Okaloosa County Commissioners on Tuesday morning unanimously approved $600,000 in infrastructure surtax funding to cover startup capital costs for a county-run animal control service, as its longtime contract with the Panhandle Animal Welfare Society nears its end.

• The allocation will pay for immediate capital needs as the county builds its own operation. County documents identify animal sheltering facilities as the largest expense, along with vehicles, vehicle kennels, specialty equipment, computers and public safety radios.

Okaloosa has contracted with PAWS for more than 20 years to provide animal control and sheltering for unincorporated areas. The nonprofit’s executive board voted on April 30 to end the contract on Sept. 22 with no extensions. Because providing animal control is a statutory obligation, the county must stand up a replacement. Commissioners approved an “Animal Control Light” model on June 16, limited to statutorily required services, and directed staff to also pursue a solution with the City of Crestview.

Deputy County Administrator Craig Coffey said the county is pursuing a two-part plan divided between the north and south ends. On the north end, the county is working with Crestview, which brought its own animal control in-house.

“I hope to bring you an interlocal potentially at the next meeting,” Coffey said. “That would be a situation where they provide animal control and sheltering services, and we participate on the back end for capital.”

• He said the arrangement would triple Crestview’s capacity. County documents estimate the cost of retrofitting a Crestview building at $750,000 to $1.2 million, with the county as the larger contributor because the city would provide the property.

On the south end, Coffey said, the county is preparing to hire staff directly and is working to either contract for sheltering or build its own facility. Destin, Mary Esther and Fort Walton Beach are all contracting with PAWS through next year.

Coffey said the county made a final offer to PAWS that was declined. He said the county proposed a south-end-only contract at the same $6.25 per capita rate PAWS charges three other cities, plus scheduled increases, two vehicles worth $25,000 each, potential inmate labor, county fuel and an ordinance change reducing the stray holding period from five days to three.

PAWS representatives did not speak at the meeting.

Commissioner Paul Mixon, who moved to approve the funding, said he had received substantial correspondence about the change and wanted to set the record straight.

“It needs to be reminded to folks that they chose to not move forward in business with us,” Mixon said. “They were not fired.” He said the county “went back to them with a good proposal … and it was not entertained.”

Mixon said he supported the Crestview direction. “I think that is a favorable solution for us that’s going to be very cost-effective if Crestview’s willing to continue in discussions,” he said.

Maddox told commissioners the county has scaled back its staffing plan. After advertising for a chief-level position and going through a selection process, he said, negotiations with a candidate and a possible partnership on the south end led staff to reconsider.

• “We realized … that we may not need a chief-level employee over the operation,” Maddox said. “It might land more at a division manager or coordinator type role. … We can always scale up if the situation presents itself.”

Commissioner Carolyn Ketchel said cost remains the central issue and linked the county’s caution to a homestead exemption measure that voters will decide in November.

“The issue for us is cost,” Ketchel said. “We’re all nervous about every aspect of county government because we’re not going to have the money for services that we currently have, let alone beginning new services.”

Coffey agreed the measure could reduce what the county can offer. “It would definitely affect the level of service you’re able to provide,” he said, though the county would still have to provide some service under state law.

Maddox said staff turned to surtax funding because the end of the PAWS contract was “an unfunded, unanticipated liability.”

“We didn’t expect the rug to be pulled out on the contract,” he said. Maddox said drawing on surtax dollars avoids hitting the general fund between September and November, before the financial impact of the tax measure is known. He also said the county has limited its public updates because the plan keeps shifting.

Commissioner Sherri Cox asked whether approving the capital funding would keep the county from expanding animal services later if voters approve a separate surtax that she and Chairman Trey Goodwin have promoted. Coffey said it would not.

He said the surtax money can be spent only on capital: “These funds can only be used for capital, and they cannot be used for operational expenses or anything else.” He said the county can come back to commissioners for more funding, and that the facilities under consideration could handle some enhanced service.

The county attorney has determined that animal control is a public safety service with capital costs allowable under the infrastructure surtax. Coffey said state law lists animal control as a permissible use. The Infrastructure Surtax Advisory Committee recommended the allocation at its July 28 meeting on a 4-1 vote.

Coffey said the plan will come into sharper focus once the county settles terms with Crestview and secures south-end sheltering.

“We’ll be able to come to you with alternate proposals over time once we figure out the money situation,” he said.

Animal control services must be in place by late September.