SCOTT RANDOLPH INDEPENDENTLY ELECTED TO SERVE ONLY YOU
HOW ARE OUR SERVICES DELIVERED? (CALENDAR YEAR 2012)
• Inperson at 9 locations countywide: 727,681 • 6 of 9 offices have queue systems: • Apopka:
65,761
• West Colonial:
141,868
• South OBT:
95,082
• Alafaya/Colonial:
78,591
• Winter Garden:
69,554
• Lee Vista:
83,148
• 3 of 9 offices do not have queue, estimate based on non‐duplicate transactions: • Downtown:
82,072
• Winter Park/ Clarcona:
90,745
• Business Tax Department:
20,860
Thus, INPERSON, we serve 80.5% of the adult population in Orange County EVERY SINGLE YEAR. INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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HOW ARE OUR SERVICES DELIVERED? (CALENDAR YEAR 2012)
That’s just who we see in person… • OnLine Transactions:
244,942
• Tags and License: 223,592 • Property Taxes: 21,350
• InHouse Mail Processing: • Property Tax: • Auto Tags: • Business Tax:
344,446
170,317 141,739 32,390
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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HOW ARE OUR SERVICES DELIVERED? During the recession, Orange County population grew by 23,151 between 2010 and 2011… Using same proportion of adult/children and percent that we serve in person, we have an additional 15,000 citizens coming into our office every year.
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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WHERE DO OUR FEES COME FROM? (FY 2011/12)
• Tag & Title (Auto & Boat), Misc., Hunting & Fishing Lic.:
$ 4,288,808
• Handicap Parking Permits are Free. • Also collected $147,555 in Retained Vessel fees for BOCC. • Also collected $11,414,594 in sales tax for State of Florida.
• Driver’s License Issuance and Renewal:
$ 1,615,531
• Business Tax Receipts:
$ 863,233
• Misc.:
$ 120,084
• Property Taxes (FY 2011/12):
$25,603,262
• Orange County General Fund Portion: • Orange County Special Districts: • Other Taxing Authorities:
$20,616,975 $3,706,166 $1,280,121
• Delinquent Property Tax Fees (FY 2011/12):
$ 2,685,882
$35,176,800 INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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WHERE DO OUR FEES COME FROM? (FY 2011/12)
8 out of 63 Taxing Authorities Receive Unused Fees in FY 2011/12 Orange County
$18,696,817.43
Orlando Public Library Board
$ 293,433.75
South Florida Water Management District $ 186,870.38 St. John’s Water Management District
$ 148,352.97
Downtown Improvement District
$ 19,812.29
Ranger Drainage
$ 6,724.32
Valencia Water Control District
$ 2,651.65
Health Central
$ 0.47
Orange County received 96.6% of all Unused Fee Distributions
But other entities still received $657,845.83 ! INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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AT WHAT COST ARE OUR SERVICES DELIVERED? For budgeting purposes, the Orange County 2011/12 Budget puts the OC Tax Collector budget at $23,661,099.
BUT THAT IS NOT OUR ACTUAL OPERATING BUDGET… That represents the statutory fees—of which the OC Tax Collector’s office has no control—paid by Orange County for the portion of property tax collections for: Orange County General Fund, Capital Projects Fund, Parks Fund, Orange County Public Schools, and Unincorporated Orange County.
Our actual FY 2011/12 Operating Cost was $15,822,140.
$18,696,817.43 in Unused Fees to the County in 2011/12.
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AT WHAT COST ARE OUR SERVICES DELIVERED? Even performing all the other services we provide to Orange County citizens—driver’s license, tag renewals, title work, business tax, etc… We sent out tax bills, collected, disbursed, tracked down bad checks, performed tax certificate sales for Orange County and 62 other taxing authorities for a cost to Orange County of: Orange County portion of fees (Actual): Returned Excess Fees: Total Cost to Orange County:
$24,323,141 ‐$18,696,817 $5,626,424
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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AT WHAT COST ARE OUR SERVICES DELIVERED? That Means for FY 2011/12 the Orange County Tax Collector….
Collected $589,168,651 for the direct benefit of Orange County Government… • $589,168,651 is the total for the General Fund, Parks & Recreation, Capital Projects, the MSTU, the UTD, County Fire and all county special districts. • This number does not include $711,141,067 collected for the OCPS that Orange County is statutorily required to pay. • This number does not include the other taxing authorities that pay fees. Municipalities DO NOT pay any fees for the collection of their property taxes.
At a cost to the County of $5,626,424 Thus…
Orange County received 99.05% of all the property taxes collected for its direct benefit. INDEPENDENTLY ELECTED TO SERVE ONLY YOU 9
AT WHAT COST ARE OUR SERVICES DELIVERED? To Put that in Graphical Terms…
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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UNUSED FEES REMITTED IN LAST DECADE Total Unused Fees
To BOCC Only
To Other Entities
Fiscal Year 99/00
$12,779,313.00
$12,194,015.62
$585,297.38
Fiscal Year 00/01
$13,179,582.00
$12,624,812.02
$554,769.98
Fiscal Year 01/02
$13,849,660.00
$13,253,002.74
$596,657.26
Fiscal Year 02/03
$13,356,222.00
$12,765,924.57
$590,297.43
Fiscal Year 03/04
$14,226,460.00
$13,593,039.75
$633,420.25
Fiscal Year 04/05
$15,592,251.00
$14,893,566.88
$698,684.12
Fiscal Year 05/06
$18,277,119.00
$17,473,500.83
$803,618.17
Fiscal Year 06/07
$22,707,007.00
$21,681,677.17
$1,025,329.83
Fiscal Year 07/08
$25,044,870.71
$23,971,276.46
$1,073,594.25
Fiscal Year 08/09
$25,602,065.97
$24,491,360.06
$1,110,705.91
Fiscal Year 09/10
$22,085,031.86
$21,173,405.59
$911,626.27
Fiscal Year 10/11
$19,122,055.87
$18,347,396.29
$774,659.58
Fiscal Year 11/12
$19,354,663.26
$18,696,817.43
$657,845.83
$235,176,301.67
$225,159,795.41
$10,016,506.26
Totals 1999-2012:
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HOW DO WE COMPARE?
9.34%
TOTAL PERCENT CHANGE 20022012 Orange County:
60.32%
OC Tax Collector:
35.21%
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HOW DO WE COMPARE?
TOTAL PERCENT CHANGE 20022012 Orange County:
60.32%
OC Tax Collector:
35.21%
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Average ($24.76)
Orange County Tax Collector was…
Median ($23.63)
36% Below the Average of other Tax Collectors 33% Below the Median of other Tax Collectors
Source: Florida Department of Revenue
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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Average ($25.05)
Orange County Tax Collector was…
Median ($24.53)
39% Below the Average of other Tax Collectors 37.5% Below the Median of other Tax Collectors
Source: Florida Department of Revenue
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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Average ($25.05)
Orange County Tax Collector was…
Median ($24.27)
39% Below the Average of other Tax Collectors 37% Below the Median of other Tax Collectors
Source: Florida Department of Revenue
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE ORANGE COUNTY TAX COLLECTOR’S OFFICE… 1. Loss of all Government Issued Photo IDs: Drivers’ License Issuance, Renewals, Photo IDs, CDLs, HazMat, etc. 2. Large Increase of Cost to Citizens. 3. Loss of Financial Checks & Balances; Internal Controls and Increase in Fraud Potential. 4. Loss of Property Tax Revenue to Taxing Authorities Other Than the County. 5. Unused Fee and Budget Manipulation. INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 1. Elimination of DMV Offices for all Driver’s License Functions
Florida Statute 322.135 (SB 2160, 2011 Session) states: (5) “All driver’s license issuance services shall be assumed by the tax collectors who are constitutional officers under s. 1(d), Art. VIII of the State Constitution by June 30, 2015. “ (7) “The department may create exceptions by rule for tax collectors who cannot provide full driver’s license services due to the small population in the tax collector’s county.” 18
THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 1. Elimination of DMV Offices for all Driver’s License Functions Florida Statute 322.135 (SB 2160, 2011 Session)
Goal of the State of Florida? Cost Savings to the State — pushes cost of issuing driver’s license off the state budget and onto other government entities. Issuance Costs More Than Allowed Recouped Fees — Real ID issues, written exam, road tests all push the transaction time high.
Staff Analysis of SB 2160 states that statewide: “Tax collectors would receive an additional $5,755,177 in fees (using 2010 numbers) that otherwise currently go to the State…” “But even with the loss of $5.7 million in fees, the effect will give the State a
net savings estimated at $16 million per year when fully implemented.”
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Elimination of DMV Offices for all Driver’s License Functions Florida Statute 322.135 (SB 2160, 2011 Session) Current Status of OC Tax Collector Assuming DMV Functions Clarcona Ocoee Location • Renovation will be completed by April 2013. • OCTC has already taken over all driver’s license issuance functions at this location, including road tests. Downtown Courthouse Location •1 of 2 locations still currently operated by DMV. •Does mostly driver’s license suspension/revocation work. •OCTC recently submitted Budget Amendment to take over office; awaiting response from DOR. OCTC would like to take over by July 1st at latest. •OCTC operating this office would recapture approximately $800,000 in fees currently going to state, and should redirect a net excess fees of $400,000 annually to Orange County government. Alafaya DMV Office •Only DMV office that will be operating in Orange County by mid‐2013. •DMV lease ends October 2014 and that will be the end of any and all DMV 20 offices in Orange County.
THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 1. Elimination of DMV Offices for all Driver’s License Functions Florida Statute 322.135 (SB 2160, 2011 Session)
Driver’s License and Other ID’s Issued in Orange County (January – December 2012) (OCTC + DMV)
New Driver’s Licenses: Driver’s License Renewals: Government IDs: DL Reissuance after Suspension: Temporary DL Permits: NonCitizen Driving Permits: TOTAL IDs:
38,571 179,068 40,124 68,381 19,656 24,603 335,689
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 1. Elimination of DMV Offices for all Driver’s License Functions Florida Statute 322.135 (SB 2160, 2011 Session)
The Impact of Losing the Driver’s License Functions in Orange County •
Loss of all Government Issued Photo IDs: Driver’s License Issuance, Renewals, Photo IDs, CDLs, HazMat, etc. • •
Regular driver’s licenses are important to people’s livelihoods, but CDLs have critical, direct impact on a person’s job. Firefighters and other first responders depend on getting the HazMat certification.
•
Orange County residents will have to leave Orange County to get any of these IDs.
•
Immediately lose approximately $400,000 in excess fees from the Courthouse location that OCTC is taking over in summer 2013 that would otherwise go to the County in unused fees. INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… The Impact of Losing the Driver’s License Functions in Orange County •
Angry neighboring counties that have to bear the burden of our citizens travelling to their county.
•
Orange County citizens who have their licenses revoked/suspended would have to travel outside of Orange County to have them reinstated.
•
Potential disenfranchisement of thousands of voters who may not be able to get proper ID to vote.
Per statute, no Elected or Appointed CHARTER Tax Collector can perform these duties. INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… But surely the DMV would return to operate DL functions in Orange County??? 1. The intent of the state legislation was clearly a cost saving technique‐‐$16 million per year. 2. The DMV would have to request an ongoing annual budget increase to operate Orange County offices. 3. Orange County would be at the mercy of the state every year as to whether they would fund the DMV in Orange County and at what level. 4. Service levels of the DMV would never be guaranteed. How many times have we seen DMVs in other states manipulate the ability to get a photo ID during election years?
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 2. Threat of Large Increase of Costs to Orange County Citizens… Coupled with Less Services •
In the 3 counties with appointed Tax Collectors, the county commission has privatized the auto tag/title offices.
•
These private companies are allowed to tack on additional fees set by the county commission that go to the profit of the company—not the benefit of the county in unused fees or to offset other tax collection costs.
•
At the same time, there are fewer offices per capita in these counties and long wait times.
•
In Miami/Dade, the Tax Collector’s office isn’t open every day of the week and their budget was cut 25% last year alone.
See Rick Gardner letter, who served as the Miami/Dade appointed tax collector for 7 ½ years (19962004)
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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EFFECT OF PRIVATIZING TAG/TITLE
Additional Costs to Orange County Citizens Broward
Volusia
Miami/Dade
Transactions
Issuance Tag/Regis.
$3.00
$2.19
$5.00
837743
Title
12.00
9.83
18.00
303614
Lien Application
3.00
2.00
18.00
227711
Lien Notice
2.50
2.00
5.00
227711
Temp. Tags
3.00
2.19
5.00
83774
Verification
2.50
2.00
4.00
303614
Parking Permit
2.00
2.00
3.00
19872
Fast Title
20.00
5.11
10.00
30361
VIN Verification
2.50
2.00
8.00
303614
$9,825,369
$7,322,837
$19,316,578
TOTAL COST
Using the transaction totals from Orange County in 2012 (some would have multiple fees to one typical transaction), these are the additional costs that Orange County citizens would pay in fees to a privatized tag/title company…
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 3. Loss of Financial Checks and Balances; Internal Controls and Increase in Fraud Potential. • •
•
•
Disbursements to Orange County go to the Comptroller’s Office. The Comptroller then handles all disbursements for the County. Basic financial auditing would never recommend having the same employees/managers oversee the collection of money as well as the disbursement of money. Moving the collection of taxes under the Comptroller would not save money, and instead, most likely increase the cost of collection and disbursement as more personnel and technology firewalls would have to be put in place. Moving the collection of taxes under a County department would not save money and now you would have one entity controlling the collection process and efficiency for 63 taxing authorities. INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 3. Loss of Financial Checks and Balances; Internal Controls and Increase in Fraud Potential. An independently elected Tax Collector… • •
•
Provides the financial check and balance for the interests of 63 taxing authorities and revenue from other services; Provides better and more efficient internal controls for the collection of nearly $1.6 billion in property taxes for 63 taxing authorities (plus hundreds of millions from our other services), and Reduces the likelihood of fraud.
…And does it cheaper than it would cost under the County or the Comptroller (because of the needs of the extra levels of separation of duties/firewalls needed when consolidating functions and personnel).
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 4. Loss of Property Tax Revenue to Taxing Authorities Other Than the County. •
ONLY 37% of all property taxes the OCTC collects is for the direct benefit of Orange County Government. •
•
$589,168,651 of $1,575,090327 collected in FY 2011/12.
Putting an Orange County department in legal control of all property tax collection for the other 62 taxing authorities and Orange County Public Schools would make them subservient to Orange County—they would lose legal authority to challenge the decisions of this department.
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 4. Loss of Property Tax Revenue to Taxing Authorities Other Than the County. Orange County would have the legal authority to… • Abate property taxes in bankruptcy cases when other taxing authorities opposed the action because they would lose millions in tax revenue. • Negotiate to settle back property taxes for less than what is owed, even when other taxing authorities oppose the move because they lose millions in tax revenue.
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… 5. Unused Fee and Budget Manipulation •
Orange County government receives approximately 95% of Unused Fees (10 year average).
•
Other taxing authorities received $650,000 last year and will most likely go back to the pre‐recession totals of around $1,000,000 in the next few years.
•
If the OCTC were an Orange County department, there would be a tendency to budget in a manner that showed no unused fees, thereby finding a quick $1,000,000 under the budget.
•
It would be difficult for these other entities to even challenge the amount—if any were even given at all—of unused fees because so many additional costs could be saddled onto that department.
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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THE DANGERS OF ELIMINATING THE OC TAX COLLECTOR’S OFFICE… The Legislature recognizes these potential dangers and continues to put a great emphasis on the Independence of the Tax Collector’s office and duties. 197.603 Declaration of legislative findings and intent. – The Legislature finds that the state has a strong interest in ensuring due process and public confidence in a uniform, fair, efficient and accountable collection of property taxes by county tax collectors. Therefore, tax collections shall be supervised b the Department of Revenue pursuant to s. 195.002(1). The Legislature intends that the property tax collection authorized by this chapter under s. 9(a), Art. VII of the State Constitution be free from the influence or the appearance of influence of the local governments that levy property taxes and receive property taxes revenues. Revised as late as the 2001 legislative session.
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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ALL THE DANGERS WITH NO BENEFITS… The Task Force has focused on the following areas… 1. Finance Departments 2. Personnel Costs 3. Leasing/Operations Costs 4. IT Costs INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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ALL THE DANGERS WITH NO BENEFITS… Finance Departments •
Cannot simply combine employee duties under Comptroller because there would be no protections against fraud and basic auditing standards would state that having same employees collect and disburse such large, complicated monies is not a good practice. • The Florida Constitution prohibits placing pieces of a constitutional office under another office. It requires that ALL the duties be placed under that office.
•
If moving into an Orange County department, Orange County would have to hire at least the same number of personnel at same costs.
•
Under either scenario, costs would most likely increase because of the need for additional IT costs and separation of duties for personnel.
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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ALL THE DANGERS WITH NO BENEFITS… Personnel Costs •
The Tax Collector’s salary ranges are actually lower than Orange County’s.
•
Our fringe benefits are same as Orange County, so no savings there.
•
No data presented to Task Force showing that moving OCTC under Orange County would present opportunity to eliminate positions.
•
Only way to eliminate positions would be to: 1. Privatize Tag Agencies, which would cost Orange County citizens an additional $8 ‐ $19 million in fees that go to bottom line of private company. 2. Close Offices, which would cause burdensome lines and waits for citizens that threaten their jobs and livelihoods.
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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ALL THE DANGERS WITH NO BENEFITS… Leasing/Operations Costs Orange County
Tax Collector
Space Review
Involves multiple departments of budgeting, construction approval, planning and oversight, as well as lease compliance oversight.
OCTC has streamlined who oversees and approves all planning, acquisition and occupancy with logistics carried out by fewer than three staff members.
RESULT:
Additional staff and multiple department involvement.
Smaller staff with single department involvement.
Funding
BCC approval of funding for Tenant Improvements.
Elected OCTC strategically approves planning, leasing and any tenant improvements.
RESULT:
Potential delay and slow process to get on agenda. Politics become Only one person with less political maneuvering for involved. single member districts getting funding.
Property Works through a Leasing Realtor Service. Searches
Independence of office allow direct contact with property owners.
RESULT
Orange County does not pay the LRS a direct commission, but the ultimate Landlord certainly does and it is assumed those costs are incorporated in the Tenant's lease rate.
Savings on commissions, fees and markups on service rendered by Landlord.
Timing
Multiple steps, departments and layers to finalize lease.
Fewer steps to finalize lease.
Multiple steps extend time and market conditions may change.
OCTC can react quickly on any opportunity to maximize rent cost savings or customer service improvements.
RESULT
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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ALL THE DANGERS WITH NO BENEFITS… Leasing/Operations Costs Orange County Admin Bldg. Orange County TC
Janitorial 1.28
Utilities 1.81
1.03
2.34
As the numbers show, it’s tough to compare different office functions: • The County’s janitorial rate is higher because it contracts for services that include a wide range of facilities as compared to the same type of facility for the Tax Collector. • The Tag Agencies’ utility costs are higher because: • Higher density of energy‐hogging computers and printers; • Nearly 1,000,000 people come through the doors. The average human being produces 640 BTUs of heat per hour, so we have to air condition for an extra 640,000,000 BTUs every year just for the heat produced by our customers. • We deal with different utility companies, some with higher rates;
INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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ALL THE DANGERS WITH NO BENEFITS… IT Efficiency •
Orange County Tax Collector’s IT costs are already significantly lower than those of appointed tax collectors.
See Mike James letter. INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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CHARTER APPOINTED/ELECTED VS. CONSTITUTIONAL The Same Dangers Exist Whether Charter Appointed or Charter Elected 1. Loss of all Government Issued Photo IDs: Drivers’ License Issuance, Renewals, Photo IDs, CDLs, HazMat, etc. 2. Large Increase of Cost to Citizens. 3. Loss of Financial Checks & Balances; Internal Controls and Increase in Fraud Potential. 4. Loss of Property Tax Revenue to Taxing Authorities Other Than the County. 5. Unused Fee and Budget Manipulation.
With Zero Benefits to Orange County Taxpayers… INDEPENDENTLY ELECTED TO SERVE ONLY YOU
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QUESTIONS?
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