In Your Corner

We want to thank all MCTA members, other Martin County non-profit organizations and the many concerned taxpayers that responded to our call for action against authorizing Stormwater and Fire Service assessments. Your voices were heard. Even the Commissioners pushing to have the fee option available capitulated and the measure was unanimously defeated. This killed the Commission’s ability to impose assessments for unincorporated Martin County for the next budget cycle, but we must remain vigilant These “fees” would avoid the constitutional restrictions on property taxes and allow virtually unchecked increases in County spending as other tax revenues would be reallocated. Also, these fees would be based on “County requirements” largely determined by those receiving the funds. This decision was good for taxpayers, especially businesses, agriculture and reduced/exempt taxpayers and institutions.

It will, however, be the source of serious difficulties for the County Administration. The taxes and fees collected for the 2009 fiscal year highlights the situation.

Martin County – FY 2009 Local Revenues (in dollars)

Source FY09 - Budget FY09 - Collections - Difference

Property Taxes - 141,310,419 - 142,949,414 - 1,638,995

Impact Fees - 2,510,700 - 946,924 - (1,563,776)

Building Permit Fees - 2,500,000 - 1,771,679 - (728,321)

Ambulance Fees - 3,404,325 - 3,384,314 - (20,011)

Tourist Tax - 1,186,487 - 1,022,514 - (163,973)

Dev. Review Fees - 2,002,000 - 695,836 - (1,306,164)

Interest - 5,293,113 - 2,980,797 - (2,312,316)

Totals - $158,216,044 - $153,751,478 - ($4,464,566)

The bottom line is that last year’s revenues were nearly $4.5 million below estimates and with expenditures over budget the end result was a $19 million shortfall. Projections for this year (FY 2010) are for just over $145,000,000 – down another $9,000,000 from last year’s actual. In addition, asset valuations that are the basis for the FY 2011 property taxes will be finalized in a few weeks and informed projections are for a further $12 million decrease in revenues.

Maybe our State and local economies will improve and receipts will be better than projected – we certainly hope so. However, the indications are not good and there are only two options available to the County: cut expenditures or raise local taxes and fees. With today’s economy, significantly raising taxes would be self-defeating – and intolerable to taxpayers/voters. That leaves reducing spending.

The County Staff have suffered through 3 years of cuts that resulted in nearly 100 job losses. The Constitutional’s staffs have been cut by 45, including 34 of the Sheriff’s personnel. During the same period the Fire/Rescue Service has added 37 personnel and their budgets continue to grow as all other County functions suffer significant reductions. We hate to keep harping on the Fire/Rescue folks – they do a great job- but this is exactly why we are so adamantly opposed to assessments, especially for the Fire Service. We cannot see giving the Commission a funding option that reduces their oversight and political liability when they have proven unable to control this situation. This situation is unacceptable as well as unsustainable

One of the options that the commissioners should consider is outsourcing some or all of the Fire/Rescue services, as have been implemented by other Florida cities/counties. An easy example is the Lifeguard Service where we are paying over $1.2 million for just 16 personnel. We have suggested for years that an independent evaluation of all of Martin County’s fire services be undertaken with the goal of consolidation and efficiency of operation.

There are many other viable solutions to reduced spending without cutting essential services or emergency response times. We will make specific recommendations in this and other areas as soon as the official 2011 revenue figures are released, but it is up to our Commissioners to make the hard decisions. We will certainly continue to monitor and report on them.