize, Baker predicts the market will see some definite growth.

“I don’t expect to see the overwhelming market that we saw in 2004, but this is a steady market that we’re looking at right now,” Baker said.