Category Archives: Government Spending and Taxation

Unintended Consequences

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The EcoGen project slated for Indiantown has been cancelled due to problems with county approvals. I don’t know whether this type of use would be harmful to our environment or not. On the face of it growing eucalyptus trees and then producing electricity with the bio-mass seems to be a good idea. Perhaps the county is correct and this would have been a bad project.  The problem is any economic development proposed seems to be bad. At some point, the majority of residents and business people stop believing the county commission is looking at economic development projects impartially.

How long does the majority on the Martin County Board of Commissioners ignore the wishes of the residents of Indiantown and other un-incorporated areas? If Martin County tries to staunch all new industry, there will be unintended consequences. Those consequences will lead to the very type of harmful growth and urban sprawl that the county commission is against.

It is apparent to me that Martin County is on an unsustainable course. Real estate taxes are close to the maximum millage allowed by statute. Our county’s infrastructure is literally falling apart. Apparently, the county is incapable of enacting common sense budgetary reforms that would lessen the cost of providing governmental services. Without measured sustainable development both in housing and business, Martin County will be in dire financial straits.

Communities from Hobe Sound to Indiantown feel that their desires are not being met by county government. It is impossible for the county commission to adequately represent the diverse interests of the residents of Rio and western Martin County. The majority of the county commissioners are trying to micro manage instead of allowing the people to have a say over their individual communities. The way county government operates is broken and needs to have much more input from the citizens.

Now with the near abandonment of any autonomy to the county CRA districts, the commission is pushing those distinct areas into forming independent cities and towns. I believe that the formation of new municipalities throughout the county will ultimately result in better government at both the county and municipal level. Municipal government will allow more direct representation of the wishes of the electorate. The people of Palm City will determine whether they want industry or not. Residents in Rio will decide whether and what type of housing will be built.

The development within those communities will reflect the will of the people who live within the municipal boundaries. Further, the level of governmental services will only be that which those residents want and are willing to pay to have. This will result in much less county taxes being levied on all Martin taxpayers. For instance living in Stuart, I see the benefit of having a professional fire/rescue department and am willing to pay for that level of service. If I lived in rural Martin County, I would be in favor of having a volunteer fire department and privatization of ambulance service. Different areas within the county have different expectations of levels of service.

County government was originally to be limited in nature and act as an arm of the state providing those services constitutionally mandated. Martin County, through its one size fits all approach to the delivery of traditionally municipal governmental services, has succeeded in becoming an unresponsive and bloated bureaucracy. As the area and scope of services have increased, fewer and fewer residents and taxpayers are happy with the outcome. If the more populated areas of the county incorporate, I can easily see Martin County cutting its workforce and lowering county taxes substantially.

Of course, the new municipalities would now have to levy taxes and provide services. From public works to parks to law enforcement, the type and cost would be determined by those living and paying within the municipalities. If in the next few years Martin County does not have new municipalities formed, county government will be unsustainable since it will no longer be able to raise the millage rate.

At one time in the not too distant past, Martin County was rural with Stuart as a small county seat. This is no longer the case as more and more of the county has become urbanized and suburbanized. What Martin County government has failed to do is adapt to these changes. I agree with the vast majority of county residents that we do not need unfettered growth outside the Urban Services Boundary. However, within that boundary, jobs and development do need to happen.

If you want to preserve Martin County, we will need to think about governing differently. Control over governmental functions in these now urban and suburban unincorporated areas have to be placed in the hands of local residents. There are distinct differences between Hobe Sound, Indiantown and Palm City, and our governing bodies need to reflect this fact. The less the “Big 5” on Monterey control, the better the outcome for all of Martin County including the preservation of the Urban Services Boundary and lessening of sprawl in the remaining unincorporated areas.

The Perpetual Move Of City Hall

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At a recent meeting of the governing boards of Stuart, Martin County and the School District, the majority on each board seriously discussed the building of joint facilities on a shared office campus.  There were several rationales given — we could meet in the halls and have synergy, our current building is 50 years old and approaching the end of its life, and we could save money by combining facilities which would allow the City to free up valuable property for development. What was not expressed was a cogent reason for Stuart to move forward.

It is foolish to think that City Hall can no longer serve our needs because of its age. Could the building use updating? Sure! We need to apply the same reasoning as you would to your own home. You don’t buy a new house because the bathrooms need to be redone. Could the City more efficiently use the space contained in the annex and City Hall? Of course it could. It is manifestly cheaper to reconfigure existing space than to build new space. If you look at it rationally, there is plenty of useful life left in our present City Hall.

So if we don’t need a new building, how do we save money by building one? Where does the $3 or $4 million come from to build? If we did go ahead and commit, the money would have to be borrowed through a bond issuance or a mortgage. Which circles around to the “save money” rationale. How is it less expensive than not building anything?

As to some synergistic relationship between governments, this is wishful thinking at best. (Let’s forget the concept of “Sunshine” for a moment.) All three governments have different needs and missions that do not exactly align. As the fiscally and physically smallest of the three entities, our needs would be subservient to those of the County and School Board.  Recently, the City was tasked with finding a place to hold a fire consolidation meeting. We reached out to the School Board, and they were unable to accommodate us for a variety of reasons. What happens when we are sharing a meeting chamber? Who do you think will be last in line?

A campus with the County and District will erode Stuart’s identity as an independent government. In the future, we will appear, especially to those that do not know our history, to be nothing more than a department within the County. If the County believes consolidation is a good thing, then build a campus and move the Property Appraiser and Tax Collector to a new centralized location.

Finally, we come to the last argument for moving City Hall, which is economic development of the current site. For anyone to think that some magical mystery hotel developer will appear and build a boutique luxury hotel on this current site without subsidies and tax breaks is dreaming or naïve. Even if that appearance occurs, the proposition would still need to go to referendum of our voters where it would most certainly fail. With all that said, I am not against ever moving City Hall.

Here is what I believe needs to occur for this to happen. First we need a plan. The plan needs to not only deal with City Hall but also the entire Flagler Park, historic downtown, Ocean Blvd and Colorado Avenue area. The plan will encompass opening up new or extended streets. There will be new building lots potentially along those extensions. I believe that City Hall’s current site should become part of Flagler Park.  It should not be sold or leased for commercial reasons. The downtown waterfront needs to be maintained for the people.

Within the plan there has to be a source to allow the City funds to pay for a new building. This can be accomplished by the ground lease or sale of the new building lots created along with the increased property tax revenue that will be generated. Any financing and debt service needs to be paid by this new source of revenue. If we do build a new City Hall, then the location must be in a place that will spur economic development for all of Stuart.

We need to forget dreams and fantasies and concentrate on development that can actually occur. What really would be synergistic is our residents and businesses coming together to think about what we can actually achieve while maintaining the true nature and character of Stuart.

 

 

 

 

 

Fire Consolidation: Good Only For Pols & Consultants!

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On Tuesday, the County Commission appointed two members, Sarah Heard and Ed Fielding, to a proposed Fire Consolidation Committee. Next Tuesday the Stuart City Commission will discuss whether we should do the same. I believe the City Commission should only move forward, if a consolidation is in the interest of Stuart. After examining all the data, I am of the opinion we should not move forward.

Have you ever heard the phrase “Numbers don’t lie?” That may be true, but the outcome you want to obtain can be determined by the numbers used. I am sure you have also heard the phrase “garbage in…garbage out.” This is what happened to the Fire Consolidation Study. The consultants, at least in Stuart’s case, did not bother to speak with our Finance Department. Rather they chose to use numbers that would support their conclusion that a consolidated district is possible.

From the first time I spoke to Fitch and raised doubts with certain of their assumptions, I was told that they would go back and investigate my concerns. It doesn’t appear to me that the consultants did do that. I suspect Fitch probably didn’t do so for any other questions that others had either. The result was a flawed study based on inaccurate data.

Most citizens think that Stuart pays for government through ad valorem taxes also known as real estate taxes. In actuality those taxes comprise roughly 27% (about $6.6 million dollars) of total City revenue of $23.6 million dollars. The balance collected comes from other taxes, revenue sharing, fees and other sources. Public Safety has a budget of approximately $12 million dollars with a little over $5 million being spent on Fire/Rescue. Stuart uses all sources of revenue to pay for general services that are provided. The consultant’s report intonated that the City only used the Fire Fee and real estate taxes to pay for Fire/Rescue. By backing into their numbers, they assigned 1.838 mills for fire and assumed that Stuart could cut their millage by that amount if consolidation occurs.

The County pays for Fire/Rescue strictly through a MSTU with a millage rate of 2.5263. The entire millage for Stuart is 4.5520. Martin County’s current Fire/Rescue alone is 55% of the City’s total millage rate. The consultant did not take into account Stuart’s ability to have different funding sources pay for fire service. So when calculating proposed savings to the City the consultant relied on real estate taxes and the fire fee only to pay for Fire/Rescue. They did not count any money we collect for providing service to Sewall’s Point, insurance reimbursement or other related income in allocating funds to pay for SFD. Fitch just reallocated those collections to the new entity but never deducted the amount from our total expenses to provide Fire/Rescue services.

In calculating what Fire/Rescue costs an “average” home owner in the City, the consultant used an average taxable value of $150,510.00 which is the County’s average, instead of the actual City average of $124,567.  While a Stuart condo owner has an average taxable value of $51,677. This substantially alters what the average Stuart homeowner pays for Fire Service from their price of $424 per homeowner to $360. Fitch stated in their report that the average County homeowner pays $365.

65% of our residents pay only the Fire Fee. The new district will have the same fee for everyone county wide. Therefore the vast majority of Stuart’s residential taxpayers will see no difference in their tax bill, unless the proposed new district increases the amount of the fee, which they could. What Stuart taxpayers are guaranteed to experience is a reduction in response times as outlined in the report. Still using the consultant’s numbers here is what elimination of the SFD means financially to the City:

Cost of SFD without administrative costs               $5,010,143

Fire Assessment                                                    ($1,009,857)

Fire Related Revenue                                            ($1,523,750)

Ad Valorem of 1.838                                               ($2,849,286)

City of Stuart loses                                                 ($  372,750)

To make matters worse, the City actually collected $125,000 more in the Fire Fee than the consultant claimed. This would leave a hole in our budget of $500,000. This means that Stuart could not reduce the real estate tax as much as the consultant states in his report. The City would be able to cut 1.3 to 1.4 mills. In a consolidated district the consultant has the millage at 1.4 plus the fire fee. At best the average taxpayer in the City would pay the same but loose having its own home department.

What the numbers do not show is any administrative expense. There are no costs for payroll, finance, human resources, public records or legal. They claim that through consolidated savings, administrative expenses would all be covered. The duplication of a fire chief and a few battalion chiefs won’t cover that expense. The St. Lucie County district spends about $1 million dollar on these personnel costs per year.  Any further savings to our consolidated district would come through reduction in personnel, stations and equipment. The consultant’s report does not even begin to address equipment and stations that need to be transferred and paid for somehow by the new entity.

You may hear that the City will save or the County will save with a new district. Just remember that you, the taxpayer, still pay all the bills regardless of which entity receives the money. Martin County has almost reached the limit that it can increase millage. If the County can succeed in having another district bill Fire/Rescue use then it can remove more than 2.5 mills from their current tax millage. This will allow the County to have more room to increase taxes in general. It is all smoke and mirrors. Stuart and all Martin County taxpayers ultimately receive no break; they will have one more governmental entity….one more line on their tax bill…and less control.

Even in the Fitch study, one of the findings was that stakeholders believed that they were receiving high quality service that are meeting or exceeding expectations. Another of the findings was that stakeholders have a common expectation that current performance should either be maintained or improved. For Stuart taxpayers, businesses and residents consolidation adds response times and looks to ultimately close our station on Martin Luther King, which the City is still paying a bond to construct. This is not in the interest of any of us including Stuart Fire employees, who are also stakeholders.

Another finding of the study was that overall risk is predominantly located in and around the urban areas on the eastern side of the county. That is the definition of the City of Stuart. That’s not where you should be closing stations and reducing response time. When you are having a heart attack (study states 78% of the calls are for medical emergency) do you want to wait another minute or so before help arrives? What happens when you have a fire downtown and the tracks are blocked by an All Aboard train? The closest station on that side of the track will be at Salerno Road. Will we lose all of downtown or have more damage than would have occurred, if the station had remained open on MLK?

Less service, more money and a giant department that is less accountable to the citizens. I am not voting for this. This is an idea that needs to go away. It may be a politician’s dream but not yours.

Déjà Vu…City Hall And The Past, Present And Future!

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The staff and City Commission of Stuart are very accommodating to our residents and businesses. That is an excellent characteristic to have. Residents and businesses want to see us go out of our way to help solve problems and accomplish objectives. I like that we are able to go the extra mile and not throw obstacles in the way of responsible change and development.

That is one way where we differ from our counterparts at Martin County. Perhaps because of our smaller size, we can be more trusting than they can.  It is easier to form relationships and know the individuals. I like the atmosphere that our City Hall engenders. I think that, because of our size, even someone who is new to Stuart knows instinctively that there will not be unnecessary impediments placed in his/her way.

There are some individuals at both the County and City that want us to consolidate our administrative functions on one campus. They tout the benefits of us joining forces with the County and Martin County School Board and how economics of scale will save money. What I see is the erosion of our independence. By becoming a cog in the wheel, I see Stuart losing our small town way of doing business. After a while, the perception will be that Stuart is another department within the county structure instead of an independent municipality.

Although some would argue that there is an advantage and savings to consolidation of administrative facilities, I would not. Anything that lessens our independence will only harm us in the long run. No matter how collegial a county commission or school board is at any given moment, it could change at the next election. Even if the agreement between the parties spells out every contingency, there will always be room for disagreement. Do we want to continuously argue with entities that are so much bigger and have larger budgets than we do? We have had inter-local agreements in the past that Martin County has ignored such as Willoughby Extension.

Stuart could always find ways to save money. The ultimate savings would be by un-incorporating. We wouldn’t need a city hall then. We could be like Rio, Jensen Beach or Indiantown without self-governance… without a say. Try calling a county commissioner when you have a problem and see how fast you get a response. The more local government and home rule available to citizens, the better for all of us.

This big rush to decide on proceeding with administrative consolidation is because the Martin County School District must design a new administrative building and build immediately at the High School Avenue campus. Time is ticking and supposed decisions must be made in a hurry. I see Stuart under no such time constraints.  Even if we needed a new building immediately, how do we pay for it?  What do we do with the present City Hall?

Some would say we can either borrow short term or bond the $3 million dollars needed to build this new building. Once we develop or sell the old City Hall site, we could pay off the bond or mortgage (let’s assume by some miracle a referendum allowing sale or lease passes.) As a commissioner, I would not vote to move forward with this project. I do not believe we should become part of any consolidated campus site irrespective of costs and financing. Even if a mystical-magical phantasmagorical hotel developer appeared tomorrow, I would not be in favor of selling our present City Hall.

Does that mean we should never move City Hall? No it does not! I want to see Stuart have an integrated plan for the entire downtown area consisting of the “Old Downtown Area”, Flagler Park area, Colorado Avenue and Ocean Blvd. The plan should include the eventual building of a municipal garage. There are ways to reconfigure streetscapes that would foster development of new building sites. The sale or lease of those sites by the City could allow for the money to build a new City Hall. Where the present City Hall is located would be part of an expanded Flagler Park and access to the water would be maintained for all the people.

I believe in good relations with all the governmental entities in Martin County. I do not believe in perceiving to be or actually being a department of any other government. Stuart’s government has a different culture than Martin County’s government. We relish in our small town atmosphere. We like our quaintness and “Old Florida” panache. This is what we need to promote as we grow. We do not need to turn into another generic South Florida town.

I am not about to vote in favor of spending your money to promote the dreams of others. Any change must further the City, its residents and taxpayers.

 

Does It Matter?

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At Monday’s CRA Meeting I was the only board member who voted against extending the “Paint Up Program”. The program using TIF funds gives grants to individual homeowners and businesses to paint the outside of their properties within the CRA. The last time this came before the board, I did vote for it. I thought it was a good program and in many ways it is a good program. Upon further reflection this program came into conflict with my philosophy of using public funds to subsidize work to improve private property.

This program does comply with all applicable laws and regulations governing CRA’s in Florida. My objection is not the legality of the program but the philosophy behind it. I know that to governments $17,000 is not even a drop in a bucket. The amount is not what is critical. it is whether public funds should be used to a enhance private party. There is a noble goal attached to the project but the principle is much more important.

Will the funds being spent in this way add to the value of the property thereby increasing the amount of tax that is being collected? Maybe…and that is the reason CRA’s are created to end blight and ultimately increase tax collection. This program is open to anyone regardless of income. Would I feel differently if there were income limits? Perhaps…But should I?

A noble purpose for having a program does not in itself make the program acceptable (the ends justify the means.) Since I believe that public funds should not be used to enhance private property then logically I could not support this program. If the funds had been used for street paving or sidewalks, I would have no problem.

Does that mean in the future I will always uphold that principle? I hope so. However, as I admitted, I did vote for the project in the past. To some this may seem like a small matter. if you believe something is right, you should uphold it. I promise to try and do just that in the future.

Stuart Lawsuits Won’t Clean Our River

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I live on the Saint Lucie River in Stuart. I see the devastation that the release of water from Lake Okeechobee brings literally to my backyard. I hate it! As a Stuart City Commissioner, I lobby our representatives in Tallahassee and Washington to clean up the mess that is the Saint Lucie River and the Indian River Lagoon.

In the Stuart News, a guest column appeared by Mac Stuckey, a Martin County resident. He demands that the City of Stuart hire an environmental attorney and staff to file complaints, make noise and I presume to commence lawsuits against Florida, Washington and anyone else that has some blame. He mentions that we would do so because of Stuart’s police powers to pass ordinances for the welfare of our citizens. Under that authority, the city has passed ordinances to limit the use of septic systems and fertilizer. Mr. Stuckey states that this will not even make a dent. He is largely correct. I agree with him because the Indian River Lagoon and the St. Lucie River comprises hundreds of miles of shore line, and Stuart only has approximately 2 miles bordering these waterways.

On the Treasure Coast alone, there are 13 municipalities and 4 counties which border the Lagoon, River and Lake. The Lagoon itself is a much larger area including, but not limited to, Volusia and Brevard counties, and I don’t know how many cities and towns. What I don’t understand is why Mr. Stuckey believes that Stuart, with 16,000 residents, should spend $500,000 of our taxpayers’ dollars to hire staff to commence law suits, etc., when the problem is much bigger than just our one small community.

Stuart is proud of its environmental record such as completing our 15 year BMAP in the first year. Just last week, the commission passed a resolution supporting a compact formed by the League of Treasure Coast Cities, The League of Sun Coast Cities and League of Space Coast Cities to lobby for these very things mentioned by Mr. Stuckey in Tallahassee and Washington. We also support Martin County’s (Stuart is part of the county and our residents pay county taxes) participation and leadership in the Indian River Lagoon Council.

The tactics that the article promotes will not accomplish anything except be a burden to Stuart’s taxpayers. It is much more practical to work with organizations like the River Coalition, which meets in Stuart’s chamber, to achieve progress. Not being an attorney, my first reaction is not to begin expensive and fruitless litigation. I prefer working with other governmental entities and private groups to further a solution.

The people can vote against their current state and federal representatives in the upcoming elections if they are not satisfied with their performance in this matter. This problem did not occur overnight and will not be solved in a day. A constant amount of political pressure must be applied at all levels of government to achieve those goals outlined in Mr. Stuckey’s guest editorial. While Lake Okeechobee releases are a significant problem for Stuart, litigating with the United States and Florida governments would only lead to tax hikes for our residents and businesses.

Since 1956 the year that Mr. Stuckey came here, Stuart has not grown much in population or land mass as compared to other cities on the Treasure Coast. The City of Port Saint Lucie, which today is the 9th largest city in Florida with over 170,000 in population, did not exist. Fort Pierce is on the Indian River Lagoon and has three times our population. The City of Stuart’s median income is $24,000. What Mr. Stuckey proposes would be close to spending 5% of our entire budget.

This problem needs to be tackled as a region…a state…and a nation. I believe the political process would be more successful than litigation. We need to express ourselves through the ballot box not the courthouse. The voters give the elected representatives the power not the special interests. Let us stop thinking in terms of party affiliation instead of governing philosophies. More of us need to become involved in government and civic organizations. Participation and lobbying of our governments in Tallahassee and Washington would be much more productive.

RailRoads Different Yesterday and Today

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If you are an American, you can’t help but be nostalgic when you hear a train whistle. It is in our DNA to wonder where that train is bound whenever we hear that plaintiff hollow tune.  How many old men become young boys when they remember Christmas and their Lionel Train sets?

For over a hundred years beginning in the mid nineteenth century, trains meant freedom. It was the way America travelled. Our everyday mundane life was swept away.  White coated waiters were synonymous with dinner in the diner and nothing could be finer. Trains not only took you from hearth and home but brought you back to your loved one. Some of us can still remember taking a trip on a train, dressed in our Sunday best. Some spent the night sitting up because we couldn’t afford a berth never mind a private compartment.

The railroad was what gave life to Stuart and all the towns up and down the line.  It enabled growth and economic prosperity. The train connected the town to the outside world when there were no phones and no highways. The tracks coming down the center of town meant progress and served as a statement of arrival. Civilization, convenience and conviviality all met at the depot. Anyone coming or leaving had to pass through. News was gathered and sometimes made. Children dreamt of an outside world that perhaps someday they would see by hopping aboard the 11:33.

But we no longer live in 1850 or 1900 or even 1968 when the last passenger train went quietly away. The Stuart depot is long gone, and I can’t even imagine our city ever having one again (even though the promise is sometimes hinted at by railroad officials). Passenger trains have always been money losers. Even in the Wild West days, the railroad made their money by freight and by selling the land that they received free from the government to new settlers and immigrants along their right-a-way.

Perhaps BrightLine or All Aboard Florida or FEC or the Fortress Group have found a secret way to make people moving pay. I suspect not. I suspect like so many things that modern Stuart faces…it is really all about greed. They claim that they own the land. They are private. They are a capitalistic, free market enterprise. But in truth, they are just one more pig at the taxpayer trough. It is easier to buy political acquiescence and influence than to have a truly great new idea. Like all crony capitalists, they are looking for one more handout…one more welfare check.

The railroad whistle no longer has the romantic sound that it once had for me. The train will not take me to faraway places or introduce me to new and exciting adventures. I have grown up. What is also true is that Stuart and the rest of the Treasure Coast have grown up as well. This venture will only cause us harm. It brings nothing but expense, inconvenience and will act as a noose around our necks. We need to make sure that those in Tallahassee and Washington pay a price, regardless of party affiliation, for their actions.

This is not a done deal.

Stuart and A Micro Transit System

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Since we choose to live within the geographical boundaries of Stuart, our property taxes are a bit higher than if we lived in unincorporated Martin County. For that small additional amount, we receive enhanced municipal services such as shorter police response times. It is far easier to obtain permits or open a business within city limits than in the county. Stuart is the county seat and in actuality the only full service municipality within Martin County.

Martin County provides what they term “public transit.” The system operates Monday to Friday from about 7am to 7pm. It does not run on the weekends or holidays. There are three routes within the county and an express route which travels four times a day to the Gardens Mall in Palm Beach County.  For the most part, you rarely see more than one or two people in a bus at any time. There are definitely reasons for the lack of ridership.

Stuart’s downtown trams move about the same number of people per year than the county wide system. For any public transit system to be successful in moving large numbers of riders, there needs to be a few essential elements. First, it must take the riders where they want to go. Depending on the demographic served, transit provides a way to bring people to where they are employed, shop, have appointments or are entertained.

Second, the system must be reliable. The public has to know they can safely return home and not worry about missing the last bus because it leaves at 5:00 pm. Therefore, frequency and the duration of the hours of operation are important. This is especially true if you are counting on public transportation to take you to and from work.

There also needs to be enough people or density within the geographic framework of the transit district to allow for the system to operate efficiently and be sustainable. Unfortunately, unincorporated Martin County lacks every element to having a full functioning public transit system. However, the City of Stuart has all the elements in place.

We are geographically contained. Our routes can be relatively short in duration allowing for the frequency needed to move a large number of people. A public transportation system can allow seniors to remain in their homes longer and be self-sufficient. Whether it is to visit a doctor or to the grocery store, seniors will be able to do that. A system can allow a person to leave his/her car home and go to work …no parking space needed. Teenagers can have the ability to visit a friend, go shopping or get to an after-school job without parental involvement. Someone can use the tram or bus to eat downtown and safely return home without the worry of parking or a having that extra glass of wine.

Our entire city becomes more desirable and livable. It can be an example for other cities to follow.  Imagine attracting young and middle aged families and singles because it would be necessary to own only one car. Teens and seniors would have the ability to get from Point A to Point B allowing for independence for these two diverse groups. Stuart could be known as the most livable city within Florida.

A commitment would be necessary by all residents that a true public transportation system is achievable and doable. It will not be accomplished tomorrow but will take a decade to be fully implemented. The city would also need to come up with funding sources. New routes would have to be thought out and be integrated with existing ones.

Stuart currently has a system that serves the needs of downtown.  The vast majority of our residents have not used that system. I believe it is time to have every resident be able to use a true micro-transit system within Stuart. We can have a future that serves our existing population and one that will be able to attract new residents. Then we would truly be a full service city.

Thoughts on Consolidation

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I am eagerly awaiting the report on the fire/rescue consolidation from the consultant. At the same time, I am becoming more and more concerned with the current conditions at Martin County’s Fire/Rescue Department.  The county commission and their department have been at  a contract impasse since last December. Both sides are at odds over a variety of issues critical to maintaining a functioning department. As time progresses I am uneasy about Stuart becoming involved with what appears to be an economic and, perhaps, operational nightmare.

The city has completed contract negotiations with our fire/rescue department. I believe the final contract represents a fair and equitable deal for both the employees and the city. I attended some of those bargaining sessions, which are open to the public, as a silent observer.  I can report that, though at times tense, both sides conducted themselves professionally throughout. The outcome is while employees received increases; our operating costs are still less than Martin County’s.

According to the Martin County Firefighters and Paramedics’ Union president, the county has already expended 107% of the overtime budget. The city and their firefighters/EMS employees, by working together, have decreased our own overtime costs substantially. According to the county’s union, the county is on track to lose 20% of their employees by May of 2016. This fact has been disputed by the county administrator. On the other hand, the city has not had employee attrition anywhere close to the county’s level, and our rate has remained fairly constant from year to year.

From what I have been told, Stuart’s two fire-rescue facilities are the most active within Martin County.  The vast majority of the calls are accident and medical related. We had only a smattering of house fires last year with a few brush fires. The City of Stuart has a paid agreement with Sewall’s Point to answer their fire/rescue emergencies, and those responses are counted in our statistics.

As a city commissioner, my only concern is how any consolidation or merger will affect Stuart’s residents and taxpayers. As of today, each commissioner and the management staffs have had briefings on the consultant’s progress but nothing has been given to us in writing. When a report is finally issued, I will need to study the data to make sure that whatever the recommendations are they will be based on using similar criteria. Currently, the budgeting and management criteria are accounted for differently within the city’s and the county’s budgets.

There are differences in health, PTO  and pension obligations. How the entities  pay to have equipment replaced and what happens to those funds in the future. Administration, finance, payroll and legal expenses are accounted for differently (Stuart allocates proportions of those expenses directly in the Fire/ Rescue budget while the county does not). In making a financial determination, not only do these costs have to be equalized for a merger or consolidation today, but we will need to know what will be the costs to Stuart’s residents, businesses and taxpayers going forward. The county already is near its millage cap so how we pay for any new department or consolidation is critical to analyse and understand.

Another question to be answered is how Stuart will do best operationally. As I said above, we have very good service. If you call with a medical emergency (the overwhelming majority of calls are just that), response times are excellent and the care received is outstanding. We currently have a station on either side of the tracks and, with the BrightLine looming, that is an important consideration. If Stuart were to give up operational control, we may not have a station on both sides of the tracks to respond for all our residents in the future.

Any decision made will be critical to how Stuart evolves and develops. If we disband our independent department, we won’t be able to return to having one. If Stuart does decide to consolidate or merge, it will be important that the new department be formed in a way that gives Stuart’s 16,000 residents some meaningful political representation into both operations and financing aspects of the new department.  Looking at the county fire/rescue department situation today, it gives me pause going forward.

Currently, as a Stuart commissioner and a resident, I know what our department costs and how it responds. To change that, I would have to be convinced the outcome for the city would be better for response times, financially and operationally. This will probably be the most difficult decision that I will make as a commissioner since I was elected. It is not a decision that I will take without much thought and deliberation.

Government, Markets And Parking

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Last week, I wrote concerning West Palm Beach’s City Place and how we could avoid making the same errors. I am a proponent of the government not becoming more involved in the market than is absolutely necessary. Governments do not understand the true nature of free markets. In my experience, when government seeks to have more than a minimum involvement, it corrupts market forces.

In the U.S. today, real estate is as perfect a market as possible . What is a perfect market? It has to have certain characteristics such as no participant in the market can set prices. Another characteristic is that there are no artificial boundaries to entering or leaving the market. There must be opportunity to fully maximize profit from one’s investment.

The one factor that can truly influence outcome without contributing to the general equilibrium of the market is government interference. The moment any government entity enters the market with any expectation of a desired outcome that is in contradiction to market forces, the market becomes imperfect. One of the biggest problems for the market is when government owns the means of production (i.e., the land or building). When government sells or leases property, it tends to have other motives which pervert not only that one parcel but the entire market which is unduly affected.

I am not suggesting that building and zoning codes are not needed. Our citizens and residents do need to have a community that reflects their desires in the place they want to live.  However, that being said, government should tread very, very carefully when becoming the Owner of income-producing property.  The irony is not lost on me that Stuart will continue to be the ground owner of the Triangle Property, and as such, has contributed to just what I am saying I am against. At the present moment and with that particular property, it would not have been developed because of earlier government involvement.

The City of Stuart’s next construction venture may be building a parking garage. Before even contemplating spending tax dollars on such a project, a few questions must be thoroughly vetted. This week, I learned from senior staff that within the downtown area, there are approximately 1700 parking spaces of which 1450 are public. Without being a traffic engineer or expert, I can’t believe we do not have adequate parking at present.

I am downtown almost every day and several evenings per week and have found no problem finding a space. During peak times in the evening, I will park at the Sailfish lot which is less than a 2 minute walk from the Lyric or The Gafford. With the tram and now valet parking, it is convenient for everyone to use either that lot or the Kiwanis lot and be at your destination within minutes.

For argument’s sake, I will assume that a garage is needed. Where should it be built? The most likely places for construction would still be on the present parking lots or at least in a location just as far away. Therefore, how many spaces would we actually gain? If we acquire private property to build a garage it would still be in the general areas where we now have lots, and we would be losing the ad valorem tax revenue by the taking of private property and converting to a public use.

Wherever we locate a public garage, the city will be perverting the market today and in the future. It is evident that there is no private market for a parking structure or it would have been built using private dollars and then charging the users. This then leads me to the conclusion that even if the city built a garage, the cost of construction and the continuous maintenance would fall on our taxpayers and not the users. Is it the city’s place to subsidize a perceived need for the private businesses in our downtown area using the tax dollars of all taxpayers?

For the next half century, the location of the garage would determine the direction and shape of development for the entire corridor. Depending on area and height, the garage could end up being the largest building in the district. Both aesthetically and economically, the garage will have an enormous impact on the real estate market for years. Once again, by insinuating itself in the private market, government would most likely have an outsized say in the future of downtown development and all of Stuart.

Before Stuart spends millions of dollars of taxpayer money on a perceived solution in search of a problem, much more objective sturdy would be needed. Societal and technological trends also should be taken into account. Thirty years ago we needed to go to a physical store to buy every conceivable product. Today, I ordered two hats, office supplies and a new kitchen blender without leaving my office. As society continues to evolve perhaps thirty years in the future, children will look to an empty parking structure (that Stuart will still be paying for) and ask “What’s that, Mommy?”