Stuart & Housing

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What is the most pressing issue that the City of Stuart faces? It is not where or if we need a new City Hall, the fate of Historic Downtown or whether the hospital can build a 150 foot building. Our most important problem to solve is the lack of housing within our borders. Quite simply, there is not enough supply for everyone who wants to live here. Stuart does not have enough rental units, houses and condos. Further, to use a real estate term, much of what we have is physically, functionally and, to a less extent, externally obsolete.

Politically and socially we have allowed the City to stand still while Martin County, despite its reputation for limited growth, has grown exponentially around our borders. In 1940, the City had nearly 50% of the total Martin County population 2,912 people to 6,295. In 1960 we comprised 28% of the total with 4,791 people to 16,932. By the turn of the century Stuart comprised 11% of Martin County’s residents with 14,723 to 126,777. Today, we are still roughly 11% of Martin County’s population.

Martin County has grown at a much faster pace than Stuart in the past 70 years. In the next decade, the population of the County will probably continue to grow faster than the City’s. We are still a hub for commerce and residential living but not to the extent we were in the 1960s.   With the increasing suburbanization of Martin County, Stuart became not the only center of Martin but one of several competing centers county wide. One example would be the development of Palm City, which is part of unincorporated Martin County, from the farmland and ranches 40 years ago to a mostly suburban area today with a population of nearly 25,000 people as compared to the City of Stuart’s roughly 16,500.

Many people claim that the City should remain static or in a time warp. Unfortunately, if we do suspend time, we will not be able to have that very uniqueness that we want to maintain. Stuart cannot be a city unless we act and behave as one. This requires providing urban services under our jurisdiction so that we can maintain our businesses, residents and professional offices far into this century.

By not providing new housing, we force people to live outside our boundaries. A recent Florida Department of Economic Opportunity study showed that more than 21,000 people commute to work in Stuart every day. If we could capture just 25% of these commuters and their families, then our population and our tax base would increase by 50%.

By growing our tax base, we would shrink individual taxes. Would there be additional employees? Of course a few more would be added, though not many more since we are compact in size. Our infrastructure such as roads and water are already in place. As a city, we do not have the sprawl that has accompanied growth in the rest of Martin County. We are ideally situated to take advantage of life in mid-21st century America. The aging of our population and desire of our younger people to reside within cities gives us an ability that other parts of the County do not possess.

Stuart has an opportunity to maintain our wonderful charm and truly become a modern gem. We need to have the vision to do the things necessary so that we are not left behind. Stuart needs to reclaim its birthright of being the center of life on the Treasure Coast. To do that, we need more than a one block downtown. We need to actually have several areas of residential and economic viability. Many parts of our City are under-utilized. I will explore more of Stuart’s options in my next blog.

Our Waterways…No Quick Fix

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Our Congressperson Brian Mast will introduce two bills when Congress reconvenes in September that, if passed, will help to make Florida waterways better. (You can find outlines of the bills at: http://www.tcpalm.com/story/news/local/indian-river-lagoon/health/2017/08/23/u-s-rep-brian-mast-calls-federal-study-action-stop-south-florida-algae-blooms/592994001/.)

Florida Senate President, Joe Negron, sponsored legislation to build a reservoir south of Lake Okeechobee which was approved by the Legislature and signed by the Governor.  Whether you are an Independent, Republican or Democrat, we should all applaud and support these efforts.

The Indian River Lagoon and all Florida waters need Floridians pulling together to accomplish the task of improving our environment. There is no right answer or easy solution. It took more than a century for Florida to make this mess. It will probably take that long for our waterways to be restored. Federal, State and local governments must work in partnership. Co-operation with all interest groups will be the only way we shall succeed.

As a member of the Indian River Lagoon Council Management Board, I have become more knowledgeable about the larger picture we face, and it is daunting. The I.R.L. is a National Estuary Program that receives most of its funding from the Federal Government. The lagoon spans 156 miles from Ponce de Leon Inlet near New Smyrna Beach in Volusia County to Jupiter Inlet, on the southern border of Martin County.  Lake Okeechobee and the St. Lucie River are only a piece of this larger puzzle. Martin County and Stuart’s water quality are dependent on much more than just any local situation or solution.

At some point in the future, whether it is tomorrow or next year, another algae bloom will happen. When it does, let’s not look for scapegoats to blame. As I have written, everyone must work in tandem. In some capacity, every Florida resident, business person, farmer and visitor has contributed to the far from pristine condition of our waterways. It will take each and every one of us to aid in our recovery.

Ollie Harvey Bridge Builder

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My friend died yesterday. She lived a blessed life. Her goal in life was to be someone who built bridges. Bridges of love and bridges of hope. She devoted her life to children especially after her own son died. There was nothing in her demeanor to suggest her capacity for the love she had in her heart or the goodness in her soul. Ollie Harvey built bridges.

She and her husband, Philip, used their own money to start an after-school program for the children of East Stuart who needed her most. She built a bridge to my wife, Polly, and I to assist her with those children. She built bridges to many people. To Ollie, the color of a person’s skin was not what was important. What was important was the good that was in their hearts. She built bridges so that many people could help her save the children of East Stuart.

I am proud that I knew her and I am bereft now that she has gone. She taught me to open my heart and with her loss I now have examined my soul. I and many other people will carry on her dream of building bridges. I hope to continue building bridges to those children of East Stuart, to all the people of Stuart just as she would want. Just as she taught me to do.

Ollie was a devout Christian. She never doubted that the Lord had guided her on this path. My last word with her was a prayer to Jesus. Her faith gave her the will to build bridges. I admired her tenacity, her grit but most of all her love. What can be a better epitaph than Ollie Harvey, Bridge Builder.

Stuart’s 2018 Budget Should be Studied Carefully

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In my last post, I wrote how the state budget and mandates were affecting local municipal budgets. In this post, I want to discuss Stuart’s upcoming budget for fiscal year 2018. When I look at the trends, I am not pleased with the direction we are heading. I think the City is not looking toward the future but is rather planning no further than the present.

When I look at the total expenditures for 2018, the overall budget is increasing by $172,760. This is a modest increase. However, when delving into individual line items, a different picture emerges. Personnel costs are increasing by $780,064 while operating expenses are decreasing by $169,546 and capital outlays are $483,327 less than 2017. This frightens me because once employees are given raises; it is very difficult to cut pay. Instead, to close future budgets, you lay off employees. Though we do have reserves for the purchase of capital items, once exhausted those funds will have to be replenished.

On the income side, the City has reduced the millage rate a negligible amount from 4.552 to 4.5. This results in a savings of $5 for the median homeowner. The total amount to Stuart’s overall revenue is $110,000. It should be noted that because of increased value of properties, Ad valorem is still projected to increase by $268,000 in 2018. With this projected increase, the City is still collecting $1,000,000 less than it collected in 2009 in the amount of $9,255,000.

As I wrote in an earlier post, next year there will be a new additional $25,000 homestead exemption on the ballot. According to the Property Appraiser’s projections, if passed, this exemption will further decrease Ad valorem tax by an additional $157,000. Further, at some point there will be another recession which will lower property values resulting in less real estate taxes being collected. Because the legislature has enacted complicated rules having to do with how much taxes and millage can rise at any one time, we may once again be forced to impose severe layoffs and reductions in maintenance to our roads and parks because of the City’s inability to levy increases.

I would have preferred that Stuart not cut the millage and instead place the $110,000 into a “rainy day” fund. The median savings per household of $5.00 is in today’s currency the cost of a cup or two of coffee. Further, because of the loss of the $187,000 in rent from the vacating 7-11, any increase in taxes due to property value increases is negated by these two offsets. Unfortunately, I was the only commissioner that thought it imprudent to lower the millage rate this year.

It is my belief that governments should not plan budgets based on political or short sighted goals. Rather, our goal should be to keep both services and taxes on an even keel. Smart and responsible fiscal policies need to cause the least disruption and uncertainty to our taxpayers, residents and businesses. The more we can do that, the better we are serving those stakeholders.

Government Budgets And Taxes Are Interrelated

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I intended to write about Stuart’s budget for the coming fiscal year. When delving into the numbers, I realized just how tied our budget is to the state’s budget, and, more importantly, to their encroachment on how we determine ours. Much of the governmental services we provide are predicated not only on what funds they allocate but what they permit us to do. The more controls that are placed on municipal government by Tallahassee, the less that municipalities can respond to the needs and wants of local citizens.

For the past 40 years, we have constantly heard that taxes are bad. Taxes in and of themselves are not bad. It is the way that government uses the tax money that is either bad or good.  The old accounting maxim, “value received and value parted with” should be what determines if a service is good or bad. There is no such thing as services being provided free of charge. Somewhere and somehow, everything must be paid by the taxpayer.

As taxpayers, we pay our taxes to a variety of governmental entities. About 35% of Stuart’s revenue comes from real estate taxes. The rest of our revenue is everything from grants to our proportionate share of the communication services tax and sales tax to rents collected from city-owned leased property.

The State of Florida keeps roughly 93% of the total sales taxes collected throughout the entire state. This amount comprises a little over 60% of Florida’s total revenue.  When there is a sales tax holiday, that really is a tax cut that the state mostly finances.

Tallahassee has another way to give “tax cuts” without using any state revenue. Every time the legislature and governor pass and sign a law that restricts local government’s revenue stream, they have in effect taken credit for a “tax cut” but not allocated any funds to pay for existing services. Local governments must still provide police, fire/rescue, roads and parks. We just have one less fiscal source to help pay for them. For example, by lessening the percentage of the communication services tax charged on phone bills, municipalities must find the money elsewhere to provide services.

Another bill that the legislature was so very proud of passing last session was a constitutional amendment for an additional $25,000 homestead exemption. If passed by 60% of the voters in 2018 (which seems likely), the legislators will be credited with a “tax cut” without any state funds being used. The result for Stuart will be about $160,000 less in revenue. Do we cut services or raise other fees and taxes because of Tallahassee’s largesse?

At the same time in the past several years, Tallahassee has cut back on the funds that it sends to us for roads, sewer expansion and other grants. They expect municipalities and counties to continue providing these services but limit the sharing of tax dollars, restrict the ways we can raise money and pass additional mandates. This cannot continue without municipalities cutting basic services.

What everyone needs to understand is that nothing is free. Isn’t it better for Tallahassee to stay out of our local affairs as much as possible, and let local government determine how revenue is raised to provide the services that their citizens want? The Legislature needs to stop interfering and begin listening. A legislative committee chairman from Panama City has no idea what a resident from Ocean Breeze needs or wants. Tallahassee should take less from our pockets and stop telling us what and how to provide for ourselves.

Chicken Is On The Menu

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Chicken is back on the menu…or in this case the agenda. Commissioner Krauskopf, who now believes that the ordinance should be rescinded, is bringing it back a few weeks after voting to approve a 2-chicken limit. The more than 2-year saga into backyard poultry has shown the inability of our Commission to even make a simple decision. It is not about whether chickens should be allowed or not (more about that later) but the very act of how decisions are made or not made. The decision on backyard chickens is illustrative on how the City functions.

It is my recollection that the reason this ordinance was even brought before the Commission more than 2 years ago was because the former City Manager wanted it. I hadn’t heard of any ground swell of support except from Ground Floor Farms. At that time, I voted for only Ground Floor Farms to have the birds. It was to be brought back after some time had passed to see if it should be extended. From the very beginning, Commissioners Krauskopf and Clarke were in favor of allowing backyard chickens.

During the intervening time, I investigated other cities that had the animals and visited Ground Floor Farms a number of times to see for myself. I concluded that chickens were harmless. While some would have you believe that they are a vector for disease, I have found no definitive scientific proof. As I have stated before, I have a neighbor with an aviary that is legal. So, then, why not a few chickens? If 30 or 40 families want to have fresh eggs, then I favor allowing those families to do so under controlled circumstances.

I have come to the conclusion that it isn’t about the actual chickens but what they have come to represent. Young families and millennials that want a more natural way of living versus some in my generation of boomers who don’t. There is a belief by some that backyard chickens represent poverty and by having them in their neighborhoods, their properties will be worth less. And like so many things, there is a fear of anything new by some.

However, whether to allow the legal keeping of chickens should not be this gut wrenching matter that the City of Stuart still cannot resolve after more than 2 years. This indecision is emblematic of how we cannot come to a consensus on almost any matter. This is a make-believe controversy that is not worth the time that has been devoted to it. So once again, chicken is on the menu of the City Commission.

Martin County’s Infrastructure Sales Tax

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The county has introduced an infrastructure sales tax ballot initiative for the August election. If passed, the measure would add an additional penny per dollar to the current 6% sales tax rate. At present, 61 of Florida’s 67 counties levy an additional sales tax. This makes the local option more the norm than not. The same products (such as food and medicine) would be exempt from the additional sales tax. I had hoped that the parameters on what the county could spend the proceeds would be limited to water and road projects alone.  But, even without those limitations, I am still in support of the measure since Martin County needs to address our road and water project backlog immediately.

The County may seem like it is in a rush to have a vote without adequate time to educate the voters as to the merits of the proposal. Unfortunately, they are up against a legislature in Tallahassee that wants to strip the ability of counties to levy such a tax even after a vote of local citizens. Last session, bills were introduced to do just that. Martin County anticipates that the legislature will introduce such a bill in the upcoming year and perhaps pass it. This is what requires Martin County to have the measure on the ballot as soon as possible. Such are the unintended consequences when the state meddles in matters of local control.

As to the need for Stuart to have the sales tax enacted, it goes without question that without these funds, there will hardly be any capital improvement projects going forward. The City has a population of roughly 16,500. On the average work day, 21,000 people commute into Stuart to go to work and that does not count the many more that come to shop and dine. While we need to have adequate emergency services, roads and other amenities to accommodate this influx, these visitors pay no direct taxes.

No one enjoys a tax increase. However, we do want government to provide services and amenities. They cannot do so without adequate funding. That is why the passage of this additional penny per dollar spent is so important. As a county resident, I hope that Martin County will use the funds as intended. As a Stuart commissioner, I will only vote that the funds are used for projects in the best interest of our residents.

The Treasure Coast Goes All Aboard

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The lawsuit initiated by Martin and Indian River Counties against Brightline and All Aboard Florida was dismissed last week in federal district court. The dismissal ruling occurred because in 2014 the federal government’s loan guarantees were withdrawn from the sale of the bonds. Those bonds were to finance the West Palm Beach to Orlando leg of the rail improvements. The court ruled that the counties reasons for the lawsuit were now moot.

Brightline continues to insist that it will move ahead with its plan of running trains from Miami to Orlando. They will begin service from West Palm Beach to Fort Lauderdale in July. Then, in September, service will be extended to Miami. Perhaps in the dense population corridor between Miami and West Palm Beach another rail option besides Tri-Rail is needed. This new venture faces a similar problem to Tri-Rail. If your final destination is not by the station, then how do you arrive at that final destination? You can call an Uber or a cab, but that is another expense. The total dollar amount needed and the time it takes door to door will influence whether you drive or not.

As to going between Miami and Orlando, not only does the same problem occur when you disembark at the station, but the ticket and other expenses are much more than driving a car. No city in Florida has the population density that New York, Boston or Washington has. Those cities also have mass transit systems that leave the train traveler with options once they disembark at the station.

There is currently no government unsubsidized rail service in the United States. Even if you go back to the 19th century when rail was in its heyday, railroads were constantly going bankrupt and being reorganized. Their profits came from the vast amounts of land the government gave railroads to sell and develop along their rights of way. It was a subsidy in real estate instead of cash.

While there is a future for freight being shipped by rail, as time goes on technology will make passenger rail less and less economically feasible. As driverless technology becomes more widespread, it will be much more convenient to “hire” a car to transport you from Point A to Point B. The enormous capital that is needed to build and maintain a rail system will ultimately help speed the spread of driverless cars. This will become our new mass transit.

Not only is the self-contained driverless vehicle ultimately a cheaper alternative, it will be able to safely travel at high speeds closer to other vehicles than autos can now. When arriving at a destination, they will self-park not in the garages and lots that we see today but packed bumper to bumper to accommodate many more vehicles. This future may be a few decades away…but, it is coming. To look at the 200-year-old technology of railroads and call it the future is to live in the past.

The market will ultimately decide whether Brightline succeeds or not. I would suspect that without a government subsidy of some sort, it never will happen or continue for very long. The Treasure Coast needs to continue to fight against Brightline as well as the increased freight that may come. Stuart could be devastated by one derailed car of oil, chemicals or compressed gas. This 19th century mode of transportation should be confined to history books not to our downtowns.

The Battle of the Chickens

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There is a battle brewing in Stuart known as the “Battle of the Chickens.”  I never thought the city commission, and especially the staff, would be spending such an inordinate amount of time over this issue. What is at stake is whether residents in single family homes can legally have chickens in their backyards. There are passionate supporters on both sides of the chicken controversy.

It all began last year when a group of residents approached the city and asked about keeping chickens. Ground Floor Farms, our urban farm, spearheaded the effort. After two or three meetings it was decided to allow Ground Floor Farms to keep up to 30 chickens in a coop that is fenced. The farm was to be ground zero for our experiment. The commission agreed to address back yard chickens at a later date.

I was not in favor of back yard chickens last year. In fact, I thought it was a dumb idea. But over that year, I have visited Ground Floor Farm and spoke to others who sincerely wanted the ability to have a few chickens. I now believe that it is something that should not be banned.

Why should chickens be outlawed? My neighbor has an outdoor aviary. Why is it permissible to have a parrot or other type bird but not a chicken. Dogs or cats are no problem but a chicken is? Why should gallus domesticus be treated differently within Stuart? I just couldn’t come up with a good reason.

The proposed ordinance was adapted from St. Petersburg’s ordinance. St. Petersburg allows 10 fowl of any kind on a lot while Stuart caps the number at 4 chickens. There are no roosters and the coops and runs must be in the back yard hidden by a 6 foot wall or opaque fence. St. Petersburg has a population 16 times our size. There are at least 35 other municipalities in Florida that allow chickens including Sarasota, Pensacola and Tallahassee.

So why is there such a controversy over chickens? It seems that it could be generational. Some baby boomers believe chickens don’t belong within an urban environment. However, as our urban farm has proved the definition of what does and doesn’t belong within a city is broadening and expanding. The proponents are in their 30’s who have young children. They want to give their offspring hands-on learning experiences. Should they have to move to unincorporated Martin County to do so? I don’t think it is good policy to chase the future from the city.

At our commission meeting on Monday, the Realtors Association of Martin County asked that they be given time to study the effects on home prices and investor interest in this “radical idea”. It is hardly a radical notion since it is even legal in New York City and San Francisco. The median price of a home in Stuart since April 2014 (the month of the ordinance taking effect in St. Pete) has risen 43%. The median home price in St Petersburg is 40%. The average price in St. Petersburg has gone from $168,000 to $334,000 in the same time period. Chickens do not seem to be a determinate factor in price increase.

I believe the City of Stuart has more important matters to deal with than chickens. I believe that this is not an earth shattering issue that will cause calamity throughout the town. Presently there are residents who have chickens surreptitiously. This tells me that their neighbors either don’t know they have them or they aren’t a nuisance. This is much ado about nothing. Like golf carts there will be a limited demand for chickens. Besides if it becomes a problem it would be easy enough to change the ordinance.

We do not live in a gated community. There is a certain amount of give and take when living in a city. Stuart is not Celebration or The Villages or even Sewall’s Point. It is a place where people of different races, incomes, back rounds and ages live side by side. The “Battle of the Chickens” may seem funny and in one respect it is. The battle also represents our ability to attract young residents and accommodate the needs of all our citizens instead of just the few.

Tax Cuts Are Easy…Governing Is Hard

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As I write this, the Florida Legislature is poised to pass a bill allowing a constitutional amendment of another $25,000 tax exemption for homestead properties. If approved by 60% of the voters, counties and cities will see a shortfall of $750,000,000 in the first year going to over $800,000,000 in a few years. Where do we make this up in our budgets? This unfunded mandate will result in businesses and vacation homes taking on more and more of the real estate tax burden. This makes Florida less competitive and friendly toward business and 2nd home buyers.

This is bad idea for several reasons. It is an unfunded mandate on localities by the state. They are giving a tax cut by the worst possible means because it does not result in equal treatment for all citizens and businesses. Tallahassee is not taking any money from their coffers. If they want to give the citizens a tax break, why not take it out of the state’s amount of sales tax collected and rebate the $750,000,000 directly to homeowners….a check sent from the State of Florida directly to you.

That won’t happen because the pols in Tallahassee would then have less money to give to their crony capitalist friends in big business, labor and agriculture. It is easy to bully local government because they can. The legislature and governor are arguing over billions of dollars. I am just trying to find a few thousand to pay a police officer. For, make no mistake, it is local governments that pay for police and fire, street lights and sanitation with taxes. What would you rather have…your money pay for a faraway bureaucrat or a local E.M.T?  This is your choice in a nutshell.

If we have less revenue, a decision will have to be made on where to spend those diminished resources. Certain services will have to be provided (e.g., Water and Police), but others like Parks and Recreation will be curtailed. And, as time goes on, through attrition a fire fighter won’t be replaced. All the while, the pols in Tallahassee will tell you that they gave you a tax cut.

When you increase the homestead exemption, fewer homeowners contribute any money to the services they demand. We currently have 65% of the residents in Stuart paying no tax except the Fire Fee. Not only is this fiscally unsustainable, it is also civicly wrong. People have no skin in the game. They can demand services, and weak bureaucrats and elected officials will continue to provide them…until they can’t any longer.

For a healthy democracy, everyone needs to participate by voting but also by paying. There is no free ride. It is easy to vote yourself a tax cut. What this means is more than a tax cut. It is also a cut in the quality of life for yourself and your neighbor…your children and your parents. As Floridians, we have been eager to think that services don’t have to be paid for in order to be received. That someone else will pick up the tab. We can have everything and pay nothing for it.

You know why Tallahassee pols need to give you tax cuts? It is because they provide very little else. Even when we vote to have clean water and rivers, they use the money to feather their friends’ nests. They have an $83 billion budget, and they are keeping it all. Their tax cuts come at the expense of local government. Our city needs to keep the lights on and the streets safe. That costs money. Next time you need a cop, call Florida Department of Law Enforcement and see if there is a response.