Okaloosa County Administrator John Hofstad presented a proposed $687 million budget for fiscal year 2025-26 that maintains the county’s property tax rate for the ninth consecutive year while accommodating major economic development and infrastructure growth.
- County Commissioners received the budget proposal during a workshop Tuesday at the Crestview Courthouse. The spending plan represents a $38.7 million increase, or approximately 6 percent, over the current year’s budget.
“For the ninth year in a row, there is no recommended change in the county millage rate of 3.8308,” Hofstad said in his transmittal letter to commissioners. “This continued trend is a focus of County administration.”
The flat millage rate comes despite property values increasing approximately 6 percent countywide, generating an additional $1.77 billion in property values compared to the prior year. The rollback rate is 3.6825 mills, which would generate the same amount of taxes as last year.
- The proposed rate is expected to generate approximately $117 million in total property taxes, with the county budgeting for $112 million based on a 95 percent collection rate. This represents an increase of about $6.5 million compared to the prior year budget.
Hofstad noted that Okaloosa County maintains one of the lowest millage rates in Florida, with an aggregate countywide millage rate below 4 mills – a distinction shared by very few counties. The county also proposes holding the Municipal Service Taxing Unit millage rate at 0.299, which has remained consistent for 12 years.
Hofstad highlighted two major economic development wins that position the county as a key player in the aerospace industry. Williams International, an aerospace manufacturing company, plans a $1 billion investment described as the largest in Northwest Florida’s history. Central Maloney, a transformer manufacturer, selected the Shoal River area for a new $50 million manufacturing facility last year.
- “These investments drew the interest of corporations and have resulted in this area being the selected site for multi-million-dollar commercial development,” Hofstad wrote. “These economic development milestones position Okaloosa County as a key player in the global aerospace industry.”
The budget contemplates adding 26 new positions, bringing the total to 1,125 full-time equivalent employees. About a dozen of these positions are fully or partially funded by the general fund, while the majority are supported by enterprise funds.
“With what we’ve done over the last couple years with acquiring additional properties, acquiring new facilities, it takes the personnel to keep those facilities up,” Hofstad told commissioners during his presentation.
Major capital projects planned for the coming year include continuing work on the Southwest Crestview Bypass, which Hofstad said should be completed sometime next year, with the exception of the Interstate 10 interchange portion which is running about nine to 12 months behind schedule. The county will also advance the Shoal River Ranch Wastewater Plant to accommodate growth in east Crestview and support the new manufacturing facilities.
- Other significant projects include a new District One Medical Examiner facility shared with Santa Rosa, Escambia and Walton counties, a new Public Works facility, and water main replacements throughout the county.
The budget maintains unassigned general fund reserves at $20 million and reflects the county’s strong bond rating as officials prepare to enter the bond market for major capital projects.
Hofstad said the budget process began in February with staff developing initial requests for personnel and capital needs. The proposal will undergo refinement through additional workshops before final adoption in September.
“This budget pushes us to think creatively, act strategically, and invest in solutions that make our programs more sustainable,” Hofstad said.
The county will hold its second budget workshop July 22, followed by public hearings on September 4 in Crestview and September 16 in Shalimar to formally adopt the final budget. During the workshop, Commissioner Trey Goodwin suggested exploring user fees and potentially adopting the MSTU rollback rate to provide some tax relief to unincorporated residents, noting the rollback rate for the MSTU would be 0.2880 mills.
