It's Your Money

Last week was the most important one in the local government’s year for your Taxpayers’ Association. On Monday The City of Stuart finalized their preliminary budget and the County began evaluation of theirs. On Tuesday the County finalized their draft and the School Board formally approved theirs. We urge our members and other taxpayers to watch the County and School deliberations on MCTV channel 20 or visit the County and City websites. Due to space limitations we will not discuss the already formally approved School District budget, but concentrate on the County budget that will not be formally approved until September. The following were what we considered to be the high points:

- The City of Stuart absorbed their reduced property and other tax revenues by reduced spending to maintain their current millage rate. We applauded this decision that will translate into a tax decrease for most Stuart residents and businesses. The County should have followed their lead.

- The County’s Constitutional Officers (Sheriff, Clerk of Court, Tax Appraiser, Tax Collector and Supervisor of Elections all maintained or reduced their budget requests for 2010. We reiterate the public praise we have already given to the Sheriff for his budget that has been maintained or reduced for three yeas in a row.

- We want to especially commend Ms Ruth Pietruszewski, our new Tax Collector. She collected 99.9% of 2009 taxes due (only $22,000 still outstanding of $300 million) during our severe economic downturn. She also achieved many operational efficiencies and reduced her collection expenses over 9%. She has instituted a number of programs to improve customer service and began selling SunPass transponders, which will bring new source of income to the County.

Unfortunately, there were also low points that need to be highlight so residents, especially voters, can weigh in before the County budget is formally approved.

- We are concerned about the County relying on ASSESSMENTS rather than TAXES to fund specific functions. Following Commission approval to assess rather than tax for Storm Water Management there was a $2 million increase in the Storm Water budget for 2010. We understand the reasoning presented, but a 22% up tick is excessive, especially during the current economic downturn. This also brings into question the proposed transfer of County Fire Service funding to a similar ASSESSMENT system next year. Their 2010 operating budget is 97% personnel costs and has been significantly increased due to 42 new hires and 30 positions created this year. Thirty-three of these personnel are currently 90% funded by a federal grant that rapidly decreases to zero over the next four years. There will also be capital equipment to replace. We believe the total amount redistributed in 2011 by ASSESSING Fire Service could amount to well over $30 million with much of it placed on farms, churches and other previously tax exempt/reduced properties. We estimate that there will be another $25 million in taxes levied for the Rescue/Ambulance portion that Florida Courts will not allowed to be funded by assessments. Also, the IRS may not consider assessments deductible. The 2008 IRS Form 1040 instructions for personal property tax deductions states: “Enter the state and local personal property taxes you paid, but only if the taxes were base on value alone and were imposed on a yearly basis.”

- We were disappointed with the Commission’s initial stand on funding of their individual Municipal Service Taxing Units. These MSTUs are a Commissioner’s specific taxes only charged to residents in their district and used to fund their constituents’ local projects. There is currently $6.7 million in these accounts with another $230,000 budgeted for 2010. While not huge tax dollars, the average millage for these accounts is up 13.5% this year. This is not demonstrating the right Commission leadership for a time when there are many County layoffs/furloughs. We believe that each Commissioner should have a yearly MSTU stipend of $25–50,000 to use as seed money for volunteer projects and district activities. Any funds not spent should be refunded to the individual district by a direct reduction to the next year’s MSTU millage. Any project needing more resources or multi-year support should have to compete before the entire Commission for County-wide funding. We applaud Ms Valliere for zeroing her 2010 MSTU funds and highlighting the issue.

n summary, there were pluses and disappointments and we do not agree with some of the County Commission decisions, particularly those mentioned above and the 8+% increase in 2010 property tax millage. However, Ms Kryzda, Acting County Commissioner, should be thanked for melded County departments’ and Constitutional inputs with numerous Commissioner “instructions” into a well-run, efficient presentation

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