Category Archives: Government Spending and Taxation

The Pool & The Sales Tax

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So, how do you bring out as many parents and students as possible? You place an item on the agenda regarding a beloved person or institution. In this case it was the institution of the pool at Martin County High School and whether or not it should it be closed.

When the BOCC approved the building of Sailfish Splash Park and the pool there, it was supposed to save the taxpayers money because the County would have a modern facility instead of County taxpayers contributing to the old pool at the high school. If you were like me, you thought that then the school pool would no longer be needed and, therefore, would be closed.

Well, Martin County taxpayers did stop contributing toward the upkeep of the Martin County High pool, but the Martin County School Board taxpayers then picked up the entire tab. You may ask aren’t the two the same? The answer is yes. But, if you think as a politician or a government employee, the promise was kept.

I don’t know whether we need two pools of this magnitude in Martin County. I suspect we do. In fact, I would advocate for the BOCC to build more community pools. Then, of course, we must ask ourselves what role and what government entity should be responsible for sports and recreation.

In most of Europe, there are no sports teams connected with schools. Sports and recreation are handled by clubs. Schools do have gym classes, but their primary focus is education not sports competition.

Can we continue to afford parks that have ball fields and basketball courts for leagues and games while at the same time schools providing duplicates for school athletics? Remember, in the non-governmental world, there is only one set of taxpayers.

But, back to the school pool. The chamber was packed. Not a seat in the house to be had. It was SRO (standing room only). Parents, alumni, and students recounted how that pool was and is a life saver for so many. It probably was and is.

The cost of the pool is budgeted at $154,500.00 for the coming school year. That is not much in the overall school budget. The Board decided that the pool may come back for further discussion after November’s referendum on the ½-cent sales tax. It was a rational decision by a very calculating Board. For I bet, when those parents and alumni go to the polls, they will be voting in favor of the ½-cent sales tax.

Remarks Made to Stuart City Commission on a Brightline Station

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I AM NOT HERE TODAY TO TELL YOU HOW MUCH I DISLIKE BRIGHTLINE COMING THROUGH OUR CITY.

THOUGH FOR THE PAST FOUR PLUS YEARS I HAVE BEEN A VOCAL CRITIC.

I AM ALSO NOT HERE TO TELL YOU THAT BRIGHTLINE HAS A BAD BUSINESS PLAN AND MODEL.

THOUGH I BELIEVE THAT IS AS TRUE TODAY AS IT WAS BEFORE.

THE COURTS, WASHINGTON AND TALLAHASSEE HAVE DEALT BLOW AFTER BLOW TO OUR EFFORTS TO STOP BRIGHTLINE.

THE TRACKS HAVE RUN THROUGH MARTIN COUNTY AND STUART FOR THE PAST 130 YEARS. FEC OWNS THOSE TRACKS AND THE STUART CITY COMMISSION IS NOT GOING TO PREVENT FEC OR BRIGHTLINE FROM USING THOSE TRACKS.

WISHFUL THINKING OR BURYING OUR HEADS IN THE SAND WILL NOT CHANGE THOSE FACTS.

WITH THAT SAID…WHAT SHOULD THE COMMISSION ULTIMATELY DO?

YOU SHOULD TREAT BRIGHLINE IN THIS INSTANCE AS YOU WOULD ANY OTHER BUSINESS OR DEVELOPER THAT WOULD COME BEFORE YOU.

WE IN STUART ARE KNOWN TO WORK WITH APPLICANTS TO ACHIEVE WIN-WINS. WE SHOULD NOT TREAT BRIGHTLINE DIFFERENTLY.

THE USE IS IN THE COMP PLAN AS HAS BEEN DEMONSTRATED. LESS THAN A DECADE AGO WE WERE LOOKING FOR AMTRAK TO COME TO STUART.

BRIGHTLINE WILL BE PLACING ITS STATION ON PRIVATE PROPERTY THAT IT WILL PURCHASE.

THIS COMMISSION, STUART AND MARTIN COUNTY NEED TO PUT ITS FEELINGS ASIDE. WE DO NOT HAVE A TEST AS TO WHETHER A PRODUCT THAT A BUSINESS WILL SELL IS NEEDED OR WILL THAT PRODUCT BE PURCHASED. THAT IS NOT GOVERNMENT’S RESPONSIBILITY.

BRIGHTLINE WILL CHANGE STUART. THERE WILL BE ADDITIONAL EXPENSE TO BOTH MARTIN COUNTY AND THE CITY. THOSE ADDITIONAL EXPENSES WILL BE PAID BY TAXPAYERS WHETHER THERE IS A STATION OR NOT.

IF BRIGHTLINE IS COMING AND IT APPEARS THAT IT WILL THEN A STATION WILL BE A PLUS TO GO WITH THE NEGATIVES.

IF BRIGHTLINE IS STOPPED BY ANY PENDING LITIGATION, THAT WOULD BE FINE. THEY WON’T BUILD A STATION.

IF NOT STOPPED THEN WE WOULD BE POSTIONED TO HAVE A BENEFIT COME FROM WHAT WE DON’T WANT TO SEE HAPPEN.

THANK YOU

Brightline Is Coming

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Do you remember the first time you heard about Brightline?

It was the high-speed rail that was supposed to be financed privately? Well it just received $1.15 billion in tax-free bonds to expand from Palm Beach through Martin, the Treasure Coast and all the way to Orlando. Brightline is on its way through Stuart.

I could give you several economic arguments why this 19th century technology should not happen. But this no longer has anything to do with economics. This is now, in actuality, if not in name, a PPP (private-public partnership). And, it is heavy on the public part. While the railroad executives will swear that this is still a private sector enterprise, they would be lying.

The Feds and Florida have decided that taxpayer dollars should be used to build the infrastructure of a private company. Governor Scott and his wife own a large share of stock in the parent group and in a Chinese company that will benefit from helping build the trains. Once again, the rich and powerful helping themselves, to the people’s detriment.

Those bonds would never have been successfully sold in the private market. Since they are tax-free, they will do just fine. Investors now realize that both Tallahassee and Washington will support this endeavor regardless of the economic realities. If Brightline is inevitable, as I believe it is, then what should Stuart and Martin County do?

The first thing is acceptance. Stop fighting and see how we can take advantage of a bad situation. If Brightline wants to put a station in Stuart, then work with them so as many trains stop here as practical each day. Make sure Brightline purchases property for a stop at an appropriate place so that it does not hurt the Downtown corridor. Stuart needs to keep in mind that Brightline will not operate at high speed through most of the City.

Take them at their word that they are a private company and under no circumstances give away our local tax dollars to incentivize this.

In the next fifty years, we will be spending millions to repair crossings. This is regardless of whether Brightline brings us benefits such as a local station or not. I still believe that their passenger rail concept will fail. At some point, the government will come in and take over the money-losing proposition. When they do, in 5 or 10 or 15 years, Amtrak or Tri-Rail will inherit that station.

In a convoluted way that was what was to happen a decade ago when Amtrak was to bring rail service to Stuart with a multi modal station. When Brightline really does become public, a true commuter line can be established. This will allow an easy commute south, fulfilling an idea that should have been planned decades earlier. Unfortunately, this is no way to run a transportation network.

Stuart and Martin County now should make lemonade from the bushels of lemons our communities have been pelted with.

Martin County Taxpayer’s Association Review of Martin County’s Special Assessment for Fire Service

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The mission of the Martin County Taxpayer’s Association (MCTA):

“To monitor and review all fiscal and tax matters affecting Martin County. To engage public officials, community leaders and private sector organizations who may influence the economy and efficiency of the County of Martin, the School District, municipalities and other taxing authorities in the matter of taxes and the financial resources of the County.”

In accordance with this mission a review was undertaken by the MCTA of the Martin County’s Special Assessment for Fire Services (Fire Fee.)

For some time now, the City of Stuart has had a Fire Fee to help pay for providing fire service. Many Florida local governments, including Broward County, have also instituted Fire Fees. The Florida Legislature, under constitutionally protected “Home Rule Authority,” has authorized local governments to charge several special assessments and fees. The specific authority is granted to county governments under Chapter 125 of the Florida Statutes.

There was a study performed by Government Services Group, Inc. (GSG) for Martin County. The study presented several scenarios as to how a Fire Fee could be implemented. It is important to know that the methodology to determine the Fire Fee needs to conform to statute and legal requirements. MCTA assumes that the methodology being used to determine the Fire Fee by Martin County meets all legal requirements.

Martin County Board of County Commissioners (BOCC) voted to institute the Fire Fee on July 24. The BOCC adopted the Fire Fee by using one of the choices that was outlined in the GSG study. The rationale in doing so, according to their literature, “is to have a dedicated, equitable and stable funding source to pay for fire protection and prevention services benefiting property in Marin County.” The BOCC contends that their present source for funding of fire services is unstable since it relies solely on ad valorem taxes.

To quote the county’s educational handout:

  • Property values fluctuate over time, resulting in an unpredictable funding stream.
  • Properties are taxed based on assessed value. This means the tax collected for one property may be different when compared to properties of a similar type.
  • Florida Constitutional Amendments are passed from time to time which increase property tax exemptions. Each property tax exemption reduces the county’s ad valorem revenue which funds fire services.
  • If the proposed Florida Constitutional Amendment 1, the Homestead Exemption increase, passes in November, staff anticipates a decrease of $2 million in ad valorem funding from the Fire Rescue MSTU (Municipal Service Taxing Unit). With an operating budget of $2.45 million, this loss in revenue would have a substantial negative impact on the Fire Rescue MSTU operating budget.

The Fire Fee will charge different amounts for several property classifications. Regardless of size or value, residential units will be billed a flat rate per dwelling of $151. Nonresidential properties have three different categories. Commercial properties will have a rate of $0.32 per square foot. Industrial/warehouse will have a rate of $0.05 per square foot and institutional properties a rate of $0.24 per square foot.

Churches and not-for-profit organizations will be exempt from the Fire Fee. The BOCC has created an economic hardship program to assist homesteaded property owners who meet the requirements yet undetermined.

Fire protection is currently funded using the Fire MSTU. That MSTU not only funds the fire portion but also the medical/transport section of the Fire/Rescue Department. By statute the ambulance transport and emergency medical services cannot be funded through the Fire Fee. Therefore the “Fire” MSTU will undergo a name change and beginning in 2019 be called the EMS MSTU.

The proposed budget for the Fire/Rescue Department in 2019 is $43,763,556. The department will be funded in the following manner: 45 percent through the EMS MSTU, 29 percent through the Fire Fee, 16 percent through insurance re-imbursement, transport fees and miscellaneous revenues.

The BOCC has chosen to fund the fire protection portion using the Fire Fee at 50 percent of the total. That means every residential home owner will pay $151.00 regardless of the value of the home after homestead exemptions are applied. The BOCC for illustrative purposes uses the average amount of a home in Martin County. The amount as stated in the literature provided by the BOCC is $246,950, minus $50,000 in Homestead Exemptions the taxable value drops to $196,950. The 2019 MSTU, as currently constituted without a Fire Fee, is 2.6319 which equates to $518.35, which would be collected on the average home. Under the proposed formula the EMS MSTU would have a rate of 2.0137 which for the average home would be $396.59 plus the Fire Fee of $151 for a total of $547.59.

Members of the Legislative Committee of the MCTA met with Chief William Schobel and Deputy County Administrator George Stokus to discuss the Fire Fee. Most of the information cited above was provided to us by Martin County government.

We would have much preferred if the BOCC in their analysis had used the residential median instead of the average home value. The median is much more illustrative of what the typical resident would pay rather than an average.

We also believe that, by every property owner paying some amount to the cost of fire protection, all homeowners will understand that a relationship exists between the amount of service requested and that which is provided.

The Legislature, using exemptions and other Save Our Homes legislation, have placed the burden to fund local government on fewer and fewer taxpayers. A disconnect has developed between voters who demand services but are exempt from paying their share of taxes to fund such services. This leaves commercial property owners and a small number of expensive residential properties to pay for government. The use of a Fire Fee over continued ad valorem tax increases makes all homeowners pay something. This causes those homeowners to be interested in the services that their dollars buy.

In this report, the MCTA did not study what expenses are paid from the General Fund that are used in the operation of the Fire/Rescue Department. Accounting, Legal, Human Resources, County Administrator, and perhaps other Martin County Departments provide direct and indirect services to the operation of the Fire/Rescue Department. It does not appear that those ancillary costs are charged to the department. Perhaps the MCTA will investigate that matter in the future.

An assessed Fire Fee removes the pressure from County government regarding the MSTU cap of 10 mils. This Fire Fee gives the BOCC the ability to fund government and not reach the cap. The Fire Fee is a valuable tool, but it does not relieve the BOCC of the responsibility to make sure that our tax dollars are well spent. It is county management and county commissioners’ obligation to ensure that all possible savings and cost reductions are considered.

The MCTA can support the imposition of the Fire Fee if the BOCC reduces the new EMS MSTU by a corresponding amount.

 

The Stuart City Commission Election

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A few weeks back Gil Smart wrote a story in the Stuart News regarding the Stuart Commission races. He portrayed the decision as experience over youth. I see It differently. I believe that it should be about whom the Commissioners represent.

If it were just about experience, however, then I would contend that Mike Meier has more government experience than his opponent, Nick Blount. Mike is on the CRB and has had to cast more votes than Nick, who was only recently appointed to the City Commission. Meier has attended far more Commission meetings than his opponent and has met with staff on numerous occasions to understand the issues.

Blount is retired from FPL where he was a government relations executive. Meier is an owner of Ground Floor Farms where he and his partners employ close to 20 people during season. Both have served on various community associations and boards.

In the other Commission race, Troy McDonald has been a Commissioner for almost a decade. He has been on the MPO and the Business Development Board representing the City Commission. McDonald was a candidate to succeed Ed Fielding on the BOCC but dropped out of that race shortly after Stacey Hetherington filed for the seat.

Both McDonald and his opponent, Merritt Matheson, own businesses. McDonald owns a legal process serving company and Matheson owns and manages real estate in downtown. He also works at a marine store where he runs the fishing department. Merritt is a member of the LPA, which is where development projects are vetted before going to the Commission. Like Meier, he has attended Commission meetings for more than a year.

What sets the candidates apart? Three of the four are business owners and one is a retired executive, so all have shown an ability in business to differing degrees. McDonald has the most governmental experience and Blount the least. But how much does that matter? Our current Congressman had no prior experience in elected office. All three candidates challenging Commissioner Heard running for the District 4 seat on the County Commission are without electoral experience.

I have been with both Meier and Matheson when they have taken time from their businesses to volunteer in the community. They did this not as part of their employment but as part of their commitment. Both have contributed their own funds to purchase school supplies or buy a meal for someone in need.

It appears to me that the difference is that Meier and Matheson want to represent Stuart residents. They are interested in more than just the people who call Stuart home during the work day, or at night while out dining. You can see this difference in who likes the candidates respective Facebook pages and, more importantly, who contributes to their campaigns.

A Stuart City Commissioner should represent the residents of Stuart.

Commissioners are there to listen to their concerns, wants and needs. In the past year or so, this Commission has been more enamored of “the Osceola crowd” over the people of Palm City Road. Transparency has suffered. There is still no streaming of meetings. The last-minute pay increase and Blount’s appointment without allowing citizen input are emblematic of a disregard for residents. And the rhetoric about what was said on the dais doesn’t matter if their vote did not reflect the words spoken.

Experience didn’t help when the Commission chose the last City Manager. Or when they ignored the reasons so many senior staff left. It wasn’t as if employees didn’t try to bring matters to their attention. Longevity in life or in elected office doesn’t bestow wisdom or knowledge on our elected officials.

This is not a matter of experience measured in years but of integrity. Do we need career politicians even on this level? Will the people that we elect do what is best for their friends and contributors or what is best for the residents, taxpayers and citizens of our City?

Downtown Parking Needs & Reommendations

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DOWNTOWN PARKING NEEDS & RECOMMENDATIONS

 

Nothing new here! The study verifies what most of us know. It is hard to find a parking spot on Osceola at 8 pm on a Friday night. But not that difficult if you go a block or two away. The consultants have many recommendations that Stuart has or will implement. There should be better use of our tram system. Perhaps an extension of the 3-hour parking rule.

 

A vibrant downtown should be busy. It should encourage multi-modal transportation. There is a bustle that is unmistakable with the vibrancy. Stuart and the businesses of Downtown should promote foot traffic so that visitors walk past stores, window shop and purchase items.

 

Downtown Stuart has about 3 hours of prime time. After 9 pm try to get a meal. The streets are relatively empty. When the Lyric performance ends at 10 there are only a handful of places to get a drink or a late-night snack. Stuart is far from being a late-night destination. And that is fine with most of our residents.

 

Stuart does not need to grow to become another Port Saint Lucie. We do need to act more like a city. We should not have parking wag the dog of Stuart’s future. In Downtown, East Ocean and Colorado, the City should encourage new businesses and residential development. This is where young people should live, work, and have fun. Then when they are ready for their next phase of life, Stuart needs to make sure that homes are available for them to live and raise their families.

 

Micro transit, bike lanes, golf carts are just part of what will give Stuart the needed impetuous to accomplish that. The city of the future will not look like a city of the past. If it does, that city will either be in Disneyworld or be a vacant empty shell.

Political Tricks

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Florida has an overabundance of politicians, regardless of party affiliation, that are irredeemable.

Term limits are adopted and what happens? Representatives run for the Senate and Senators run for the House, making 8 years become a lifetime. Campaign contribution limits are established and then go by the wayside because of unregulated PACS. There is no end to pols telling us they are in our corner while ignoring our will. Just look at how clean our waters are.

But the most egregious trick that pols use to stay in office is the write-in loophole.

In 1998, Floridians went to the polls and passed a constitutional amendment guaranteeing all voters could participate in a primary if the winner would face no opposition in the general election. In 2000, the professional politicians, who cannot stand not to be collecting your tax dollars in salaries and perks, instituted a brilliant idea to thwart this amendment’s intent. A state agency under the guise of making it easier to run for office then revolutionized the concept of the write-in candidate.

Write-in candidates do not pay filing fees or collect signatures to get on the ballot. They usually do not send out mailers, participate in voter forums, knock on voters’ doors or do anything else a candidate would do. They are simply on the ballot to make sure that half the electorate have no say in who represents them.

Sometimes these fake candidates are the spouses or other relatives of someone running for the position. The write-in candidate will campaign dutifully with his wife while at the same time purporting to be a political opponent. This makes a mockery of our democracy. It is a sham similar to Putin’s state-allowed opposition.

This issue is not about party politics but about dirty politics. It happens with the same frequency in Democratic as in Republican races. It is a tool to keep self-serving pols in office by disenfranchising a majority of voters within the district. It contributes one more reason for citizens to be cynical about the electoral system.

Recently Sherry Plymale, a Republican, and Dave Aronberg, a Democrat, were both interested in ending the write-in. Sherry was a Constitutional Revision Commissioner and Dave a concerned citizen and elected official. They worked to introduced an amendment that would have ended the practice. It was narrowly defeated by the members on the last day of the Commission.

There shouldn’t need to be a constitutional amendment to make sure that Florida voters are not disenfranchised. That should be the job of the Florida Legislature. Oh! I forgot for a moment. The members of the legislature are politicians first and public servants second.

HARMONY RANCH COMMUNITY DEVELOPMENT DISTRICT  

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The Commission decided to take no action regarding Harmony Ranch’s application to form an independent Community Development District.

No matter what the BOCC had decided in the matter, the formation of such a district would still have to go before the Florida Land Water Adjudicatory Commission as per Florida Stature 190.

So, what is a Community Development District? It is an independent taxing district. The Harmony district is being set up so that infrastructure can be built and paid for using bonds or loans. Only the property owners within the district are responsible for the debt, fees, or tax. It is a mechanism to provide services within the boundaries of the special district.

This action would allow Harmony to build the infrastructure needed to develop the ranch. But only to the extent that it can currently which are 20-acre ranchettes. The site is still subject to Martin County’s development rules. There doesn’t appear to be a way for the BOCC to stop the district from being formed and once formed from being developed as it is currently allowed.

The question that Martin County should ask if it is wise to be developed as 20-acre ranchettes or two-acres or one-acre home sites. Any development of the 2600-acre parcel in this 1950’s manner is sprawl.   Wouldn’t it be better to develop 600 acres with the density of a town? Harmony would then have walk-able neighborhoods, offices, retail, and entertainment located where people live? The other 2000 acres could be deeded to a land trust to be left undeveloped as a natural conservation area.

Harmony would then have the same residents as they would with one-acre zoning. What is more the residents would have everyday amenities within a manageable distance from their homes. The old concepts of residential development not tethered to holistic communities is an anachronism.

The BOCC should work with the residents, landowners, and developers of Martin County to encourage smart and steady growth. If we do not begin to address this locally, the state will begin to do it for us. This may be only the beginning of Special Districts.

 

INDIANTOWN BUDGET

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Indiantown’s first budget is in. The initial millage rate will be 1.25%. The ad valorem taxes that will be collected are $2,519,993. The Village will begin to manage their storm water and discontinue contributing to that MSTU. The Village will contract with the County for waste collection, parks, and perhaps roads. The total income for the Village including fees, permits and other taxes will be $3,783,582.00.

The proposed expenses for the Village will be $1,401,992 with the balance of collections ($2,381,590) going into reserves. In a normal budget the reserves are not larger than the operating amount. But, in a new municipality without any other funds, this could be a good idea. You will never be able to take over Fire or Parks without having the money needed for equipment etc.

Before deciding whether you want to incorporate, you better be sure that the additional expense is worth it. I would venture to say that, without offering all municipal services thereby eliminating as many MSTUs as possible, having local self-government is expensive. This Council needs to move forward and become a complete government within the next decade. This requires a plan to do so. Otherwise paying a Council to make a few policy choices and a manager with one or two employees is not in the best interest of the residents.

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FRIENDS & NEIGHBORS JULY 20TH.

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VILLAGE OF INDIANTOWN:

BUDGET

Indiantown’s first budget is in. The initial millage rate will be 1.25%. The ad valorem taxes that will be collected are $2,519,993. The Village will begin to manage their storm water and discontinue contributing to that MSTU. The Village will contract with the County for waste collection, parks, and perhaps roads. The total income for the Village including fees, permits and other taxes will be $3,783,582.00.

The proposed expenses for the Village will be $1,401,992 with the balance of collections ($2,381,590) going into reserves. In a normal budget the reserves are not larger than the operating amount. But, in a new municipality without any other funds, this could be a good idea. You will never be able to take over Fire or Parks without having the money needed for equipment etc.

Before deciding whether you want to incorporate, you better be sure that the additional expense is worth it. I would venture to say that, without offering all municipal services thereby eliminating as many MSTUs as possible, having local self-government is expensive. This Council needs to move forward and become a complete government within the next decade. This requires a plan to do so. Otherwise paying a Council to make a few policy choices and a manager with one or two employees is not in the best interest of the residents.

 

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