Impact Fees, Taxes, Jobs & Housing

What do Impact fees, jobs, taxes, businesses, and the lack of middle-class housing have to do with each other?

The answer is everything!

In Martin County (including the City of Stuart), we see the world through a time warp. Many pine for the good old days that were never that good. Some may want to harken back to that time, but it is just not possible. What we need to look at is how can we adjust to a changing world in a rational and sustainable way.

In November, Florida voters approved $1.5 billion in local tax increases. That does not include millage or fee increases that do not need voter approval. In Martin County, the voters approved ½-cent sales tax increase for Martin County Schools’ capital needs and ½-mill increase in real estate taxes, primarily for increasing teacher compensation. In my opinion, both were needed, but it still makes living or owning a business just a little more un-affordable in Martin County.

Why would a business locate to Martin County? There is not much to choose from when looking for existing space. It is very difficult to build a building to meet your needs. Then, if an employer were to look at the skill sets of the local talent pool of potential employees, he or she would find very few qualified applicants in a number of fields. That holds true even if you use the entire Treasure Coast as your base to draw applicants. Why wouldn’t an employer just move to where the talent pool already exists and where it is easier to find built or to construct new space?

Even for a retailer like Costco, we have effectively created so many barriers by our rules and NIMBY mindset that they have fled. Those would have been jobs that do not require as much knowledge as most manufacturing, medical or office type jobs currently require. They would have paid $20 per hour, and more than 200 jobs would have been created.

On top of that, because of the excessive impact fees charged, the cost of construction becomes more expensive. These impact fees not only prevent the business sector from entering the market, they prohibit construction of middle-class housing. If you build a 1500-square-foot house, the Martin County impact fees are over $8000.00. That may be more than the profit margin to a developer unless the sales price is higher. The result is that more expensive units are built which leads to a shortage of middle-class housing.

There are ways around these government-made problems. How about lowering or eliminating impact fees in municipalities and County CRAs? These are our urban centers and the infrastructure is already in place. Here is where development should occur. Infill projects and more re-purposing of old strip centers and other antiquated uses should be encouraged.

Our governmental systems, including our taxes, are interconnected. If we continue to be unrealistic about how we approach government and economics, we will not succeed in the things we say we would like to achieve. Hoping for no development will ultimately lead to sprawl, which is everything we were trying to avoid. The actual result will be no jobs, little business, expensive housing, and high taxes.

Why Can’t We Just Get Along

Much has been made about the animosity that has existed between the City of Stuart and Martin County. It is true that, at times, there has been tension between the governmental entities. But why should it exist at all?

Simply put, both have forgotten why there are two governments and the differences between both.

This is an attempt to explain how the animosity occurred and what can be done to alleviate it in the future. Therefore, it is important to understand the differences between these two forms of local governments and how their roles evolved.

 

History of Cities:

Cities arose organically in the post-Neolithic Revolution period. The Neolithic Revolution was the period when humans went from hunter-gatherers to organized agriculture, including domestication of animals (around 12,500 BCE). Agriculture allowed for settlement in one spot. With an increased food supply available, man could live in higher density settlements.

Once a more stable food supply was established, there was enough of a surplus to allow a subset of the population to become specialized craftsmen. This allowed for bartering for food and other goods, leading to economic commerce which in turn produced more population density. With the rise of cities, came a formal hierarchical elite which ruled the inhabitants and made sure that the city would adequately function.

Taxation soon followed, along with the need for monumental public buildings. In order to support city resident services, different trades and occupations were developed. A system of writing to facilitate governmental and commercial records was invented. As a more complex society grew within cities, practical science and math were needed. The specialization of craftsmen led to the development of art.

In order to truly flourish, the city developed into the City-State which led to the exchange of goods and raw materials between Cities. A system of monetary valuation, economics, and the need for armies for protection and conquest arose. In every ancient civilization except for Egypt, large cities evolved and became the central point for the rise of empires.

The independent City-States of Classical Greece, led to a boom in the sciences, humanities, literature, architecture, and trade. Democracy first flourished there, as did the discipline of true city planning with the introduction of the grid plan. The Republic and Empire of Rome used that plan to lay out cities throughout the Mediterranean world. With greater urbanization came sanitation, providing of clean water, public housing, public buildings, and outside areas such as forums.

Throughout the Middle Ages in Europe, cities were the pivotal unit of government. They could be governed by a noble, the clergy or, in some instances, a merchant class.

Cities continued to increase in population and became centers of manufacturing, banking, the arts and increasingly acted as a refuge to those no longer needed in the production of food. In England, roughly 15% of the population lived in cities at the start of the 19th century. By the beginning of the 20th century, 75% did.

The first half of the 20th century continued to see cities increase in population throughout the world. During that same period In the United States, urban growth exploded as cities became more and more of a magnet for commerce and the arts. Then, with the widespread introduction of car ownership after World War II, cities (especially small and mid-size ones) began seeing their middle class move to the suburbs and become commuters.

However, in the past few decades, the suburbanization of America has slowed as people have begun to rediscover urban living. The 21st century is witnessing the rise of the international city. As the knowledge-based economy has expanded, places like New York and Los Angeles have more in common with London and Tokyo than with American cities such as Buffalo or Detroit. Just witness that Amazon choose two cities that are categorized as international cities to locate new facilities.

As the century progresses, it will be fascinating to see whether a knowledge-based economy can be transported to smaller cities. The technology to allow that to occur is available today. What we have not seen is a work force that wants to be dispersed from its peers.

 

Governance of Cities:

Cities, towns, and villages are classified as municipalities and, depending on the state, those terms are interchangeable. All local government, both counties and municipalities, are the purview of the states. Municipal governmental formation is done usually by a state charter. The authority that municipalities possess can be altered by charter and/or state statute depending on the state’s constitution.

In New England, municipalities are the prime local governing units with counties having much less governing authority than in Florida. In fact, in Connecticut and Rhode Island, counties have been abolished, except for statistical purposes. There was never a strong tradition of county government in those states since residents adopted direct democracy, having all white male landowners vote directly on issues. Even today, many New England towns hold annual town meetings during which important decisions are made.

In Virginia, for instance, there are both counties and independent cities. The 38 independent cities are not part of counties. Hawaii has no incorporated municipalities and Puerto Rico has no counties but 78 municipalities.

There are no legal distinctions in Florida between cities, towns, or villages. Local government has “home rule” authority under the Florida Constitution. However, that authority can be pre-empted by an act of the legislature that is signed by the governor. Cities are formed by an act of the legislature granting approval of a charter after a vote of the residents within the proposed boundaries. There are currently 413 municipalities in Florida.

 

History of Counties:

While cities evolved organically, counties originated from territory that was given by a sovereign to a liegeman, usually known as a count. When the Normans conquered England, they brought the term with them. Under Anglo-Saxon rule, a kingdom’s political subdivisions were called shires. These political subdivisions were formed to extend the authority of the king and were administered by those that owed their loyalty to him.

As the American English colonies were settled, the political subdivisions known as counties became established. Virginia established the first counties in 1617 in order to bring colonial governmental services to settlers far from the capital in Jamestown. Throughout the English Mid-Atlantic and South, the colonies established counties throughout the colonial period. Counties, though established as political subdivisions in the New England colonies, never attained the same authority as counties to the south.

The U.S. Constitution does not mention local governments. Therefore, under the 10th Amendment, it is up to the States to control political subdivisions within their borders. Of the 50 states, 48 have or had counties as political subdivisions while in Louisiana the subdivisions are called parishes and in Alaska boroughs.

Until the mid-20th century, counties as arms of the state provided very little municipal-type services except those things that the state was required to provide. For example, courts (usually in a town known as the county seat), a tax collector, and law enforcement through a sheriff. The state capital could be far away, and it was not reasonable for locals to travel that far.

The criteria for establishing new municipalities was generally when enough people settled in an area and the population density required that a more organized entity was needed to provide municipal services. Achieving potable water, sanitation, and better roads would necessitate asking the state to allow incorporation. The provision of these services is the root cause for the animosity between the Martin County and Stuart.

Originally county commissioners were elected primarily to take care of county roads. The county sheriff’s role was to enforce the state criminal statutes and serve warrants and court papers. Elections, courts, tax collection and the property appraiser are state constitutional officers. They are there to make sure that the people have access to state governmental services. County government was never meant to provide other services. For example in Martin County, you hear county commissioners referring to the Martin County Golf Course as a “municipal course.”

Florida was the first place Europeans visited and settled in the now-continental United States. Spain founded St. Augustine in 1565, and it is the oldest continuously inhabited city in the U.S. Throughout the colonial period, England and Spain continuously battled in Florida and the Caribbean. In 1763, Spain ceded Florida to England by the Treaty of Paris, ending the Seven Year War.

The British divided Florida into two colonies known as East and West Florida. As part of the Treaty of Versailles that granted American independence, Florida was returned to Spain in 1783. Madrid ceded the territories to the U.S. in 1821after pressure from American settlers and Washington. Florida became a state in 1845.

Sources of Friction:

Florida originally had only two counties for the entire geographical area, Escambia and St. John. All other counties were formed from these two. Stuart was a long-established town in 1925 when Martin County was created from parts of St. Lucie and Palm Beach counties. Stuart was the long-dominant county seat with about 40% of the county population in 1930. By 1960, it had 25%, and then by 2000, less than 10%. Today, the population has stabilized at a little over 10% of the county population.

Likewise, at one time, Martin County’s wealthier residents and citizens lived within Stuart. But, just as most of the population is now centered outside the City, so too have those with greater assets. The median household income for Stuart is $47,736 and in Martin County $53,244.

From the County’s inception until the 1980s, the City of Stuart was pivotal in electing County Commissioners. As the City’s percentage of population has decreased in proportion to Martin County’s overall population, Stuart has become less and less a factor in countywide elections. This loss of political power translates to a loss of governmental influence. Unfortunately, City policies that continue to limit development within its boundaries have the impact of making the City less relevant. Thereby encouraging the County to act more and more as a provider of municipal services.

However, culturally and historically, the residents of Martin County have looked to Stuart as their “city” regardless of where they live in the County. This has created an economic burden on the actual taxpayers of Stuart to provide for these perceived “citizens” and their expectations. The recent Sailfish ballfields are a good example since most of the people using them are not from Stuart.

At the same time, Martin County has been providing municipal services to unincorporated residents for decades. This has acted as a barrier to municipal incorporation throughout the County. As an example, one does not have to proceed further than the recent Hobe Sound defeat of incorporation. These two factors, history and culture and the county providing municipal services are the two main reasons for the discord.

Miami-Dade, Broward, Palm Beach, and St. Lucie counties have proportionately few residents in unincorporated areas. Martin County has less than 20% of its population living in incorporated areas. Early on, Martin County began providing services instead of encouraging incorporation. Now the formation of new cities is much harder than in the past because the main reason for them has been usurped by County government.

In the past, Stuart and Martin County have been antagonists and competitors, much as Macy’s and Gimbles were in the movie Miracle On 34th Street. Instead of toys and clothes being sold, the governments are selling water and fire services. The County has won that fight because of its sheer size and budget. In the 21st Century, county government, especially in Martin County, does not only act as a political subdivision of the State but it is the largest municipality.

 

Conclusion:

So, what outcome can be expected? In the past, both governments have been too quick to impugn the motives of the other. Further, County Commissioners did not understand and act as if residents and taxpayers of Stuart were also residents and taxpayers of Martin County. As an example If the City annexes, the County does not lose ad valorem taxes. Their General Fund continues to collect tax revenue regardless of where residents live…unincorporated Martin County or The City of Stuart.

What is not collected by the County in municipalities are the MSTUs (Municipal Service Taxing Units.) Those additional revenues are how Fire/Rescue and Parks, for example, are paid for in unincorporated Martin County. Since these services are not provided by the County in the City, they can’t be charged through the County’s General Fund.

One of the sources of the friction is how the cost of providing the services is allocated between the specific MSTU and the General Fund. For instance, when calculating the Fire/Rescue MSTU, are the costs such as Human Resources or the Legal Department’s time allocated at all? If so, whether it is an accurate amount charged to the MSTU. If not, then the General Fund would contain costs associated with providing the services that should not be included. There are several other items, such as impact fees, that have contributed to the antagonism.

However, there are bright spots that have appeared in the last year. Both City and County are willing to look at issues in a more holistic aspect. Now most County Commissioners do not believe that annexation in and of itself is necessarily a bad thing. In fact, judicious use of that tool can be beneficial to both entities.

If you believe that western Martin County should keep the ranches and farms and not succumb to sprawl, then development needs to occur in Stuart and the CRA areas. There are literally hundreds of acres within those areas that can and should have infill projects and redevelopment of under-utilized sites. Density belongs within cities. Many of the problems we see in Martin County in this respect are brought about by the County trying to provide municipal services to suburban and rural areas while the City has a fear of growth and continues to act as if Stuart was the same farm town it was 70 years ago.

For example, Martin County’s transit system is underutilized because it is an urban mechanism for moving people being used in a suburban and rural setting. The routes are too few and the scheduled times of service make it unappealing for most people to use. At the same time within Stuart, their micro-transit system operates not as a true transit system but as a shuttle between parking lots and Downtown. Because of the lack of funding, it does not service the entire City. This is a good example of two systems not working very well because one lacks passenger density and the other lacks the money to operate in a city setting.

These and other problems could be remedied If both can acknowledge their different roles, then every taxpayer in Martin County would benefit.

Sail Fish & Development

Friedrich Nietzsche was a 19th century German philosopher.

One of Nietzsche’s ideas was “eternal recurrence,” also known as “eternal return.” The concept, that incidents in life continue to repeat, was proven to be correct by the Stuart Commission when they did not decide what to do for the umpteenth time with the Sailfish Ball Fields. For a decade, the City has been trying to determine whether those fields should be developed. To date, there still is no clear way forward…. only the same outcome of indecision.

Much of the problem seems to be that there is no systematic approach. Government, for all its vaunted keeping of records of past actions or inactions, refuses to ever read and learn from them. Consequently, the past is never studied by either staff or Commissioners to see what transpired earlier. While Nietzsche’s concept of “eternal return” is esoteric, the Spanish-American philosopher, George Santayana said something more apropos: “Those who cannot learn from history are doomed to repeat it.”

By not knowing what transpired earlier, there cannot be forward movement. At the meetings, the City Attorney attempted to give a history to the Commission, but it was not in prepared remarks and was superficially insufficient. Even the two Commissioners who had sat through discussions in past sessions appeared not to have remembered what was previously discussed and voted upon.

So, once again, there was the specter of Little Leaguers and their parents, the vast majority of whom do not live within the City limits and pay no Stuart taxes, crying about “their” ball fields. I resent the fact that, as a Stuart resident and taxpayer, I must subsidize the recreational pursuits of children that live outside the City. There are hard costs of $85,000 to maintain those fields which are not even under the City government’s control.

It is nice to hear about the past at Sailfish and the “poor” kids from Jensen Beach and Palm City waxing poetic about their baseball. The parents of those children pay taxes, not in Stuart, but to Martin County to provide recreational fields. So, why then, should City of Stuart residents pay for ball fields when only about 10% of the players are residents of the City? For the Commission to continue to allow this is ridiculous and a gross misuse of tax dollars.

The Commission and staff lost sight of the fact that there should have been no discussion about whether to sell those fields or not at the meeting. That decision was already a foregone conclusion, or so it would appear to any business person when the Commission decided to put out an RFP for developers to build there. Both the development applicants have spent considerable time and thousands of dollars to put these proposals together. Should that effort and expense be treated in such a cavalier fashion? I don’t think so.

Staff had an obligation to lay out a coherent vision of what was to be achieved by the Commission that night. If they had done so, then the Commission would have had the obligation to check the boxes outlined. Instead, the entire matter devolved into a morass of indecision. There were no rhyme or reason about how to proceed. The Commission concluded to once again make no decision.

Before this moves forward again, certain questions need to be answered. The first is whether the Stuart Parks and Recreation Department will provide recreational programs. Presently, besides the after school and summer camp program, programs are de minimis. In my mind, both are needed and should continue but so should sports, both organized and ad hoc.

Currently the role of organized baseball is filled by Martin North Little League and their sub-programs. According to the information provided by them to the City, there are currently 20 City of Stuart children enrolled in their league out of the 192 kids in total. Stuart tax payers are subsidizing the fields to the tune of $85,000, or $4,250.00 per Stuart kid. That is more than half the amount per capita that the School District pays to educate a child.

When I was a youngster there was Little League and Pop Warner football. I had friends and classmates that belonged to those programs. Most of us, however, didn’t play in organized sports. We showed up at the park and played ball. There were city recreational staff available to watch our behavior and hand out equipment, but you could just drop by and play ball on an ad hoc basis.

Life is different now.  I wonder if kids would come if they knew they could go to 10th Street and be given a football or basketball and be able to play ball. As to organized recreation, there is nothing wrong with our own City staff providing it for Stuart children.

Let’s spend Stuart tax dollars for Stuart kids.

In order to provide organized recreation, the City would need to appropriate some money for the Recreation Center field, as well as for equipment and additional staffing. The staff needs to present to the Commission a modest plan on how to pay for this. It does not need to be grandiose with 4 baseball fields, a soccer field, and a football field. The important thing will be to make sure that there are adequate programs for all Stuart kids to participate.

The Recreation Center is not just for East Stuart but for all of Stuart. It needs to accommodate residents from Bahama Street as well as Manor Drive. A City of Stuart’s size cannot afford to have more than one Recreation Center and 10th Street is it.

The second matter that needs to be addressed is the Public Works Garage. It is not practical to decide about moving Public Works without knowing the cost and, just as importantly, where it is going. Supposition and rough estimates may result in faulty decisions. It should be up to the Public Works Director and City Manager to devise a budget and location before any further thought is given to selling either the current location or the Sailfish Ball Fields.

Third is the question of housing. Staff and the Economic Council gave a masterful presentation of declining City economic projections. The Finance Director provided a very significant statistic. The City of Stuart is still not collecting the amount of ad valorem taxes that it did in 2006. The real estate taxes currently collected by the City of Stuart are only half the amount needed to pay the public safety budget.

The tax bill for a median condo is $266 and single-family home $494. If you count every parcel in the City, 610 parcels pay nothing, 700 parcels pay $100 or less with 3102 parcels paying $500 or less. Yet, the cost per parcel for City services is $700. If, the City were a business, you would not like the trajectory.

Our housing stock is old. There is a useful life determined by both functional, economic, and physical obsolescence. Many of our homes have reached one or more of these forms of obsolescence. A home that is 60 years old but in good condition could be just fine for a resident that moved into the home in 1958 when it was new. That same home, even in good condition, would not be attractive to a 30-year-old because some of the features of that home are no longer functional for today’s families and the improvements needed cannot be economically justified.

There is a dearth of residential properties. From rental stock to owner occupied, there is not enough product. This results in higher prices being charged either to lease or buy in the Stuart market. The only way to solve the problem is to build new housing of every type. At last week’s Commission Meeting, a planner stated that there was a shortage of 4000 units in the City. That may sound high until you factor in the 21,000 people according to a DEO report that commute to the City every day because they either can’t afford to live here or the type of housing they are looking for is not available.

Does that mean that the City needs to make sure that there are units available for under market prices? I would say the answer is yes and no. A city of Stuart’s size does not have the resources or the expertise to provide those subsidies of under market rate housing. What it can do is make product more available by increasing supply through smart development policies.

I hear over and over that the proposed housing is too expensive and that it will fail. What exactly does failure mean? Take the worst-case scenario, which is nothing will be rented for the price needed to pay the mortgages and taxes. Then two things will occur. The bank will foreclose and sell the project to someone else at a reduced amount, and then the rents needed to carry the project will be less. The market will find what is known as equilibrium.

At the same time, if the project is successful from the very beginning and the rental rates are achieved, then pressure is lessened on the existing housing stock. The supply has increased but the demand will remain the same allowing those older units to rent or sell for less. The best thing that can happen to Stuart is to increase supply. In the rental real estate market, a 5% vacancy rate usually equates to equilibrium which means that supply and demand are in sync.

So, should the ball fields be developed? The answer is yes if the above items occur. It is imperative that the City not allow nostalgia or fuzzy thinking to influence what is best for Stuart. If you want to have an economically diverse and generationally friendly place to live and work, you cannot keep the existing quid pro quo.

As to “workforce” or “affordable” housing, I would like to see one example of a city of the size and with the economics of Stuart in the housing business. There aren’t any. You cannot compare Stuart to New York, Miami or even West Palm Beach. Those cities’ size and tax base afford different opportunities.

Here is what I believe can be done. The City administration can put together a pilot program of duplexes in East Stuart with one side owner occupied and the other a rental unit. They can be built on smaller lots. This type of project would encourage home ownership and demonstrate feasibility.

In respect to the ball fields, when the City does an RFQ, it can ask that a limited number of units be kept to 70% of the average medium income. The project needs to be mixed-use in nature. It needs to be open with residential and businesses fronting all streets including Martin Luther King Blvd. This should be planned as an economic generator for East Stuart, not a gentrification project.

There is a way forward, but it must be logical and methodical. The City Manager needs to take steps now. The Commission kicked this down the road for 90 days. That was idiotic. Once the steps that I outlined are taken, then the RFQ process should begin again, but only if the Commission realizes that, once an RFQ is released, the decision has been made to sell those fields. It cannot be taken back. At Monday’s meeting, City Manager Dyess said that the Commission needed to get off the merry-go-round. He was right.

Edmund Burke, an 18th century member of Britain’s Parliament, a philosopher and historian wrote: “When the leaders choose to make themselves bidders at an auction of popularity, their talents, in the construction of the state, will be of no service. They will become flatterers instead of legislators; the instruments, not the guides, of the people”.

It is time the City Commissioners show leadership for the good of the City of Stuart. They were elected to make decisions, not sway in the winds of fickle popular opinion.

Stuart Commission Needs More Deliberation & Fewer Motions

During Commissioner comment, Mayor Leighton read what I believe was a press release from Congressman Mast’s office condemning the South Florida water Management District’s Board for extending a lease on land to a sugar company where the reservoir will be built south of the Lake. The press release calls for the Board’s dismissal. The lease extension will run through March 31st, 2027.

 

With another lost summer behind us, I can more than understand why any hint of delaying the reservoir would evoke anger. But an elected deliberative board needs to have all the facts before doing anything. In this case that was far from true. In fact, the City of Stuart Commission, through naiveite and political manipulation, became a pawn in a struggle where Stuart does not belong.

 

The lease extension will run for an additional 8 years through March 31st, 2027. If that in any way would delay the construction of any part of the reservoir then perhaps it would be understandable that Stuart should be upset. However, in this case, if anyone read the lease extension before reacting, they would have seen that after the first 20 months the District could terminate the lease with 120 days’ notice.

 

At present, while it has been approved by President Trump, money is not expected to begin flowing to the project for several years. What the District did was smart stewardship by keeping the property producing revenue while we continue to wait for Washington.

 

What the Stuart Commission did was act not only foolishly but with hubris toward another governmental body. It is improper for an elected body to demand the removal of another governmental body not under their control. How would the City Commission like it if the County Commission demanded that the City LPA members be dismissed because they did something that the BOCC didn’t like?

 

It has become painfully obvious to this observer that the City Commission, which is a deliberative and policy board, has become “motion crazy.” Commissioner comments are the time when individual Commissioners can report on their activities and ask that staff look into a resident’s complaint. Turning it into a motion frenzy to have pet projects of Commissioners approved leads to bad policy and poor decisions.

 

If Commissioners wish to have a matter discussed, then they should speak to the City Manager and have it placed on the agenda of the next meeting under deliberation and discussion. In that way it can be fully vetted, and every Commissioner can have all the facts before action is taken. What is going on now is a Commission free-for-all. This is making the Stuart City Commission look amateurish and easily manipulated.

 

Commissioners need to realize that they should not let their personal beliefs interfere with what is best for the City. They should not be manipulated by each other or outside influences. There is almost no instance where a matter can’t wait until another meeting. Good government demands a deliberative stance.

 

Our two newest Commissioners ran on transparency. It is anything but transparent to vote on something without proper notice being given for the public. Staff has the obligation to make sure the Commission has all the information before action is taken. This Commission needs to start acting as a mature deliberative body.

 

What Government Services To Provide & How To Pay (Part 2)

A month ago, I wrote the first installment of a two-part series on how we pay for government services and what services should government provide.

The first piece concentrated on which services to provide and the difference between what the government should do and what private industry can do. This installment will concentrate on how society pays for those governmental services.

In examining what services should be provided, it became obviously clear that government does certain things quite well and is the best entity for doing those things. I used the example of law enforcement. Consistent and fair policing is a much more probable outcome when government provides it than if the private sector does. Further, the profit motive would preclude the services being provided as economically and as professionally as the public sector.

Unlike the private sector, when government produces a product, it needs to have taxpayers approve of the product — whether they use the service or not. So, while companies can tailor their products to the individual consumers that will buy those products, government does not have that ability. It is a one-size-fits all approach.

Forty-one states have income taxes. Florida has a prohibition against having one in its constitution. This has been a boon to the state’s economy since this is a reason people, especially retirees, re-locate here. Overall, businesses have lower taxes than the national average. Property taxes are higher than average for the nation.

Through their legislature, Florida voters have decided that social services are not where their tax dollars should go. Per capita spending is approximately $1500 per year, including education. Of course, because we spend so little on social services including education, many Fortune 500 corporations have chosen not to locate here. Our educational spending is less than $8800 per student, including administration and security, and this shows in our lower overall national rankings.

So how do we fund our government? On the state level, it is through the sales tax. Roughly 93% of the 6% that is collected on most sales remains in Tallahassee. Local government, such as counties and municipalities, rely on property taxes.

The Florida Legislature has been quite cynical in how they have achieved “tax cuts.” Tallahassee has primarily done so on the backs of local government.

Real estate taxes are one of the few sources of revenue that the Florida constitution permits local governments to levy without legislative approval. However, through pre-emption, edict and constitutional amendments, that ability has been extremely curtailed over the past decade. In other words, “tax cuts” given by Tallahassee have been done through limiting local government’s ability to levy taxes. If Tallahassee wanted to give a tax cut, it could lower the sales tax rate, but then their own pot of money would have shrunk. Instead, they shrunk local governments’ pots.

As counties, school boards and cities have seen their revenue streams constrained, Tallahassee has continued to pass along unfunded mandates. The largest one this year was school security by mandating a law enforcement officer in every school. The state has also cut funding for various programs that will result in programs disappearing or localities dipping into shrinking funds to pay for them.

Martin County already has higher than average real estate property taxes, as compared to other Florida counties. This is due to a lack of commercial and economic development, along with a dearth of residential growth. This was proven most recently with our discussions to keep FPL. The company has an option to relocate to Collier County, which has a lower tax rate.

The level of government that Martin County and its municipalities can afford to buy shrinks with each new property exemption or pre-emption. Many of our local elected officials believe and act as if there is an endless supply of tax dollars to buy services, as was witnessed by the recent golf course Shangri-La discussion. There is a disconnect between wants and needs and the ability to pay for government.

We are fast approaching a point where government departments, such as Parks, will have less and less in order to fund public safety functions. The Commission needs to begin curbing the growth in those budgets. It is easier to do so in Fire/Rescue since that is a department under their direct control. The Sheriff’s Office is constitutionally mandated and, while the funds are allocated from the County, the BOCC has little to say about the budget’s makeup.

I believe the County made a terrible error by not instituting a “Fire Fee” this year. The methodology was flawed, but the principle involved was not. That Fee would have accomplished three things. First, the overall Fire/Rescue MSTU (Municipal Service Taxing Unit) would have been lowered. Second, the nearly 20% of homeowners that pay no real estate taxes would have contributed something to their protection. The third, and perhaps most important, reason is that the public would have a better understanding of how much the Fire portion of the budget is. This would have been an eye-opener for many. They would also understand how much it costs to provide that service. The Legislature should also give localities the option of having a “Law Enforcement Fee.” This would bring more scrutiny to Sheriff’s budgets.

The State of Florida and Martin County are in denial, as is much of the rest of the nation, as to the costs of government. Our nation is facing trillion-dollar deficits during a booming economy. Those deficits will surely increase once a slowdown occurs. Unlike Washington, state and local governments can’t run deficits. Martin County is already experiencing a $200 million or higher infrastructure maintenance backlog.

The boomer generation I am part of has done a poor job in taking care of government finance. We have buried our heads in the sand. We have lived on a credit card that, in many cases, has already reached its limit. Unless we have a serious national, state and local conversation on what government is expected to do and how it is to do it, we will continue to erode our fortunes. No amount of sloganeering and pandering to the crowd will place us on a solid financial footing.

Dyess Essay On His Vision for Stuart

The city of Stuart has been in the center of my life for 49 years. From fracturing my arm on Commissioner Matheson’s street to getting hauled to the police department for playing cops and robbers in the defunct development that eventually became the Town Homes of Stuart, I have seen this city evolve. That evolution has been mostly positive surrounded by an environmental disaster. As a kid we would sneak on the dock behind someone’s house off North River Point Drive and jump in the river or watch the manatee. As a teenager we would go to the rope swing in the south fork or ski in the north fork, but you don’t see those activities anymore. Even with the water issues we have now I still believe in this city and see a great future for Stuart.

In the next five years I would like to accomplish Stuart’s position of relevance in the county again. We use to be the largest community in Martin County and received positive political attention due to our voting; now we are almost the smallest in population which makes us irrelevant to the county. As the county has grown around us we have allowed opportunities to escape us. I am not a kingdom builder, so it is not about wanting to become a large city, but rather a sustainable city that has a place at the table. I would also like to focus on the live, work, play dynamics of our community. I see opportunities for an open space promenade in downtown for gatherings and events as well as a restructured 10th Street facility that provides athletics, education and recreation. We are actually not that bad in the work portion of the model, but we could do better with trade opportunities and education in our low income areas. As for live, we need some housing work. We have an inventory of very high priced homes and then an inventory of very low priced homes and very little in the mid-market arena. I am patiently waiting for the Azul project completion to see how that apartment population dynamic works in downtown. Maybe cottage homes is the answer, I’m not really sure yet.

I could get in more depth on the specific items I see for Stuart, like a splash pad but it’s really not my vision that matters the most. It is yours! My job is to carry out the vision and policies of the commission and if the things that I see for Stuart differ from the commission then the commission’s ideas will be embraced by me. Getting five individuals to agree on exactly the same thing is very difficult, so I understand there will be times that some things that happen will not sit well with all five, but the majority rule will dictate. I know this isn’t exactly what you had in mind when you asked me to write about where I saw Stuart in five years or what I want to accomplish in that time, but I truly do believe in carrying out the goals of the commission who should be carrying out the desires of their constituents.

I have found over the past four months that this is not an easy job and it is very demanding, but I am up for the challenge. I am a doer, and like to get things done rather than meet about things for months on end. Government is great at kicking the can and I believe if the can needs to be kicked to often then we don’t need the can to begin with.

Remarks Made to Stuart City Commission on a Brightline Station

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

Hobe Sound Remains Unincorporated

We haven’t seen much analysis of why the incorporation of Hobe Sound was so strongly defeated.

Perhaps much of it has to do with the proponents not making their case adequately. If you are proposing a new government, you need to tell the people why. The answer cannot be, “We want to keep everything the same.” The plan was to keep the Sherriff, keep Martin County Fire/Rescue, and have the County provide most of the services as they do now. What was the purpose then of incorporation? Why ask the citizens to pay more in taxes if you are not giving a definitive benefit?

As Indiantown is finding out, all government has a cost. I believe in government being as local as possible. Government should function as a government providing, at the minimum, all municipal services except perhaps public safety. And, in a town of Hobe Sound’s size, even public safety should be in the mix in the future.

With the ascension of Harold Jenkins to the BOCC, people felt that their interest was being represented. Jenkins did support incorporation. This would have been a done deal anywhere else but in Martin County. Unfortunately for the proponents of incorporation, Hobe Sound is in Martin County.

 

Brightline Is Coming

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.

From August 25th Friends & Neighbors

PINELAND PRAIRIE

 It appears that no one has a bad word to say about Pineland Prairie. Approximately 20 people spoke in favor at the meeting. From Jackie Trancynger to the Guardians to the head of the Builders Association, the speakers including myself urged, approval of the development. And why wouldn’t Martin County rally around this plan? It creates a walkable village and leaves 70% in open space or for schools.

This plan is a big PUD. The great thing about PUDs are that the Commission and staff can help direct what and how the property is developed. This isn’t proscribed to an extent that doesn’t leave an opportunity for all stakeholders to have a say. In my opinion, all development should be PUDs. So, you would think this would be a perfect opportunity for any Commissioner not just to scowl and criticize but try and incorporate their ideas and objections into the project.

In this instance I heard the complaints, but no one said I would like this or that included or eliminated. This, I believe, was a mistake on the Commission’s part. Mr. Kiplinger and his development team took the time (over a year) to meet with all. This was any and every Commissioner’s chance to have input into the development.

The final vote was 4-1 to approve with Commissioner Heard dissenting.

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