There was a lot of future discussion that took place at the county level on Tuesday, June 9. But a highlight saw the county address a budget shortfall that could have drastic effects on its overall services to the local community in the next fiscal year. 

The county discussed the realities during its budget workshop.

An estimated $44.5 million deficit is expected for 2027 due to a decrease in revenue and an increase in proposed expenses, Assistant County Manager Troy Nagle said. The proposed budget of more than $196.9 million included expenses for personnel, operating, capital and reserves.

The estimate does not include the proposed impacts from HJR 1-F, passed by the House and Senate on June 2. 

The measure aims to lower homestead property taxes in the state of Florida, putting more money in homeowners' pockets. As Clay Today previously reported, homestead exemptions would increase from $50,000 to $150,000 in Year 1 and to $250,000 in Year 2. After that, further increases would be based on the Consumer Price Index.

If passed with 60% voter approval in the Nov. 3 General Election, Nagle said the measure could reduce ad valorem revenues by as much as $50 million in the county’s 2027 budget and by as much as $60 million a year later.

Specifically, the county could lose $33.2 million in county services, $810,203 in unincorporated services, $2.8 million in fire control and $13.2 million in law enforcement funding. About a 29% loss of the total property tax budget.

That’s money to run libraries and parks, to hire firemen and paramedics, police officers and dispatchers, crews to fix potholes, cut grass, infrastructure projects and building permits.

"We're trying to keep these in today's dollars. So, of course, if values went up, that changes that number. But to keep apples to apples, this is based on now," Nagle said.

Clay would be significantly impacted because it has the highest number of homestead exemptions per capita compared to other counties in Florida.

"The hole will become so deep in Clay County," said Clay County Property Appraiser Tracy Drake said.

"Clay County, as we've all known for years, is a bedroom community. Seventy-five percent of the county's tax base is improved residential. Currently, 71% of that taxable value has a homestead exemption on it."

Drake added that if the proposal passes, 62% of the parcels will pay no tax to the county by Year 2.

How homeowners will specifically be impacted, Drake said, depends on when they homesteaded their property. Those who have had exemptions for a significant number of years have lower taxes than those who've purchased a home in the last five years.

"There's a likely chance that if you've been an existing homestead, you may pay more at the end of this. If you're a newer homestead, you may pay a little less.

"If this passes, somebody that pays low tax could end up paying more fees as a result of what decisions are made through the budget process. Consequences will be different across the state."

It's important to note that the proposal only applies to homestead property. Non homesteaded properties will still be subject to taxes.

"It's not an elimination of property tax, it's a shift essentially," said District 1 Commissioner John Sgromolo.

The county said that commissioners will continue to review the budget in depth and have directed staff to look for ways to reduce overall cost. District 4 Commissioner Betsy Condon said the answer will most likely be found in cuts.

"We don't have $50 million and we're looking at a potential cut of another $50 million," Condon said. "And, so, we can't just go along and say, 'We'll just do what we've always done.' Because we can't."

Later that evening during the board's regular meeting, residents filled the chambers to also discuss another burning topic: the county's proposed data center moratorium.

On May 12, the board initially requested preparation of the ordinance, which would allow for one year of acceptance, review or approval of applications for data center facilities in Clay County, giving staff more time to research and study the potential impacts.

Data center facilities are specifically designed to host IT infrastructure and serve as the backbone of digital operations, enabling cloud computing, e-commerce, financial systems, artificial-intelligence applications and real-time services, according to Quest Technology Management.

In total, Jacksonville has 14 to 16 centers, operated by major providers like Lumen, Verizon and Cologix. Recently, Nassau County also passed its own moratorium for a 1,600-square-foot center for Miami-based company NextNRG.

Recently, they have raised concerns for their environmental and health effects. According to Conimby, data centers used 4% of electricity in 2023, a number that could jump to 6-12% by 2030. Also, a single large data center could need about 5 million gallons of water a day.

Within the county specifically, the facilities could require significant and continuous electric demand, water supply, cooling infrastructure, wastewater capacity and storm water infrastructure. 

Many spoke about the environmental and financial costs the centers could cause residents.

"I don't know about you all, but my electricity bill has gone up quite a bit," said one resident. "My consumption has not changed. And they've talked about how a lot of this is related to how many data centers are out there."

"I advocate my county to use its legal regulatory power to say if you want to build here, you must prove you will not destroy our water, spike our utility rates or keep us in the dark," another said.

Opinions on the board ranged, with District 2 Commissioner Alexandra Compere highlighting the number of jobs the centers could bring to the county, which is facing a 4% unemployment rate.

"I understand that this isn't a popular conversation. But what is invariably the situation here is that we're not just talking about Clay County. Data centers are a national reality," she said.

A second hearing on the matter will take place at the June 23 regular meeting, which will begin at 4 p.m. at the Clay County Administration Building, 477 Houston St.