📉 Tax rate lowered, but bills rise with property values
🌳 Connector road through Point Washington Forest defunded
💰 Commissioners split over debt, reserves, and future taxes
DEFUNIAK SPRINGS — The Walton County Board of County Commissioners voted Monday night to lower the property tax rate and shave millions off the county’s $328 million FY26 budget, after the council was divided over debt reserves and long-term fiscal planning.
Yet, expect to pay more starting Oct. 1, due to a rise in property tax rates in Walton County.
The board approved a countywide millage rate of 3.519 mills, a decrease from last year’s 3.575 mills. The rate is still 3.22% higher than the rollback rate of 3.4337, which would have generated the same revenue as the prior year.
The final budget totals $327,945,088, including $1.34 million for the North Walton Mosquito Control District.
County CFO Melissa Thomason said the $2.5 million revenue cut would be offset without reducing services. She cited $2 million in unanticipated interest earnings, $400,000 in auction receipts, $50,000 in excess state payments instead of taxes, and $65,000 from the sale of property in Mossy Head.
Together, Thomason said those items provided enough to cover the gap and keep the budget balanced.
Thomason also explained minor adjustments, such as changing employee pay increases to a 3.25% cost-of-living adjustment and a 1.75% step increase for non-exempt workers, due to limitations in the county’s HR software system.
She also confirmed that Walton County Emergency Management would repurpose generator replacement funds to pay for a new mitigation coordinator.
Commissioner Dan Curry pressed for a larger rollback, proposing a rate of 3.5071 mills, closer to Commissioner Brad Drake’s target of 3.5. Curry argued that the county was wasting taxpayer money on debt service, noting Walton County has paid nearly $8 million in interest on a loan that still carries a balance of more than $10.7 million.
“My option would be to lower and get it almost to Commissioner Drake’s 3.50,” Curry said. “We pay $2.1 million a year on that loan, and when it’s all said and done, we’ll have paid close to $12 million in interest.”
Curry also called for reverting $797,000 in unspent funds from the Walton County Economic Development Alliance (EDA) and questioned $20 million set aside for a future transfer station, suggesting that half of that money could be used to eliminate debt.
Commissioner Danny Glidewell pushed back, warning that early repayment was fiscally irresponsible.
“We’re paying 2.1 percent interest on one loan and about 3.5 percent on the other, while we’re earning more than 5 percent on reserves,” he said. “You’re basically costing the county one and a half to 2 percent.”
Glidewell also cited the need to maintain reserves for disasters, recalling that Bay County had to borrow $300 million after Hurricane Michael.
Chairman Donna Johns sided with Glidewell, saying she had hoped to use the transfer station money for a senior center in District 4 and warned that state legislation, including Senate Bill 180, and a proposed constitutional amendment to abolish property taxes could destabilize county revenues.
“At this point, I just don’t think that it’s a good idea to roll that back,” Johns said.
Commissioner Tony Anderson agreed, predicting that voters would pass the 2026 amendment to eliminate property taxes, forcing counties to rely on higher sales taxes.
“It’s going to pass pretty much with 80%,” Anderson predicted. “The only way they can do it is by raising the sales tax to about 12 to 15% on the dollar.”
Commissioner Brad Drake argued for a steeper rollback and voted against the final rate. He stated that the county collected $17 million more this year than last year and should return a greater portion of it to taxpayers.
“That money belongs to the people that paid it, not us,” Drake said.
He accused the county of “justifying spending more money” on infrastructure despite an earlier referendum in which 80% of voters rejected a sales tax increase for road projects.
During the public hearing portion of the meeting, residents urged the board to cut $350,000 earmarked for a study of a connector road through Point Washington State Forest, saying state and federal agencies had already signaled the project would never be approved.
“They are not going to allow a road through the largest tract of conservation land in South Walton,” one resident said.
Another resident added that public opposition had outnumbered support “sometimes 200 to one” at forums, while more than $1 million had already been spent on consultants.
Commissioners voted to remove the funding, reducing the budget to $327.9 million.
The budget resolution passed 3–2, with Drake and Curry voting no.
Glidewell defended the outcome, saying the county had already cut more than $3.5 million, about 10% of the discretionary budget, and reduced millage three of the last four years.
We have got to start running government like it’s supposed to be run,” Glidewell said. “That means doing it in a timely fashion and having serious proposals.
Johns praised county staff for balancing reductions while funding capital projects and constitutional offices.
“I think that this is our duty to do this this year,” Johns said. “Maybe next year we can do better.”
Pro Communi Bono
St. Francis De Sales, Ora Pro Nobis!
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