Category Archives: Government Spending and Taxation

Urbanization and County Government

Posted on by

The topic of CRAs has been in the news lately. Both Stuart and Martin County are and will be going through discussions on what are the next steps for these areas. It seems that the city and county are going in different directions. Stuart wants to enlarge its CRA and the county wants to do away with theirs. The philosophies of both entities are different regarding what is to be accomplished within those areas. It is rooted in the differences between municipalities and counties.

According to the enabling legislation (which is Chapter 163 of the Florida Statutes), both counties and cities can have CRAs. The definitions of what neighborhoods would qualify for designation as a CRA are usually found in urban settings. The acronym stands for Community Redevelopment Area. When one thinks of that term, one does think of areas in cities … not unincorporated county areas.

Counties were originally established as arms of the state to provide state services. That is why there are mandated constitutional offices such as Tax Collector and Property Appraiser in every county in Florida. With Florida’s rapid growth and urbanization, counties took on the role of municipalities in the services they provide. This resulted in Urban Services Boundaries. What should have happened as populations and densities increased? There should have been the formation of municipalities to provide urban services. Counties should have remained in their original roles instead of doing a bad imitation of cities.

Hobe Sound, Rio and Jensen Beach are not independent municipalities with an elected government representing their communities. Instead Martin County created CRAs there and in other urbanized parts of the county to substitute for local elected government. This does not work. The County Board of Commissioners valiantly tries to provide services for the entire county, but the services provided in an urban environment are different than those in a suburban or rural one. Their needs are different and, in some cases, irreconcilable. This results in higher taxes being levied on all county residents regardless of if they use or want the services being offered.

You cannot substitute the CRA mechanism for the legitimate desire of the urban residents of unincorporated Martin County to have their own representative bodies determing their needs. The agricultural areas of western Martin County should not be paying for the services demanded by those in the urban sections. The county should have encouraged the development of more municipalities and the annexation of the more urban unincorporated areas into municipalities.

This would have resulted in dramatically reduced taxes for all county residents being levied, since only those functions mandated by the state to be provided by counties would be needed. Wherever urban services were demanded, only those affected would be taxed by their local municipalities to provide those services and only those services the local residents wanted. The one size fits all system Martin County currently has is undemocratic and fiscally irresponsible. CRAs are not meant to be municipalities and that is why there is a political disconnect.

I supported the county when the elected county commissioners became the Community Redevelopment Agency Board because they are elected. Appointed people should not have control of tax dollars. However, the better course would have been an elected government closer to the residents of those areas deciding urban issues. Being a resident of a municipality does not mean you are not a resident, voter and taxpayer of the county. Let’s return to the original intent of what a county and what a city is. Each should do what it does best.

The Sound Of Music

Posted on by

The city commission has once again decided to tackle the noise ordinance.  This is one of the most controversial matters that will come before the commission this year. People bring to the issue both emotion and hyperbole when discussing it. Some seem to want to make the issue solely about a few venues playing music. Noise that affects Stuart’s quality of life is more than just that.

As I sat on the dais last Monday night, I saw people take sides instead of trying to work through a problem.  And make no mistake that a quality of life issue is a problem. For that reason I made a motion to form a special committee. The committee will consist of each commissioner appointing one Stuart resident, a representative from Main Street and one from the Downtown Business Association. The committee will meet with staff and come up with recommendations for the commission within 90 days.

The issue is not only about restaurants and bars playing music. It encompasses your neighbor who has his MP3 playing so you hear it in your home. It is about the person using a table saw in his garage at night. The cleaning of grease traps after a restaurant closes. What everyone on that committee will wrestle with is how the City of Stuart will meet those competing interests… not only about a few music venues.

Stuart has a unique position on the Treasure Coast. We are a city of 16,000 residents but the downtown for 220,000 people. Our infrastructure, fire rescue and police need to provide services for every person that uses the restaurants, stores and venues in the city. This is regardless of whether they live here or not, pay taxes here or not. It is not an insignificant burden on our municipal government and budget. While the city does collect the bulk of the sales taxes in Martin County, we receive only 9% back from the county and that is after the state takes its percentage from those taxes.

I don’t buy the argument of economic ruin for the city if a few outdoor venues are required to lower the volume at which music is heard.  Our retail stores and our many restaurants attract residents and visitors alike not because of the music playing at these few venues, but because of good food, drink and merchandise being offered. There is a place for the listening of music outdoors. However, not all music is appropriate to be played outdoors in or close to residential neighborhoods.  Some of this music needs to be played at an indoor club in non- residential neighborhoods.

At the same time all residents need to understand that they have chosen to live in a city in close proximity to others. That does entail the acceptance of neighbors having parties, businesses operating and music being played. Stuart is not the suburbs though there are single family homes in residential neighborhoods. We are a place that wants to keep our “Old Florida” charm while moving forward.  Music and the arts are critical to our economic viability. Let’s come together and see if there is a way to embrace as many points of view as possible on the subject of noise.

Thoughts On A Birthday

Posted on by

This Saturday is the 239th birthday of the United States. Amidst the fireworks, hotdogs, flags and beer, what are we really celebrating? When those men gathered in Philadelphia that summer, what did they hope to accomplish? If you were to have asked them, they would have told you that they wanted to govern themselves and be left with a minimum of interference in their trades, professions and businesses. That is not very different from what we want today.

In trying to achieve that end, Jefferson expounded the philosophy of John Locke (with a smattering taken from scripture and Hobbes) in writing the Declaration. That document was the philosophical argument for achieving “home rule” and economic freedom for Americans. The 13 colonies were no longer to be ruled from afar by a tyrannical monarch and unrepresentative parliament but rather each colony would govern itself and form a loose confederation of member states.

The Declaration, while democratic, did not guarantee universal suffrage or equal rights for all. It is a document that enunciates broad truths that set the people of the United States on a path that is still unfolding.  We may interpret the U.S. Constitution, but we cherish the Declaration. Our Declaration of Independence clearly states that the people have unalienable rights that cannot be taken away.  Jefferson writes that governments are established by the people to secure and protect those rights. This is the revolutionary idea that the governed have the power to remove and dissolve the government. There is no divine right of kings or of other functionaries to rule without the will and consent of the people.

To paraphrase Joe Biden, this is a big deal. Even today, we forget that governmental bodies and officials can only rule us by our consent. That is why we must be active and engaged. In order to keep liberty and rights, the people must be ever vigilant and suspicious of those in power. It is the people’s duty to constantly be on guard against the usurpation of their unalienable rights.

Whether elected or appointed, our officials need to answer to the people. So the people must fulfill their duty of demanding that they do answer. From the president to the governor to the city manager to a commissioner, it is important that citizens engage, provoke and question their votes and decisions. For elected and appointed officials serve at your pleasure not theirs. On our 239th birthday, be especially vigilant to maintaining the gift Americans were given.

Economic Development and Government

Posted on by

In Sunday’s Stuart News, Eve Samples asked business people to join the newspaper’s sounding board on the subject of economic development. I have been a business owner for many years and have some level of expertise on the subject. As an elected official, I would be ineligible to belong to that sounding board. That doesn’t preclude me from expressing an opinion. I will just do so here instead.

The News editorial is quite right that we need further diversification from the trio of Florida business mainstays of agriculture, tourism and construction. The paper correctly insists that when taxpayers’ money is used by government to fund incentives, the three principles of transparency, accountability and proven performance by the companies should strictly be adhered to. However, I would go further and categorically state that government or their agents, such as the Business Development Board, has no right using taxpayer funds to assist certain companies while ignoring others. This type of favoritism is nothing more than crony capitalism.

What we owe any individual or business is a simple non-bureaucratic means of opening or moving to our area. The City of Stuart, Martin County and Florida should look at ways to advance economic development rather than hinder it. Permitting of any new enterprise can and should be simple with as few barriers as possible. What I would like to see for Stuart is that when a larger business is looking to open or move to the city, a point person from our economic development department act as an ombudsman to all departments on the applicant’s behalf. This would avoid the frustration that many business people face when dealing with the bureaucracy.

Over and over again, we have seen the Digital Domains and the Torrey Pines story played out.  They are given millions in tax payer dollars that result in heartache instead of jobs and taxpayer debt instead of additional tax revenue. Government should stay out of the way of the private sector. What government can and should do is provide the basic infrastructure to have a great quality of life. Schools from pre-k to graduate school should be the best when compared with others in the nation and in the world. Amenities such as parks and libraries should be well maintained and free to the public. Our rivers should be able to be enjoyed. Roads, water and sewers should be first rate.

Elected officials and bureaucrats are not very good at picking winners and losers in the economic sphere. So why we continue to allow the same patterns and practices to continue is a mystery. What we, as government, can do is remain neutral and only pass regulations that further the public good. Let the market determine the feasibility of a particular business entity to prosper and survive. As taxpayers, we need to insist that government stop using our money to back bureaucratic-inspired schemes to allow slick characters to drink at the people’s trough. Government is never going to be smarter than the market.

Stuart Real Estate, Government and Politics

Posted on by

 

For some odd reason, the City of Stuart believes that being a Landlord in the private commercial real estate market is beneficial. This belief is wrong for both philosophical and practical reasons. While it is an allowable practice under Florida law for municipalities to own and lease real estate to the private sector, I believe the city has taken it to a level that is detrimental to our further economic development as a municipality.

The justification of a municipality owning property and then leasing that property to the private sector is that the municipality will have a “predictable stream of income” from the rents. What we have seen in Stuart is that a Tenant makes an initial deal with the city at one rent and then subsequently comes in and pleads that the rent is too high and wants a reduced amount. This negates the “predictable stream of income” theory.

This most recently has occurred when the tenant with a 50-year term lease for a city owned lot on Monterey requested a reduction in rent from $31,500 to $9,000 per year. The lease which commenced January 1, 2007 has already been modified once from the initial rent of $52,500 per year. If the new rent is accepted by the commission, the city will have $43,500 less per year than originally anticipated not including any cost of living adjustments. This “predictable stream of income” has proven less so.

We can see this “voodoo economic” principle at work over and over. The proposed NorthPoint hotel project where nothing has been built after ten years and the initial rent has already been cut in half even though nothing has yet been paid. In addition once the lease finally commences there will be an abatement of the first 7 to 10 years of rent. This demonstrates why this practice should be called “the unpredictable stream of income” theory.   On a very practical level, this shows why being a Landlord does not work. City staff and the commission have demonstrated an inability to manage a function that belongs in the private sector.

No government entity in a free market capitalistic society should believe it is acceptable to compete with the private sector. It is socialistic when the government owns the means of producing wealth – i.e., real estate. By owning and leasing property, the City of Stuart helps determine what rents are in the private sector. Any appraisal would have to include how much the city charges its tenants. It has an undue influence on our real estate market.

I do not mean to suggest the city should not influence development through zoning and building codes. Further, there is a very valid reason for the city to buy a blighted or underutilized property and then re-sell that property to a developer.  We should work with and encourage beneficial development through the private sector. A good example of this is the city buying the blighted “triangle property” and working with the private sector to build a good and needed project on the site.

Stuart now has millions of dollars invested in the ownership of supposed income producing properties. If the city collects every cent of rent projected in 2016, it would be only a million dollars (1/3rd of which is generated by one property, the Sunset Bay Marina). The city should begin selling some of this surplus real estate.  It could then take the proceeds and buy blighted and underutilized properties, for example, those on Dixie from Sailfish Lot to Colorado Avenue. Then the city, working with a private developer, can do the same thing it is doing with the “triangle property”. The property management fund should be used to make our city more productive by encouraging private developers not by holding desirable properties in-house.

Our current strategy is doomed to failure. It preserves the status quo. It does not use city funds to achieve the highest return. There are only so many dollars Stuart has to work with to improve the city. In the name of keeping ad valorem taxes down, Stuart holds onto and leases property. That very premise results in a false conclusion. By not using our leverage efficiently, the city depresses Stuart from developing into a vibrant place for the creation of jobs, homes and businesses. Without those things happening, ad valorem taxes will increase because our base is not growing. Surplus properties should be sold.

Most Regulation Is Best Done Locally

Posted on by

One thing Florida has in abundance is layers of government. There is a government entity for everything from water policy (SFWMD) to children’s programs (Children Services Council). Regulations and laws are in abundance…good, bad and indifferent. Then add in the dysfunction of Washington where there are 175,000 pages of federal agency regulations plus bills passed by congress and signed by the president. The “Land of the Free” has become the home of the community removed regulator.

We have lost perspective on what should and should not be regulated and who should do the regulating. The adoption of our federal constitution was supposed to give the federal government only enumerated powers reserving all else to the states and the people. Well, forget that in today’s U.S.  Now Washington wants to control every part of our society which makes individual liberty more and more problematic.

The crumbs of control that modern Washington leaves behind Tallahassee wants to gobble up. Examples of this abound. There were some really bad legislative bills this year that would have limited local control even further. Thankfully those bills were casualties of the budget wars.  If passed, the counties and cities would have had even less discretion than they do now to listen to their constituents and do what they want.

While we would like to think that the labels of liberal or conservative, Democrat or Republican, will give us some clue as to where politicians stand, I don’t believe those labels much matter. From what I can see, it is not about ideology as much as control and trading favors. As an example, just remember the Big Sugar subsidies that both Senators Nelson and Rubio voted to maintain and increase.

One of the bills this session in Tallahassee would have prevented local governments from the regulation of internet-based taxi services such as Uber. Local governments currently have the power to regulate old fashioned taxi services. What is the rational not to allow localities to do the same with all taxis? Look no further than lobbyists for those internet-based services.

I am not in favor of setting up big regulatory bureaus to regulate the taxi industry. I can see a need to make sure the drivers and the cars meet some minimum safety standards. We don’t want our citizens to hail or text for a cab to go to the doctor and end up being robbed or worse. That type of regulation is a good common sense approach for all taxi services.  That approach for internet-based services would have been banned under the bill that died in the past session. Just because you hail your cab electronically doesn’t mean you should not have a safe ride. Besides if the majority of the people in a municipality decide that they want no regulation of the taxi industry, they need petition no further than City Hall instead of Tallahassee.

It is hard for the average citizen to have much input in Tallahassee or Washington. What individual legislators may say at home does not always match how they vote in faraway state and federal capitals. Whatever local government officials do is right there for the voter to see. If I, as a commissioner, tell you something and then vote in a different way, you can find me easily enough to ask why.

Local control of most governmental functions is important. The closer that control rests with the people the better. Citizens need to monitor their elected and appointed officials. It is easy for those officials to forget why they were given the responsibility of governing. Political labels or promises are just that. They mean nothing unless the official does the will of the people.

The Budget and Reorganization

Posted on by

The City of Stuart has begun planning for next year’s budget. The good news is that there is no anticipated increase in our millage rate. So it appears we, as a state, county and city, are beginning to see a recovery in the value of our homes and business properties. That is a very good sign. Increased property values (especially for commercial properties) will bring more money into government coffers. Government at all levels will have two choices – either do what was done in the past and foolishly use the money to increase salaries, staffing levels and perks or continue to be fiscally prudent as it has been during the lean years. I am sure the taxpayers want the latter.

In order to accomplish that, we must look at what services the City of Stuart should provide. Those services are Public Safety (Police and Fire/Rescue), Public Works (Water, Sewer, Roads, Trash and Parks), and Development (Building, Planning and Zoning).  There are also support departments that mainly serve to make sure that those listed above can provide the services. They include Finance, IT and Human Resources. Then, you have departments that are both external and internal such as the City Clerk and the City Attorney. Except for the attorney who reports directly to the city commission, all city employees report to the City Manager, who then reports to the city commission.

As part of the budgetary process, I have been speaking with the city manager about eliminating one department known as the Community Redevelopment Agency or CRA, and looking into downsizing our IT Department which currently consists of four people. The CRA is a geographical area that is part of the city that has its own funding source which is dedicated for specific projects within it’s boundaries. In the past, it was not a separate department but only a dedicated fund for use within those boundaries. I want to see it returned to being a dedicated fund only. Any specific projects that would fall within the CRA boundaries could be accomplished by using our existing departments to oversee the work as similar projects in other parts of the city are now done. An example would be the Public Works Department which now successfully accomplishes certain duties and projects by using different dedicated funds. I see no reason why a distinct separate department is necessary to administer a fund.

I believe the city needs to more fully engage the private sector for certain functions in technology, collections and finance. No technology department of our size can keep abreast of the latest and most cost-effective solutions and systems. As a business person, I have found that it is better not to buy systems because they change and become obsolete so rapidly. I rely on renting space on outside servers to store records and using internet-based programs to perform accounting and other functions. This cloud computing is done by every level of government including the CIA.  I am not saying that every technology function should be outsourced, but I am saying that all systems should be continuously evaluated to see if it can be done better and more cost effectively by the private sector or in other ways.

Let me be clear.  As a commissioner, I believe that the overall city workforce is dedicated to providing excellent service to the citizens. We need to reorganize that workforce to better serve the public. In some cases, I will be looking to increase the number of employees.  For example, the Police Department during the economic downturn has had a reduction in the number of officers patrolling our streets. The biggest complaint I hear from people is the lack of enforcement for minor quality of life offences such as traffic control, noise and code enforcement. This needs to be addressed so we can have a better city.

Now is the time to make sure that Stuart’s foundation is in order. We can’t truly build our future if the blocks are missing or not plumbed. What government tends to do is add people to fix problems that are created by keeping systems and people that should be replaced. As someone who has managed literally hundreds of commercial properties with thousands of employees over the last 40 years, I know that you need to continuously review and adapt your organizational chart to be successful in a changing world. If you are tied to past practices, you are doomed to expensive future failure. I do not want that for Stuart’s residents and taxpayers.

How Far We Have Come From The Founders

Posted on by

Some days, I wake up and I am optimistic about the future. This is not one of those days. Today, I worry about the continued steady march of All Aboard Florida and the degradation of our lagoon. It seems the deck is stacked against the citizens and residents of the Treasure Coast. Our elected representatives in both Washington and Tallahassee pay lip service to our environment and quality of life but then sell us out for a campaign contribution from Big Sugar or AAF or anyone looking to get their subsidized corporate welfare payment.

Hamilton, Jefferson and Madison never envisioned a system where government dollars would be spent subsidizing agriculture or industry.  Alexander Hamilton never asked that the Bank of New York or the New York Post, both of which he founded, be given a subsidy. Thomas Jefferson and James Madison never encouraged the passing of farm bills so they would be paid by the Feds to grow or not grow tobacco.

Our founders were men looking to limit government influence on daily life not encourage more. They had just fought a war to get the British off their backs. It was obvious to them that monopolies and crony capitalism were bad. Government was to be an even arbiter for business and citizens not the deciding factor of who should get tax payer dollars.

But now we see the harm that Big Sugar and AAF are doing and will continue to do is only made possible by our elected representatives. The land south of Okeechobee would be useless if sugar and other agricultural products weren’t subsidized. The private market won’t finance AAF. That is why both Washington and Tallahassee are using public dollars, our taxes, to allow something the people do not want.

The Pols tell you that it is about jobs and affordable food, but the U.S. sugar price is double that of the rest of the world and nothing AAF is doing even remotely resembles high speed passenger rail. More and more, the system favors the well connected and well-off over the rest of us. The people are ignored and deceived so that the gravy train can continue.

It is wrong and we must hold the elected representatives responsible for their actions. We need to stop arguing as if the blather on Fox or MSNBC amounts to anything more than amusement. Whether one is a Republican or Democrat is meaningless in the government today. It is a convenient way to divide us so that the powerful can continue taking more and more and giving less and less. There is no right or left…only the connected and then the rest of us.

We need to wake up and think about actualities not the spurious arguments being made by the news media. When was the last time giving billions in tax breaks and handouts to a sports team resulted in a dollar in your pocket? Since we are giving payments and subsidies to “Big Agriculture,” how come the cost of food is so high? Government’s role is to be the arbiter and make sure the field is level for everyone. They should not choose which business receives the people’s largess.

Amendment 1 was passed by 75% of the voters. Those voters assumed that they were doing so to make sure the sugar land and other strategic parcels were purchased. They didn’t vote for that amendment to fund government agencies or as a big give away to the friends of the governor and legislators. Either the Pols in Tallahassee respect our wishes, or we should vote them out. This is not a Republican or Democrat issue. Because when our rivers are dead and our treasury is dry, no one will care if a liberal or a conservative philosophy resulted in this coming to pass.

Representing You In Tallahassee and Stuart

Posted on by

Another legislative season is in full swing in Tallahassee. I have been there twice this session lobbying for Stuart and all Florida cities with the Treasure Coast League of Cities Advocacy Team. Once you are there, you go from legislative office to office pleading your case with either a legislative aid or, if fortunate, the representative or senator directly. It is easy to become lost in the maze of corridors and interconnected buildings that make up the capital complex. Somehow, we made it to every appointment on time.

Why is it necessary to go to the state capital to see our representatives instead of just e-mailing, telephoning or even seeing them when they are home? We do all of that but it is important to make our case while they are actually considering legislation that will have a direct impact on our city. Just as you and I cannot think of all the ramifications of a particular piece of legislation, neither can they. The objective of our visit is to make sure that our point of view is heard before a vote is taken.

Too often a local problem that is unique to one place becomes the basis of far reaching legislation for the entire state that may adversely affect Stuart or Martin County where that unique problem just doesn’t exist. Another reason is that anytime that Tallahassee passes a law making the localities do something without providing the funding, we may have to raise taxes to comply. The same can occur when the state gives another property tax exemption or does away with a fee that we currently are collecting. In each case, local government could be forced to raise taxes to cover the shortfall sometimes affecting the very people that can least afford it.

In the past, the legislature and governor have enacted legislation which pre-empts local government from prohibiting or regulating certain businesses or industries. For example, Tallahassee has prohibited localities from regulating vacation homes or apartments. How would you like to live next door to a place that changes occupants daily? Sober Homes are another good example of the federal and state governments trying to help people but the law of unintended consequences has resulted not in treatment facilities but rather with warehouses for people with serious problems located in our residential neighborhoods.

That is why I go to Tallahassee to preserve our rights to Home Rule. The best form of government results when it is as close to the citizens as possible. Nothing is closer than I to you. Seeing me is no rare occurrence because I am your neighbor, your customer and your friend. We share many of the same concerns, have many of the same problems and live next to each other. I go to Tallahassee to represent your interest just as I do on the city commission.

 

Northpoint Through The Prism Of Past, Present & Future

Posted on by

Some at City Hall want to rent a spit of land known as Northpoint to a developer to build a hotel and restaurant. The location of the property is just on the north side of the old Roosevelt Bridge between Dixie Highway, the FEC track and rail road bridge. But before I venture my opinion on this project, I want to visit three different years in 20th century America. As you will see, the past is important to understanding my position on this project in the present but especially for the future.

The first year I want to examine is 1971. I began college that year. The apartment I rented was the first floor of a two family house in Queens, NY. My rent was $75 a month plus utilities. I had a full time job that paid $130 per week in a New York City hotel. The subway fare was 30 cents. The White Castle around the corner from my apartment charged 12 cents per slider. I ate there several times a week.

Now, it is 1953, the year of my birth. My mother told me the rent was $32.00 per month for our NYC apartment. The subway had just been raised from a dime to 15 cents. It was President Eisenhower’s first year in office, the Korean War ended and the minimum wage was 75 cents. Also 50% of American homes had a TV.

Lastly, let’s look at 1932 which is 83 years ago. The country was in the midst of the Great Depression. The U.S. GNP fell more that 13% and unemployment was 23.6%. Herbert Hoover was in the White House. You couldn’t buy a legal drink because Prohibition was still the law of the land. The New York City Subway was a nickel.

Do you think anyone in 1932 America could predict what our country would look like in 2015? In 1932 Stuart was 18 years old and Martin County was 7. There was radio, and talking pictures had been around for five years. Television, the internet and cellular phones were unknown. Hitler had yet to come to power in Germany. World War I was still referred to as the Great War. In 1932, forget about predicting what the world would look like in 2015, Americans couldn’t even see the world of 1943 and the inferno to come.

Understanding the above, if Stuart was negotiating a lease for Northpoint in 1932, what would the terms be? I would suspect vastly different than what they would be in 2015. But today Stuart is negotiating a lease for Northpoint that will run 83 years until 2098. Lease terms written for the Stuart of 2015 that will bind our children, grandchildren and in some cases great grandchildren. Will the terms and concept of this lease be relevant at the dawn of the 22nd century?

We are obligating the city of tomorrow with our actions today. We may have a legal right to do so, but we do not possess the moral right. There is just no possible way that this is good government. This action is done with a great deal of hubris and paternalism. I have other serious doubts and questions about this project. Even if I had no others, I could not in good conscience vote for this lease; which will bind the hands of future generations of Stuartians long after I and the present commission are gone.